Nalogovy Kodeks January 2009

Code of the Republic of Kazakhstan
On taxes and other obligatory payments to the budget (the tax code)
This is an unofficial translation and has been prepared for general guidance only. While every effort has been made to offer a current and accurate translation, errors can occur. This translation is provided as is, without any guarantee of completeness or accuracy and without warranty of any kind, express or implied, and should not be used without professional advice. Legislation and the interpretation of legislation change frequently in Kazakhstan, and as such changes may be made to this translation from time to time without notice to the user. In no event will Deloitte TCF be liable to any party for any direct, indirect, special or other consequential damages for use of this translation.
Table of contents
1. General part Section 1. General provisions Chapter 1. Main provisions ARTICLE 1. RELATIONS GOVERNED BY THIS CODE ARTICLE 2. TAX LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 3. FORCE OF TAX LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 4. PRINCIPLES OF TAXATION IN THE REPUBLIC OF KAZAKHSTAN ARTICLE 5. PRINCIPLE OF THE OBLIGATORY NATURE OF TAXATION ARTICLE 6. PRINCIPLE OF THE DETERMINACY OF TAXATION ARTICLE 7. PRINCIPLE OF THE FAIRNESS OF TAXATION ARTICLE 8. PRINCIPLE OF UNIFORMITY OF THE TAX SYSTEM ARTICLE 9. PRINCIPLE OF TRANSPARENCY OF TAX LEGISLATION OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 10. TAX POLICY ARTICLE 11. TAX ADVISORY COMMITTEE ARTICLE 12. BASIC TERMS APPLIED IN THIS CODE Chapter 2. Taxpayer and tax agent rights and obligations. Representation in tax relations ARTICLE 13. TAXPAYER RIGHTS ARTICLE 14. TAXPAYER OBLIGATIONS ARTICLE 15. TAX AGENT RIGHTS AND OBLIGATIONS ARTICLE 16. GUARANTEE AND PROTECTION OF TAXPAYER (TAX AGENT) RIGHTS ARTICLE 17. REPRESENTATION IN TAX RELATIONS GOVERNED BY THIS CODE Chapter 3. Bodies of the tax service. Customs bodies. Interaction of the bodies of the tax service with other state bodies ARTICLE 18. ROLE AND STRUCTURE OF THE BODIES OF THE TAX SERVICE ARTICLE 19. RIGHTS OF THE BODIES OF THE TAX SERVICE ARTICLE 20. OBLIGATIONS OF THE BODIES OF THE TAX SERVICE ARTICLE 21. CONFLICT OF INTEREST ARTICLE 22. AUTHORITY OF THE CUSTOMS BODIES TO COLLECT TAXES ARTICLE 23. AUTHORITY OF LOCAL EXECUTIVE BODIES ARTICLE 24. INTERACTION BETWEEN BODIES OF THE TAX SERVICE, THE AUTHORISED
STATE AND LOCAL EXECUTIVE BODIES ARTICLE 25. FINANCIAL, LEGAL AND SOCIAL PROTECTION OF OFFICIALS OF THE BODIES OF THE TAX SERVICE
21 21 21 21 21 21 21 22 22 22 22 22 22 22 22 27 27 28 28 29 29 29 29 30 31 33 33 33 33 34 34 34 34 35 35 35 35 35 35 36 36 36 36 38
Section 2. Tax obligations Chapter 4. General provisions ARTICLE 26. TAX OBLIGATIONS ARTICLE 27. OBJECTS OF TAXATION AND (OR) OBJECTS RELATING TO TAXATION ARTICLE 28. TAX BASE ARTICLE 29. TAX RATE ARTICLE 30. TAX PERIOD Chapter 5. Fulfilment of tax obligations ARTICLE 31. FULFILMENT OF TAX OBLIGATIONS ARTICLE 32. SPECIAL CONSIDERATIONS FOR CALCULATING TAXES AND OTHER OBLIGATORY PAYMENTS
TO THE BUDGET IN THE FULFILMENT OF A TAX OBLIGATION ARTICLE 33. DEADLINE FOR FULFILLING A TAX OBLIGATION ARTICLE 34. ORDER OF PRIORITY FOR SETTLING A TAX DEBT ARTICLE 35. FULFILMENT OF TAX OBLIGATIONS FROM TRANSFERRING PROPERTY TO TRUST MANAGEMENT ARTICLE 36. SPECIFIC CONSIDERATIONS FOR FULFILLING TAX OBLIGATIONS WHEN TRANSFERRING PROPERTY TO TRUST MANAGEMENT
www.deloitte.kz Member of Deloitte Touche Tohmatsu
ARTICLE 37. FULFILMENT OF THE TAX OBLIGATIONS OF A LEGAL ENTITY UNDERGOING LIQUIDATION, OR WHEN A STRUCTURAL SUBDIVISION OR PERMANENT ESTABLISHMENT OF A NON-RESIDENT LEGAL ENTITY CEASE ACTIVITIES IN THE REPUBLIC OF KAZAKHSTAN ARTICLE 38. FULFILMENT OF THE TAX OBLIGATION OF A RESIDENT LEGAL ENTITYS STRUCTURAL
SUBDIVISION CEASING OPERATIONS ARTICLE 39. FULFILMENT OF A TAX OBLIGATION AFTER THE REORGANISATION OF A LEGAL ENTITY ARTICLE 40. SPECIAL CONSIDERATIONS FOR FULFILLING THE TAX OBLIGATION OF A LEGAL ENTITY FOLLOWING REORGANISATION BY DIVISION ARTICLE 41. FULFILMENT OF A TAX OBLIGATION OF AN INDIVIDUAL ENTREPRENEUR CEASING OPERATIONS ARTICLE 42. FULFILMENT OF A TAX OBLIGATION OF PRIVATE NOTARIES AND ADVOCATES CEASING OPERATIONS ARTICLE 43. SPECIAL CONSIDERATIONS FOR CERTAIN CATEGORIES OF TAXPAYERS CEASING ACTIVITIES TO FULFIL TAX OBLIGATIONS ARTICLE 44. FULFILMENT OF THE TAX OBLIGATION OF AN INDIVIDUAL DECLARED AS MISSING ARTICLE 45. REPAYMENT OF THE TAX DEBT OF A DECEASED INDIVIDUAL ARTICLE 46. STATUTE OF LIMITATION OF A TAX OBLIGATION AND CLAIM
38 40 40 41 42 43 45 46 47 47 48 48 48 48 49 49 50 50 50 51 51 51 52 52 53 53 54 54 55 55 56 56 56 56 57 59 60 63 64 64 65 65 66 67 68 3
Chapter 6. Change to tax payment deadlines. Grounds for cancelling a tax obligation ARTICLE 47. GENERAL PROVISIONS ARTICLE 48. BODY AUTHORISED TO CHANGE TAX PAYMENT DEADLINES ARTICLE 49. PROCEDURE FOR CHANGING TAX PAYMENT DEADLINES TO PAY TAXES UNDER SECURITY
OF A BANK GUARANTEE ARTICLE 50. PROCEDURE FOR CHANGING TAX PAYMENT DEADLINES TO PAY TAXES UNDER THE SECURITY OF PROPERTY ARTICLE 51. PROCEDURE FOR CONCLUDING A PROPERTY SECURITY AGREEMENT ARTICLE 52. LOSS OF VALIDITY OF A DECISION TO CHANGE A TAX PAYMENT DEADLINE ARTICLE 53. PROCEDURE FOR RECOVERING AND REALISING SECURED PROPERTY, AND ALSO REQUIREMENTS FOR FULFILLING A BANK GUARANTEE ARTICLE 54. CESSATION OF A TAX OBLIGATION
2. Special part Section 3. General provisions ARTICLE 55. TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET Chapter 7. Tax accounting ARTICLE 56. TAX ACCOUNTING AND ACCOUNTING DOCUMENTATION ARTICLE 57. TAX ACCOUNTING RULES ARTICLE 58. SEPARATE TAX ACCOUNTING REGULATIONS ARTICLE 59. REQUIREMENTS FOR COMPILING AND STORING ACCOUNTING DOCUMENTATION ARTICLE 60. REQUIREMENTS FOR TAX ACCOUNTING POLICY Chapter 8. Tax forms ARTICLE 61. TAX FORMS AND THE PROCEDURE FOR COMPILING THEM ARTICLE 62. STORAGE PERIOD FOR TAX FORMS 1. TAX REPORTING ARTICLE 63. GENERAL PROVISIONS ARTICLE 64. SPECIAL CONSIDERATIONS FOR THE COMPILATION OF TAX REPORTING ARTICLE 65. SPECIAL CONSIDERATIONS OF CORPORATE INCOME TAX REPORTING ARTICLE 66. FEATURES OF TAX REPORTING FOR VALUE ADDED TAX ARTICLE 67. FEATURES OF TAX REPORTING ON INDIVIDUAL INCOME TAX AND SOCIAL TAX ARTICLE 68. PROCEDURE FOR FILING TAX REPORTING ARTICLE 69. PROCEDURE FOR RECALLING TAX REPORTING ARTICLE 70. INTRODUCTION OF AMENDMENTS AND ADDITIONS TO TAX REPORTING ARTICLE 71. AUTHORISED BODYS EXTENSION OF THE TAX REPORTING FILING DEADLINE ARTICLE 72. TAX BODYS EXTENSION OF THE FILING DEADLINE FOR TAX REPORTING ARTICLE 73. PROCEDURE FOR A TAXPAYER (TAX AGENT) TO SUSPEND (EXTEND, RENEW) THE FILING
OF TAX REPORTING ARTICLE 74. PROCEDURE FOR INDIVIDUAL ENTREPRENEURS APPLYING THE PATENT SPECIAL TAX REGIME FOR SMALL BUSINESSES TO SUSPEND (EXTEND, RENEW) THE FILING OF TAX REPORTING
2. TAX APPLICATIONS
ARTICLE 75. GENERAL PROVISIONS ARTICLE 76. PROCEDURE FOR FILING TAX APPLICATIONS 3. TAX REGISTERS ARTICLE 77. TAX REGISTERS Chapter 9. Characteristics of tax accounting ARTICLE 78. FINANCIAL LEASE ARTICLE 79. LONG-TERM CONTRACTS ARTICLE 80. JOINT ACTIVITIES Section 4. Corporate income tax Chapter 10. General provisions ARTICLE 81. PAYERS ARTICLE 82. OBJECTS OF TAXATION Chapter 11. Taxable income ARTICLE 83. TAXABLE INCOME 1. AGGREGATE ANNUAL INCOME ARTICLE 84. AGGREGATE ANNUAL INCOME ARTICLE 85. INCOME INCLUDED IN AGGREGATE ANNUAL INCOME ARTICLE 86. REALISATION INCOME ARTICLE 87. CAPITAL GAINS ARTICLE 88. INCOME FROM A WRITE-OFF OF LIABILITIES ARTICLE 89. INCOME FROM DOUBTFUL DEBTS ARTICLE 90. INCOME FROM A REDUCTION IN THE SIZE OF PROVISIONS ARTICLE 91. INCOME FROM THE ASSIGNMENT OF A DEBT CLAIM ARTICLE 92. INCOME FROM THE RETIREMENT OF FIXED ASSETS ARTICLE 93. INCOME FROM AN ADJUSTMENT TO GEOLOGICAL STUDY AND PREPARATION EXPENSES TO PRODUCE NATURAL RESOURCES, AND ALSO OTHER SUBSOIL USER EXPENSES ARTICLE 94. INCOME FROM CONTRIBUTIONS TO A FIELD RECOVERY FUND THAT EXCEED
ACTUAL EXPENSES USED TO MITIGATE THE CONSEQUENCES OF FIELD DEVELOPMENT ARTICLE 95. COMPENSATION RECEIVED FOR PRIOR DEDUCTIONS ARTICLE 96. PROPERTY RECEIVED FREE OF CHARGE ARTICLE 97. INCOME RECEIVED FROM OPERATING SOCIAL SPHERE FACILITIES ARTICLE 98. INCOME (LOSS) FROM THE SALE OF AN ENTERPRISE AS A PROPERTY COMPLEX ARTICLE 99. ADJUSTMENTS TO AGGREGATE ANNUAL INCOME
68 68 68 68 70 70 71 71 72 72 72 72 73 73 73 73 73 75 75 76 77 77 78 78 78 78 78 79 79 79 80 80 80 82 82 82 84 84 84 85 85 85 86 86 87 87 87 88
2. DEDUCTIONS ARTICLE 100. DEDUCTIONS ARTICLE 101. DEDUCTION OF BUSINESS TRIP COMPENSATION ARTICLE 102. DEDUCTION OF HOSPITALITY EXPENSES ARTICLE 103. INTEREST DEDUCTIONS ARTICLE 104. DEDUCTIONS OF DOUBTFUL DEBTS PAID ARTICLE 105. DEDUCTIONS ON DOUBTFUL CLAIMS ARTICLE 106. DEDUCTIONS ON CONTRIBUTIONS TO RESERVE FUNDS ARTICLE 107. DEDUCTIONS ON FIELD RECOVERY EXPENSES AND CONTRIBUTIONS TO LIQUIDATION FUNDS ARTICLE 108. DEDUCTIONS OF SCIENTIFIC RESEARCH, AND RESEARCH TECHNOLOGY EXPENSES ARTICLE 109. DEDUCTION OF INSURANCE PREMIUM EXPENSES AND CONTRIBUTIONS
TO UNDERWRITING SYSTEMS ARTICLE 110. DEDUCTION OF EXPENSES ON ACCRUED EMPLOYEE INCOME AND OTHER PAYMENTS TO INDIVIDUALS ARTICLE 111. DEDUCTIONS FOR EXPENSES INCURRED IN GEOLOGICAL SURVEYING AND PREPARATION TO EXTRACT NATURAL RESOURCES, AND OTHER SUBSOIL USER DEDUCTIONS ARTICLE 112. DEDUCTION OF SUBSOIL USER EXPENSES TO TRAIN KAZAKHSTAN STAFF AND DEVELOP THE LOCAL SOCIAL SPHERE ARTICLE 113. DEDUCTION OF NEGATIVE EXCHANGE DIFFERENCES EXCEEDING POSITIVE EXCHANGE DIFFERENCES ARTICLE 114. DEDUCTION OF TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET ARTICLE 115. NON-DEDUCTIBLE COSTS
3. FIXED ASSET DEDUCTIONS ARTICLE 116. FIXED ASSETS ARTICLE 117. BALANCE VALUE ARTICLE 118. RECEIPT OF FIXED ASSETS ARTICLE 119. RETIREMENT OF FIXED ASSETS ARTICLE 120. CALCULATION OF DEPRECIATION RATES ARTICLE 121. OTHER DEDUCTIONS ON FIXED ASSETS ARTICLE 122. DEDUCTION OF SUBSEQUENT EXPENSES 4. INVESTMENT TAX PREFERENCES ARTICLE 123. INVESTMENT TAX PREFERENCES ARTICLE 124. APPLICATION OF PREFERENCES ARTICLE 125. SPECIAL CONSIDERATIONS FOR THE TAX ACCOUNTING OF PREFERENCE OBJECTS 5. DERIVATIVES ARTICLE 126. GENERAL PROVISIONS ARTICLE 127. INCOME FROM DERIVATIVES, EXCEPT FOR SWAPS ARTICLE 128. SWAP INCOME ARTICLE 129. SPECIAL CONSIDERATIONS FOR THE TAX ACCOUNTING OF HEDGING OPERATIONS ARTICLE 130. SPECIAL CONSIDERATIONS OF TAX ACCOUNTING WHEN EXERCISING A DERIVATIVE BY
SUPPLYING AN UNDERLYING ASSET
88 88 89 91 92 94 95 95 96 96 98 98 99 99 99 99 99 100 100 100 100 101 101 102 103 103 103 104 104 105 105 105 105 106 107 107 107
6. ADJUSTMENT OF INCOME AND DEDUCTIONS ARTICLE 131. GENERAL PROVISIONS ARTICLE 132. ADJUSTMENT TO INCOME AND DEDUCTIONS Chapter 12. Reduction of taxable income and the exemption of certain categories of taxpayers from taxation ARTICLE 133. REDUCTION OF TAXABLE INCOME ARTICLE 134. TAXATION OF NON-COMMERCIAL ORGANISATIONS ARTICLE 135. TAXATION OF SOCIAL SPHERE ORGANISATIONS Chapter 13. Losses ARTICLE 136. DEFINITION OF LOSSES ARTICLE 137. LOSSES CARRIED FORWARD ARTICLE 138. CARRY FORWARD OF LOSSES FOLLOWING REORGANISATION Chapter 14. Procedure for calculating and deadline for paying corporate income tax ARTICLE 139. CALCULATION OF CORPORATE INCOME TAX ARTICLE 140. SPECIAL CONSIDERATIONS FOR THE CALCULATION AND PAYMENT OF CORPORATE INCOME
TAX BY CERTAIN CATEGORIES OF TAXPAYERS ARTICLE 141. CALCULATION OF ADVANCE PAYMENTS ARTICLE 142. DEADLINE AND PROCEDURE FOR PAYING CORPORATE INCOME TAX
Chapter 15. Corporate income tax withheld at the source of payment ARTICLE 143. INCOME TAXABLE AT THE SOURCE OF PAYMENT ARTICLE 144. PROCEDURE FOR CALCULATING CORPORATE INCOME TAX WITHHELD AT THE SOURCE
OF PAYMENT ARTICLE 145. OF PAYMENT ARTICLE 146.
PROCEDURE FOR TRANSFERRING CORPORATE INCOME TAX WITHHELD AT THE SOURCE STATEMENT OF CORPORATE INCOME TAX WITHHELD AT THE SOURCE OF PAYMENT 107 108 108 108 108 108 109 109 109 110 5
Chapter 16. Tax rates, tax period and tax declaration ARTICLE 147. TAX RATES ARTICLE 148. TAX PERIOD ARTICLE 149. TAX DECLARATIONS Section 5. Taxation of organisations operating in special economic zones Chapter 17. Taxation of organisations operating in special economic zones ARTICLE 150. GENERAL PROVISIONS ARTICLE 151. CALCULATION, PROCEDURE AND DEADLINE FOR THE PAYMENT OF TAX
ARTICLE 152. TAX PERIOD AND TAX REPORTING Section 6. Individual income tax Chapter 18. General provisions ARTICLE 153. PAYERS ARTICLE 154. SPECIAL CONSIDERATIONS FOR THE TAXATION OF FOREIGN NATIONALS AND STATELESS INDIVIDUALS WHO ARE RESIDENTS OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 155. OBJECTS OF TAXATION ARTICLE 156. NON-TAXABLE INCOME ARTICLE 157. NON-TAXABLE AGGREGATE ANNUAL INCOME ARTICLE 158. TAX RATES ARTICLE 159. TAX PERIOD Chapter 19. Income taxable at the source of payment ARTICLE 160. INCOME TAXABLE AT THE SOURCE OF PAYMENT ARTICLE 161. CALCULATION, WITHHOLDING AND PAYMENT OF TAX ARTICLE 162. INDIVIDUAL INCOME TAX AND SOCIAL TAX DECLARATIONS 1. EMPLOYEE INCOME ARTICLE 163. EMPLOYEE INCOME ARTICLE 164. EMPLOYEE INCOME IN KIND ARTICLE 165. EMPLOYEE INCOME IN THE FORM OF MATERIAL BENEFITS ARTICLE 166. TAX DEDUCTIONS ARTICLE 167. CALCULATION AND WITHHOLDING OF TAX 2. INCOME OF AN INDIVIDUAL FROM A TAX AGENT ARTICLE 168. INCOME OF AN INDIVIDUAL FROM A TAX AGENT ARTICLE 169. CALCULATION OF TAX 3. PENSION PAYMENTS FROM PENSION SAVINGS FUNDS ARTICLE 170. PENSION PAYMENTS ARTICLE 171. CALCULATION OF TAX 4. INCOME IN THE FORM OF DIVIDENDS, INTEREST AND WINNINGS ARTICLE 172. CALCULATION OF TAX 5. SCHOLARSHIPS ARTICLE 173. SCHOLARSHIPS ARTICLE 174. CALCULATION OF TAX 6. INCOME FROM CUMULATIVE INSURANCE AGREEMENTS ARTICLE 175. INCOME FROM CUMULATIVE INSURANCE AGREEMENTS ARTICLE 176. CALCULATION OF TAX Chapter 20. Income not taxable at the source of payment ARTICLE 177. INCOME NOT TAXABLE AT THE SOURCE OF PAYMENT ARTICLE 178. CALCULATION OF INDIVIDUAL INCOME TAX ON INCOME NOT TAXABLE AT THE SOURCE
OF PAYMENT ARTICLE 179.
111 111 111 111 111 111 113 116 116 116 116 116 117 117 117 117 118 118 118 119 119 119 120 120 120 120 121 121 121 121 121 121 121 122 122 122 122 123 123 123 124 124 124 125 125 125
TAX PAYMENT DEADLINE
1. PROPERTY INCOME ARTICLE 180. PROPERTY INCOME 2. INCOME OF PRIVATE NOTARIES AND ADVOCATES ARTICLE 181. INCOME OF PRIVATE NOTARIES AND ADVOCATES ARTICLE 182. CALCULATION AND PAYMENT OF TAX 3. INCOME OF INDIVIDUAL ENTREPRENEURS ARTICLE 183. INCOME OF INDIVIDUAL ENTREPRENEURS 4. OTHER INCOME
ARTICLE 184. OTHER INCOME Chapter 21. Individual income tax declaration ARTICLE 185. INDIVIDUAL INCOME TAX DECLARATIONS ARTICLE 186. DECLARATION FILING DEADLINE ARTICLE 187. FAILURE TO CONFIRM A TAX PAYMENT Section 7. Special considerations of international taxation Chapter 22. General provisions ARTICLE 188. GENERAL PRINCIPLES OF INTERNATIONAL TAXATION ARTICLE 189. RESIDENTS ARTICLE 190. NON-RESIDENTS ARTICLE 191. PERMANENT ESTABLISHMENT OF A NON-RESIDENT ARTICLE 192. NON-RESIDENTS INCOME FROM SOURCES IN THE REPUBLIC OF KAZAKHSTAN
125 125 125 125 126 126 126 126 126 127 128 131
Chapter 23. Procedure for taxing the income of non-resident legal entities operating without 133 creating a permanent establishment in the Republic of Kazakhstan ARTICLE 193. PROCEDURE FOR CALCULATING AND WITHHOLDING INCOME TAX AT THE SOURCE
OF PAYMENT ARTICLE 194. INCOME TAX RATES AT THE SOURCE OF PAYMENT ARTICLE 195. PROCEDURE AND DEADLINE FOR TRANSFERRING INCOME TAX AT THE SOURCE OF PAYMENT ARTICLE 196. FILING OF TAX REPORTING ARTICLE 197. CALCULATION, WITHHOLDING AND TRANSFER OF TAX FROM CAPITAL GAINS AFTER THE REALISATION OF IMMOVABLE PROPERTY LOCATED IN THE REPUBLIC OF KAZAKHSTAN, AND SECURITIES, PARTICIPATION INTEREST RELATED TO SUBSOIL USE IN THE REPUBLIC OF KAZAKHSTAN
133 135 135 136
136 137 137 138 139 140 140 142 142 142 143 143 143 143
Chapter 24. Procedure for taxing the income of non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment ARTICLE 198. DEFINITION OF TAXABLE INCOME ARTICLE 199. PROCEDURE FOR TAXING NET INCOME ARTICLE 200. PROCEDURE FOR TAXING INCOME IN SPECIFIC CASES Chapter 25. Procedure for taxing the income of non-resident individuals ARTICLE 201. PROCEDURE FOR CALCULATING, WITHHOLDING AND TRANSFERRING INCOME TAX
AT THE SOURCE OF PAYMENT ARTICLE 202. PROCEDURE FOR TAXING THE INCOME OF THE FOREIGN EMPLOYEES OF A NON-RESIDENT LEGAL ENTITY WITHOUT A PERMANENT ESTABLISHMENT IN THE REPUBLIC OF KAZAKHSTAN ARTICLE 203. FILING OF A DECLARATION ON INDIVIDUAL INCOME TAX AND SOCIAL TAX FROM THE INCOME OF FOREIGN NATIONALS AND STATELESS INDIVIDUALS ARTICLE 204. PROCEDURE FOR TAXING THE INCOME OF A NON-RESIDENT INDIVIDUAL IN SPECIFIC CASES ARTICLE 205. FILING OF AN INDIVIDUAL INCOME TAX DECLARATION
Chapter 26. Special provisions under international treaties ARTICLE 206. CONDITIONS FOR THE APPLICATION OF AN INTERNATIONAL TREATY ARTICLE 207. PROCEDURE FOR APPLYING INTERNATIONAL TREATIES ARTICLE 208. METHODS FOR DEDUCTING A NON-RESIDENT LEGAL ENTITYS EXECUTIVE AND GENERAL ADMINISTRATIVE EXPENSES FOR THE PURPOSE OF TAXING INCOME FROM SOURCES IN THE REPUBLIC OF KAZAKHSTAN ARTICLE 209. PROPORTIONAL ALLOCATION OF EXPENSES METHOD ARTICLE 210. FEATURES OF THE CALCULATION OF THE CALCULATION INDEX WHEN APPLYING
THE PROPORTIONAL ALLOCATION OF EXPENSES METHOD IN SPECIFIC CASES ARTICLE 211. DIRECT DEDUCTION OF EXPENSES METHOD ARTICLE 212. PROCEDURE FOR APPLYING AN INTERNATIONAL TREATY IN RELATION TO THE COMPLETE OR PARTIAL EXEMPTION OF A NON-RESIDENTS INCOME RECEIVED FROM SOURCES IN THE REPUBLIC OF KAZAKHSTAN FROM TAXATION ARTICLE 213. PROCEDURE FOR APPLYING AN INTERNATIONAL TREATY IN RELATION EXEMPTING FROM TAXATION A NON-RESIDENTS INCOME FROM PROVIDING INTERNATIONAL TRANSPORTATION SERVICES THROUGH A PERMANENT ESTABLISHMENT ARTICLE 214. PROCEDURE FOR APPLYING AN INTERNATIONAL TREATY IN RELATION TO A PARTIAL EXEMPTION FROM TAXATION OF NET INCOME FROM A NON-RESIDENTS ACTIVITIES PERFORMED IN THE REPUBLIC OF KAZAKHSTAN THROUGH A PERMANENT ESTABLISHMENT
143 145 145 146
146
148
149
ARTICLE 215. PROCEDURE FOR APPLYING AN INTERNATIONAL TREATY IN RELATION TO EXEMPTING FROM TAXATION A NON-RESIDENT INDIVIDUALS INCOME RECEIVED FROM ENTITIES THAT ARE NOT TAX AGENTS ARTICLE 216. PROCEDURE FOR TRANSFERRING INCOME TAX FROM NON-RESIDENTS INCOME
TO THE BUDGET OR TO ESCROW ACCOUNTS ARTICLE 217. PROCEDURE FOR REFUNDING INCOME TAX FROM THE BUDGET OR AN ESCROW ACCOUNT ARTICLE 218. PROCEDURE FOR TRANSFERRING INCOME TAX FROM AN ESCROW ACCOUNT TO THE BUDGET ARTICLE 219. REQUIREMENTS FOR DOCUMENTS CONFIRMING RESIDENCE, AND FOR TAX APPLICATIONS FOR A REFUND OF INCOME TAX PAID FROM THE BUDGET OR AN ESCROW ACCOUNT BASED ON AN INTERNATIONAL TREATY ARTICLE 220. CERTIFICATE OF INCOME RECEIVED FROM SOURCES IN THE REPUBLIC OF KAZAKHSTAN AND TAX WITHHELD (PAID)
149 150 151 153
154 155 156 156 156 156 157 158 159 159 160 160 160 160 160 160 161 162 162 163
Chapter 27. Special considerations of the taxation of residents income from foreign trade activities ARTICLE 221. INCOME RECEIVED FROM SOURCES OUTSIDE OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 222. PROCEDURE FOR DEDUCTING THE EXPENSES OF A RESIDENT LEGAL ENTITY RELATED TO THE GENERATION OF INCOME FROM OUTSIDE OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 223. FOREIGN TAX CREDIT ARTICLE 224. INCOME RECEIVED IN A LOW-TAX COUNTRY ARTICLE 225. PROCEDURE FOR A RESIDENT TO APPLY AN INTERNATIONAL TREATY IN A FOREIGN COUNTRY ARTICLE 226. PROCEDURE FOR MUTUAL COOPERATION ARTICLE 227. ASSISTANCE IN TAX COLLECTION Section 8. Value added tax Chapter 28. General provisions ARTICLE 228. PAYERS ARTICLE 229. OBJECTS OF TAXATION Chapter 29. Taxable turnover ARTICLE 230. DEFINITION OF TAXABLE TURNOVER ARTICLE 231. TURNOVER FROM THE REALISATION OF GOODS, WORK AND SERVICES ARTICLE 232. NON-TAXABLE TURNOVER ARTICLE 233. REALISATION (PURCHASE) TURNOVER UNDER AGENCY AGREEMENTS ARTICLE 234. REALISATION (PURCHASE) TURNOVER CONCLUDED UNDER TRUST MANAGEMENT
AGREEMENTS ARTICLE 235. ACTIVITIES ARTICLE 236. ARTICLE 237.
REALISATION (PURCHASE) TURNOVER WITHIN THE FRAMEWORK OF AGREEMENTS ON JOINT PLACE OF REALISATION OF GOODS, WORK OR SERVICES COMPLETION DATE OF REALISATION TURNOVER 163 163 165 166
Chapter 30. Size of taxable turnover
ARTICLE 238. SIZE OF TAXABLE TURNOVER 166 ARTICLE 239. ADJUSTMENT TO THE SIZE OF TAXABLE TURNOVER 168 ARTICLE 240. ADJUSTMENT OF TAXABLE TURNOVER ON DOUBTFUL CLAIMS 168 ARTICLE 241. TAXABLE TURNOVER FROM THE PURCHASE OF WORK AND SERVICES FROM A NON-RESIDENT WHO IS NOT A PAYER OF VALUE ADDED TAX IN THE REPUBLIC OF KAZAKHSTAN AND WHO DOES NOT OPERATE THROUGH A BRANCH OR REPRESENTATIVE OFFICE 169 Chapter 31. Turnover taxable at the zero rate ARTICLE 242. EXPORT OF GOODS ARTICLE 243. CONFIRMATION OF AN EXPORT OF GOODS ARTICLE 244. TAXATION OF INTERNATIONAL TRANSPORTATION ARTICLE 245. TAXATION IN SPECIFIC CASES Chapter 32. Taxable imports ARTICLE 246. DEFINITION OF TAXABLE IMPORTS ARTICLE 247. SIZE OF TAXABLE IMPORTS Chapter 33. Turnover and imports exempt from value added tax ARTICLE 248. TURNOVER EXEMPT FROM VALUE ADDED TAX ARTICLE 249. TURNOVER FROM LAND AND RESIDENTIAL BUILDINGS ARTICLE 250. FINANCIAL SERVICES
169 169 169 170 171 172 172 172 172 172 173 174 8
ARTICLE 251. PROPERTY TRANSFERRED TO FINANCIAL LEASE ARTICLE 252. SERVICES PROVIDED BY NON-COMMERCIAL ORGANISATIONS ARTICLE 253. WORK AND SERVICES IN THE FIELDS OF CULTURE, SCIENCE AND EDUCATION ARTICLE 254. GOODS AND SERVICES IN THE FIELD OF MEDICAL AND VETERINARY ACTIVITIES ARTICLE 255. IMPORTS EXEMPT FROM VALUE ADDED TAX Chapter 34. Offset of value added tax ARTICLE 256. VALUE ADDED TAX TAKEN AS AN OFFSET ARTICLE 257. VALUE ADDED TAX NOT SUBJECT TO OFFSET ARTICLE 258. ADJUSTMENTS TO VALUE ADDED TAX OFFSET ARTICLE 259. ADJUSTMENTS OF VALUE ADDED TAX OFFSET WITH RESPECT TO DOUBTFUL DEBTS WHEN
LIABILITIES HAVE BEEN WRITTEN OFF ARTICLE 260. PROCEDURE FOR OFFSETTING VALUE ADDED TAX FROM REALISATION TURNOVER NOT SUBJECT TO VALUE ADDED TAX ARTICLE 261. PROPORTIONAL METHOD ARTICLE 262. SEPARATE METHOD
175 176 176 176 176 177 177 179 179 180 180 181 181 181 181 183 184 185 185 185 185 186 186 186 186 186 187 188 189 191 192 192 192 192 193 193 195 195 196 197 197 197 198 198 198 199 199 199 200 9
Chapter 35. Tax invoices ARTICLE 263. TAX INVOICES ARTICLE 264. SPECIAL CONSIDERATIONS FOR FREIGHT FORWARDING AGENTS TO ISSUE TAX INVOICES ARTICLE 265. PREPARATION OF TAX INVOICES FOLLOWING AN ADJUSTMENT TO TAXABLE TURNOVER Chapter 36. Procedure for calculating and paying tax ARTICLE 266. VALUE ADDED TAX PAYABLE TO THE BUDGET ON TAXABLE TURNOVER ARTICLE 267. PROCEDURE FOR PAYING VALUE ADDED TAX IN SPECIFIC CASES ARTICLE 268. RATES OF VALUE ADDED TAX ARTICLE 269. TAX PERIOD ARTICLE 270. TAX DECLARATION ARTICLE 271. DEADLINE FOR THE PAYMENT OF VALUE ADDED TAX Chapter 37. Mutual relations with the budget with respect to value added tax ARTICLE 272. REFUND OF VALUE ADDED TAX ARTICLE 273. REFUND OF EXCESS VALUE ADDED TAX ARTICLE 274. SIMPLIFIED PROCEDURE FOR THE REFUND OF EXCESS VALUE ADDED TAX ARTICLE 275. REFUND OF VALUE ADDED TAX PAID FOR GOODS, WORK OR SERVICES PURCHASED USING
A GRANT ARTICLE 276. VALUE ADDED TAX REFUND TO DIPLOMATIC OR EQUIVALENT REPRESENTATIONS ACCREDITED IN THE REPUBLIC OF KAZAKHSTAN, AND TO THEIR PERSONNEL
Section 9. Excise duties Chapter 38. General provisions ARTICLE 277. APPLICATION OF EXCISE DUTY ARTICLE 278. PAYERS ARTICLE 279. LIST OF EXCISABLE GOODS ARTICLE 280. EXCISE DUTY RATES Chapter 39. Taxation of excisable goods produced and realised in the Republic of Kazakhstan ARTICLE 281. OBJECTS OF TAXATION ARTICLE 282. TRANSACTION COMPLETION DATE ARTICLE 283. TAX BASE ARTICLE 284. SPECIAL FEATURES OF THE TAXATION OF ALL TYPES OF SPIRIT AND WINE MATERIALS WHEN
VARIOUS RATES ARE IN PLACE ARTICLE 285. DAMAGE OR LOSS OF EXCISABLE GOODS ARTICLE 286. DAMAGE OR LOSS OF EXCISE STAMPS OR INVENTORY CONTROL STAMPS ARTICLE 287. CRITERIA FOR RECORDING A REALISATION OF GASOLINE (EXCLUDING AVIATION) AND DIESEL IN THE REPUBLIC OF KAZAKHSTAN AS A WHOLESALE OR RETAIL REALISATION ARTICLE 288. CONFIRMATION OF AN EXPORT OF EXCISABLE GOODS ARTICLE 289. CALCULATION OF EXCISE DUTY ARTICLE 290. ADJUSTMENT TO THE TAX BASE ARTICLE 291. TAX DEDUCTIONS ARTICLE 292. DEADLINE FOR PAYING EXCISE DUTY
ARTICLE 293. PLACE OF PAYMENT OF EXCISE DUTY ARTICLE 294. PROCEDURE FOR TAXPAYERS TO CALCULATE AND PAY EXCISE DUTY FOR STRUCTURAL SUBDIVISIONS AND OBJECTS RELATING TO TAXATION ARTICLE 295. TAX PERIOD ARTICLE 296. TAX DECLARATION
201 201 201 201 202 202 202 202 203 203 203 203 203 203 204 204 204 204 204 204 205 206 206 210 210 210 210 210 210 211 212 212 212 212 212 212 212 212 213 213 213 213 213 213 213 214 214 214 215 215
Chapter 40. Taxation of the import of excisable goods

ARTICLE 297. TAX BASE OF IMPORTED EXCISABLE GOODS ARTICLE 298. DEADLINE FOR PAYING EXCISE DUTY ON EXCISABLE GOODS FOR IMPORT ARTICLE 299. IMPORT OF EXCISABLE GOODS EXEMPT FROM EXCISE DUTY
Section 10. Rent tax on exports Chapter 41. Rent tax on exports
ARTICLE 300. ARTICLE 301. ARTICLE 302. ARTICLE 303. ARTICLE 304. ARTICLE 305. ARTICLE 306.
PAYERS OBJECT OF TAXATION CALCULATION PROCEDURE RATES OF RENT TAX ON EXPORTS TAX PERIOD PAYMENT DEADLINE TAX DECLARATIONS
Section 11. Taxation of subsoil users Chapter 42. General provisions

ARTICLE 307. ARTICLE 308. ARTICLE 309. ARTICLE 310.
RELATIONS GOVERNED BY THIS SECTION TAXATION OF SUBSOIL USE OPERATIONS TAXATION OF ACTIVITIES NOT RELATED TO SUBSOIL USE OPERATIONS MAIN PRINCIPLES FOR KEEPING SEPARATE TAX ACCOUNTING FOR SUBSOIL USE CONTRACTS
Chapter 43. Bonuses

ARTICLE 311.
GENERAL PROVISIONS
1. SIGNATURE BONUS
ARTICLE 312. ARTICLE 313. ARTICLE 314. ARTICLE 315. ARTICLE 316.
GENERAL PROVISIONS PAYERS PROCEDURE FOR ESTABLISHING THE SIZE OF A SIGNATURE BONUS SIGNATURE BONUS PAYMENT DEADLINE TAX DECLARATION
2. COMMERCIAL DISCOVERY BONUS

ARTICLE 317. ARTICLE 318. ARTICLE 319. ARTICLE 320. ARTICLE 321. ARTICLE 322. ARTICLE 323. ARTICLE 324.
GENERAL PROVISIONS PAYERS OBJECT OF TAXATION TAX BASE PROCEDURE FOR CALCULATING A COMMERCIAL DISCOVERY BONUS COMMERCIAL DISCOVERY BONUS RATE COMMERCIAL DISCOVERY BONUS PAYMENT DEADLINE TAX DECLARATION
Chapter 44. Payment to reimburse historical costs

GENERAL PROVISIONS PAYERS PROCEDURE FOR SETTING PAYMENTS TO REIMBURSE HISTORICAL COSTS PAYMENT PROCEDURE AND DEADLINE TAX DECLARATION
Chapter 45. Minerals extraction tax

ARTICLE 330. ARTICLE 331.
GENERAL PROVISIONS PAYERS
1. MINERALS EXTRACTION TAX ON OIL
10
ARTICLE 332. OBJECT OF TAXATION ARTICLE 333. TAX BASE ARTICLE 334. PROCEDURE FOR DETERMINING THE VALUE OF CRUDE OIL, GAS CONDENSATE AND NATURAL GAS ARTICLE 335. PROCEDURE FOR CALCULATING TAX ARTICLE 336. RATES OF MINERALS EXTRACTION TAX
215 215 215 217 217 218
2. MINERALS EXTRACTION TAX FOR MINERAL STOCK, EXCEPT FOR COMMONLY OCCURRING MINERAL
RESOURCES ARTICLE 337. ARTICLE 338. ARTICLE 339.
OBJECT OF TAXATION TAX BASE RATES OF MINERALS EXTRACTION TAX
218 218 221 223 223 223 224 224 224 224 224
3. MINERALS EXTRACTION TAX FOR COMMONLY OCCURRING MINERAL RESOURCES, UNDERGROUND

WATER AND THERAPEUTIC MUD ARTICLE 340. ARTICLE 341. ARTICLE 342.
OBJECT OF TAXATION TAX BASE RATES OF MINERALS EXTRACTION TAX
4. TAX PERIOD, TAX DECLARATION AND PAYMENT DEADLINE

ARTICLE 343. TAX PERIOD ARTICLE 344. PAYMENT DEADLINE ARTICLE 345. TAX DECLARATION ARTICLE 346. PROCEDURE FOR PAYING MINERALS EXTRACTION TAX, RENT TAX ON THE EXPORT OF CRUDE OIL AND GAS CONDENSATE, ROYALTIES AND THE SHARE OF THE REPUBLIC OF KAZAKHSTAN IN PRODUCTION SHARING IN KIND
225 226 226 226 227 227 227 228 228 228 228 228 228 229 229 229 230 230 230 230 230 231 231 231 231 231 231 232 233 11
Chapter 46. Excess profits tax

PAYERS OBJECT OF TAXATION TAX BASE CALCULATION PROCEDURE RATES OF EXCESS PROFITS TAX TAX PERIOD TAX PAYMENT DEADLINE TAX DECLARATION
Section 12. Social tax Chapter 47. General provisions

ARTICLE 355. PAYERS ARTICLE 356. SPECIAL CONSIDERATIONS FOR PAYERS APPLYING SPECIAL TAX REGIMES TO CALCULATE AND PAY SOCIAL TAX AND FILE TAX REPORTING ARTICLE 357. OBJECT OF TAXATION ARTICLE 358. TAX RATES
Chapter 48. Procedure for calculating and paying tax

PROCEDURE FOR CALCULATING SOCIAL TAX PAYMENT OF SOCIAL TAX SPECIAL CONSIDERATIONS FOR STATE INSTITUTIONS TO CALCULATE SOCIAL TAX PROCEDURE FOR CALCULATING AND PAYING TAX FOR STRUCTURAL SUBDIVISIONS
Chapter 49. Tax period and tax declaration

ARTICLE 363. TAX PERIOD ARTICLE 364. INDIVIDUAL INCOME TAX AND SOCIAL TAX DECLARATION
Section 13. Tax on means of transport Chapter 50. General provisions

TAXPAYERS OBJECTS OF TAXATION
Chapter 51. Tax rates, procedure for calculating and paying tax
ARTICLE 367. ARTICLE 368. ARTICLE 369.
TAX RATES TAX CALCULATION PROCEDURE TAX PAYMENT DEADLINE
233 234 235 235 235 235 236 236 236 237 237 238 238 238 239 239 242 243 243 244 244 247 247 247 248 248 248 249 250 250 250 251 251 251 252 252 253 253 254 254 255 255 255 255 256 256 256 261 261 262 263 12

TAX PERIOD TAX REPORTING
Section 14. Land tax Chapter 53. General provisions

ARTICLE 372. ARTICLE 373. ARTICLE 374. ARTICLE 375. ARTICLE 376. ARTICLE 377.
GENERAL PROVISIONS PAYERS DEFINITION OF PAYER IN SPECIFIC CASES OBJECT OF TAXATION DEFINITION OF AN OBJECT OF TAXATION IN SPECIFIC CASES TAX BASE
Chapter 54. Tax rates

ARTICLE 378. BASE TAX RATES FOR AGRICULTURAL LAND ARTICLE 379. BASE TAX RATES FOR AGRICULTURAL LAND PROVIDED TO INDIVIDUALS ARTICLE 380. TAX RATES FOR NON-AGRICULTURAL LAND USED FOR AGRICULTURAL PURPOSES ARTICLE 381. BASE TAX RATES FOR LAND IN POPULATED AREAS (EXCEPT FOR LAND PLOTS ADJOINING DWELLINGS) ARTICLE 382. BASE TAX RATES FOR LAND PLOTS ADJOINING DWELLINGS ARTICLE 383. BASE TAX RATES FOR INDUSTRIAL LAND LOCATED OUTSIDE OF POPULATED AREAS ARTICLE 384. TAX RATES FOR INDUSTRIAL LAND IN POPULATED AREAS ARTICLE 385. TAX RATES FOR SPECIALLY PROTECTED NATURAL SITES, FORESTRY AND WATER RESERVE LAND ARTICLE 386. TAX RATES FOR LAND PLOTS OCCUPIED BY PARKING LOTS, FILLING STATIONS AND CASINOS ARTICLE 387. ADJUSTMENT TO BASE TAX RATES
Chapter 55. Procedure for calculating tax and the tax payment deadline
GENERAL PROCEDURE FOR CALCULATING AND PAYING TAX PROCEDURE FOR LEGAL ENTITIES TO CALCULATE TAX AND PAYMENT DEADLINE SPECIFIC DETAILS OF THE CALCULATION OF TAX IN SPECIFIC CASES PROCEDURE FOR INDIVIDUAL TO CALCULATE TAX AND THE TAX PAYMENT DEADLINE
Chapter 56. Tax period and tax reporting Section 15. Property tax Chapter 57. Tax on the property of legal entities and individual entrepreneurs
ARTICLE 394. ARTICLE 395. ARTICLE 396. ARTICLE 397. ARTICLE 398. ARTICLE 399. ARTICLE 400. ARTICLE 401. ARTICLE 402.
TAXPAYERS DEFINITION OF TAXPAYERS IN SPECIFIC CASES OBJECT OF TAXATION TAX BASE TAX RATES PROCEDURE FOR CALCULATING AND PAYING TAX CALCULATION AND PAYMENT OF TAX IN SPECIFIC CASES TAX PERIOD TAX REPORTING
Chapter 58. Tax on individuals property

TAXPAYERS DEFINITION OF A TAXPAYER IN SPECIFIC CASES OBJECT OF TAXATION TAX BASE CALCULATION AND PAYMENT OF TAX IN SPECIFIC CASES TAX RATES PROCEDURE FOR CALCULATING AND PAYING TAX TAX PERIOD
Section 16. Tax on the gaming business Chapter 59. Tax on the gaming business
263 263 263 263 263 264 264 264 264 265 265 265 265 265 265 266 266 266 266 267 267 267 267 267 268 268 268 269 269 270 270 270 271 271 272 272 272 272 272 273 273 274 274 275 275 276 276 276 13
PAYERS OBJECTS OF TAXATION TAX RATES TAX PERIOD PROCEDURE FOR CALCULATING AND DEADLINE FOR PAYING TAX ADDITIONAL PAYMENT OF PAYERS OF TAX ON THE GAMING BUSINESS PROCEDURE FOR CALCULATING AND MAKING ADDITIONAL PAYMENTS TAX DECLARATION FILING DEADLINE
Section 17. Fixed tax Chapter 60. Fixed tax

ARTICLE 419. MAIN TERMS USED IN THIS CHAPTER ARTICLE 420. PAYERS ARTICLE 421. OBJECT OF TAXATION FOR FIXED TAX ARTICLE 422. RATES OF FIXED TAX ARTICLE 423. TAX PERIOD ARTICLE 424. PROCEDURE FOR CALCULATING AND DEADLINE FOR PAYING FIXED TAX ARTICLE 425. TAX DECLARATION FILING DEADLINE
Section 18. Special tax regime

ARTICLE 426.
TYPES OF SPECIAL TAX REGIMES
Chapter 61. Special tax regime for small businesses 1. GENERAL PROVISIONS
GENERAL PROVISIONS CONDITIONS FOR APPLYING A SPECIAL TAX REGIME
2. PATENT SPECIAL TAX REGIME

GENERAL PROVISIONS TAX PERIOD CONDITIONS OF USE CALCULATION OF THE VALUE OF A PATENT
3. SIMPLIFIED DECLARATION SPECIAL TAX REGIME

ARTICLE 433. GENERAL PROVISIONS ARTICLE 434. TAX PERIOD ARTICLE 435. CONDITIONS OF USE ARTICLE 436. CALCULATION OF TAXES ACCORDING TO A SIMPLIFIED DECLARATION ARTICLE 437. DEADLINE FOR FILING A SIMPLIFIED DECLARATION AND PAYING TAXES ARTICLE 438. SPECIAL CONSIDERATIONS FOR THE PAYMENT OF SPECIFIC TAXES, OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS
Chapter 62. Special tax regime for farms and farm holdings
ARTICLE 439. GENERAL PROVISIONS ARTICLE 440. TAX PERIOD ARTICLE 441. CONDITIONS OF USE ARTICLE 442. SPECIAL CONSIDERATIONS OF THE APPLICATION OF THE SPECIAL TAX REGIME ARTICLE 443. OBJECT OF TAXATION ARTICLE 444. PROCEDURE FOR CALCULATING UNIFIED LAND TAX ARTICLE 445. SPECIAL CONSIDERATIONS OF THE CALCULATION OF SOCIAL TAX ARTICLE 446. DEADLINE FOR THE PAYMENT OF CERTAIN TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET, SOCIAL CONTRIBUTIONS AND THE TRANSFER OF OBLIGATORY PENSION CONTRIBUTIONS ARTICLE 447. DEADLINE FOR FILING TAX REPORTING FOR SPECIFIC TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET, SOCIAL CONTRIBUTIONS AND OTHER OBLIGATORY PENSION CONTRIBUTIONS
Chapter 63. Special tax regime for legal entity manufacturers of agricultural products and rural consumer cooperatives
ARTICLE 448. GENERAL PROVISIONS ARTICLE 449. TAX PERIOD ARTICLE 450. CONDITIONS OF USE ARTICLE 451. SPECIAL CONSIDERATIONS FOR THE CALCULATION OF SPECIFIC TAXES AND THE CHARGE FOR THE USE OF LAND PLOTS ARTICLE 452. DEADLINE FOR THE PAYMENT OF TAX AND FOR FILING TAX REPORTING
276 277 277 278 278 278 278 278 279 279 279 284 285 285 285 286 286 288 288 288 288 288 289 289 289 289 289 290 290 295 296 296 296 296 298 298 298 299 299 299 299 300 300 300 300 301 301 302 302 302 302 302 14
Section 19. Other obligatory payments Chapter 64. Registration fees

GENERAL PROVISIONS PAYERS OF FEES OBJECT OF TAXATION RATES OF FEES EXEMPTION FROM FEES CALCULATION AND PAYMENT PROCEDURE
Chapter 65. Fee for the passage of vehicles through the Republic of Kazakhstan
GENERAL PROVISIONS PAYERS OF THE FEE FEE RATES CALCULATION AND PAYMENT PROCEDURE
Chapter 66. Auction fee

GENERAL PROVISIONS PAYERS OF THE FEE OBJECTS OF TAXATION RATES OF THE FEE CALCULATION AND PAYMENT PROCEDURE TAX DECLARATION
Chapter 67. Licence fee for the right to perform certain activities
GENERAL PROVISIONS PAYERS OF THE FEE RATES OF THE FEE CALCULATION AND PAYMENT PROCEDURE
Chapter 68. Fee for a permit for television and radio broadcasting organisations to use the radio-frequency spectrum
GENERAL PROVISIONS PAYERS OF THE FEE RATES OF THE FEE CALCULATION AND PAYMENT PROCEDURE
Chapter 69. Charge for the use of land plots

GENERAL PROVISIONS PAYERS OF THE CHARGE OBJECT OF TAXATION CHARGE RATES CALCULATION AND PAYMENT PROCEDURE TAX PERIOD TAX REPORTING
Chapter 70. Charge for the use of surface water resources

ARTICLE 484. GENERAL PROVISIONS ARTICLE 485. PAYERS OF THE CHARGE ARTICLE 486. OBJECTS OF TAXATION ARTICLE 487. RATES OF THE CHARGE ARTICLE 488. CALCULATION AND PAYMENT PROCEDURE ARTICLE 489. SPECIFIC DETAILS OF THE CALCULATION AND PAYMENT OF THE CHARGE BY CERTAIN CATEGORIES OF TAXPAYERS ARTICLE 490. TAX PERIOD ARTICLE 491. TAX REPORTING
Chapter 71. Charge for environmental emissions

303 303 303 303 303 306 307 307 307 307 308 308 313 313 313 314 314 314 316 317 317 317 317 317 318 318 318 319 321 322 322 322 322 322 322 322 323 323 323 323 323 324 324 324 324 325 325 327 327 327 327 327 15
GENERAL PROVISIONS PAYERS OF THE CHARGE OBJECT OF TAXATION RATES OF THE CHARGE CALCULATION AND PAYMENT PROCEDURE TAX PERIOD TAX REPORTING
Chapter 72. Charge for the use of wildlife

GENERAL PROVISIONS PAYERS OF THE CHARGE RATES OF THE CHARGE CALCULATION AND PAYMENT PROCEDURE
Chapter 73. Charge for the use of the forest

GENERAL PROVISIONS PAYERS OF THE CHARGE OBJECTS OF TAXATION RATES OF THE CHARGE CALCULATION AND PAYMENT PROCEDURE
Chapter 74. Charge for the use of highly protected nature reserves
Chapter 75. Charge for the use of the radio-frequency spectrum

GENERAL PROVISIONS PAYERS OF THE CHARGE RATES OF THE CHARGE CALCULATION AND PAYMENT PROCEDURE TAX PERIOD TAX REPORTING
Chapter 76. Charge for the provision of long-distance and (or) international telephony, and cellular communication
GENERAL PROVISIONS PAYERS OF THE CHARGE RATES OF THE CHARGE CALCULATION AND PAYMENT PROCEDURE TAX PERIOD TAX REPORTING
Chapter 77. Charge for the use of navigable waterways

Chapter 78. Charge for the placement of outdoor (visual) advertising

Chapter 79. State duty 1. STATE DUTY

GENERAL PROVISIONS PAYERS OF STATE DUTY
ARTICLE 534. OBJECTS OF COLLECTION ARTICLE 535. STATE DUTY IN COURTS ARTICLE 536. RATES OF STATE DUTY FOR NOTARY ACTS ARTICLE 537. RATES OF STATE DUTY FOR THE REGISTRATION OF CIVIL ACTS ARTICLE 538. RATES OF STATE DUTY FOR DOCUMENTING DEPARTURE FROM THE REPUBLIC OF KAZAKHSTAN, THE ACQUISITION OF CITIZENSHIP OF THE REPUBLIC OF KAZAKHSTAN, THE RESTORATION OF CITIZENSHIP OF THE REPUBLIC OF KAZAKHSTAN OR THE TERMINATION OF CITIZENSHIP OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 539. RATES OF STATE DUTY TO COMMISSION LEGAL ACTS FROM THE AUTHORISED STATE BODY FOR INTELLECTUAL PROPERTY ARTICLE 540. RATES OF STATE DUTY FOR PERFORMING OTHER ACTS ARTICLE 541. EXEMPTIONS FROM THE PAYMENT OF STATE DUTY IN COURTS ARTICLE 542. EXEMPTION FROM STATE DUTY FOR NOTARY ACTS CONCLUDED ARTICLE 543. EXEMPTIONS FROM STATE DUTY WHEN REGISTERING CIVIL ACTS ARTICLE 544. EXEMPTIONS FROM STATE DUTY FOR THE RESTORATION AND ACQUISITION OF CITIZENSHIP OF THE REPUBLIC OF KAZAKHSTAN ARTICLE 545. EXEMPTION FROM STATE DUTY WHEN THE AUTHORISED STATE BODY FOR INTELLECTUAL PROPERTY EXECUTES LEGAL ACTS ARTICLE 546. EXEMPTION FROM STATE DUTY FOR THE PERFORMANCE OF OTHER ACTS ARTICLE 547. PROCEDURE FOR PAYING STATE DUTY ARTICLE 548. REFUND OF STATE DUTY
328 329 330 331
332 332 333 334 336 337 337 338 338 339 340 341 341 341 341 342 342 344 345 345 345 345 345 346 348 348 350 350 351 351 352 353 354 355 355 356 356 357 357 358 359 16
2. CONSULAR FEES
GENERAL PROVISIONS PAYERS OF THE CONSULAR FEE OBJECTS OF COLLECTION RATES OF THE CONSULAR FEE EXEMPTION FROM CONSULAR FEES PROCEDURE FOR PAYING CONSULAR FEES
3. Tax administration Section 20. Tax control and other forms of tax administration Chapter 80. Main provisions
TAX ADMINISTRATION TAX CONTROL TAX SECRET TAX INVESTIGATION PARTICIPATION OF WITNESSES INVESTIGATING A PARTICULAR ACTION
Chapter 81. Registration of taxpayers with the tax bodies

ARTICLE 560.
GENERAL PROVISIONS
1. REGISTRATION AS A TAXPAYER
ARTICLE 561. ENTRY OF INFORMATION ON INDIVIDUALS, LEGAL ENTITIES, THE STRUCTURAL SUBDIVISIONS OF LEGAL ENTITIES IN THE STATE DATABASE OF TAXPAYERS ARTICLE 562. SPECIAL CONSIDERATIONS OF THE REGISTRATION OF A NON-RESIDENT AS A TAXPAYER ARTICLE 563. AMENDMENTS AND ADDITIONS TO REGISTRATION DATA IN THE STATE DATABASE OF TAXPAYERS ARTICLE 564. REMOVAL OF A TAXPAYER FROM THE STATE DATABASE OF TAXPAYERS
2. RECORD OF REGISTRATION OF INDIVIDUAL ENTREPRENEURS, PRIVATE NOTARIES AND ADVOCATES

ARTICLE 565. RECORD OF REGISTRATION AS AN INDIVIDUAL ENTREPRENEUR, PRIVATE NOTARY OR ADVOCATE ARTICLE 566. CHANGE IN THE REGISTRATION DATA OF AN INDIVIDUAL ENTREPRENEUR, PRIVATE NOTARY OR ADVOCATE ARTICLE 567. DE-REGISTRATION AS AN INDIVIDUAL ENTREPRENEUR, PRIVATE NOTARY OR ADVOCATE
3. RECORD OF REGISTRATION OF PAYERS OF VALUE ADDED TAX

ARTICLE 568. ARTICLE 569. ARTICLE 570.
OBLIGATORY RECORD OF REGISTRATION FOR VALUE ADDED TAX VOLUNTARY RECORD OF REGISTRATION FOR VALUE ADDED TAX VALUE ADDED TAX REGISTRATION CERTIFICATE
ARTICLE 571.
DE-REGISTRATION FOR VALUE ADDED TAX PURPOSES
359 361 361 361 362 362 363 363 364 364 364 365 365 366 366 366 368 369 370 370 371 371 372 372 372 373 374 374 374 375 375 376 377 377 378 379 379 381 17
4. RECORD OF REGISTRATION AS AN ELECTRONIC TAXPAYER

RECORD OF REGISTRATION AS AN ELECTRONIC TAXPAYER REPLACEMENT AND CANCELLATION OF AN ELECTRONIC DIGITAL SIGNATURE
5. RECORD OF REGISTRATION OF TAXPAYER PERFORMING CERTAIN ACTIVITIES

ARTICLE 574. RECORD OF REGISTRATION AS A TAXPAYER PERFORMING CERTAIN ACTIVITIES ARTICLE 575. AMENDMENTS AND ADDITIONS TO THE REGISTRATION DATA OF TAXPAYERS PERFORMING CERTAIN ACTIVITIES ARTICLE 576. DE-REGISTRATION AS A TAXPAYER PERFORMING CERTAIN ACTIVITIES
6. RECORD OF REGISTRATION AT THE LOCATION OF THE OBJECTS OF TAXATION AND (OR) OBJECTS
RELATING TO TAXATION ARTICLE 577. RECORD OF REGISTRATION AT THE LOCATION OF OBJECTS OF TAXATION AND (OR) OBJECTS RELATING TO TAXATION ARTICLE 578. DE-REGISTRATION AT THE LOCATION OF OBJECTS OF TAXATION AND (OR) OBJECTS RELATING TO TAXATION
7. INACTIVE TAXPAYERS AND TAXPAYERS UNDERGOING LIQUIDATION

ARTICLE 579. INACTIVE TAXPAYERS ARTICLE 580. TAXPAYER UNDERGOING LIQUIDATION
8. OBLIGATIONS OF BANKS AND ORGANISATIONS PERFORMING CERTAIN BANKING OPERATIONS,

THE AUTHORISED STATE BODIES TO REGISTER AND MAKE A RECORD OF REGISTRATION OF TAXPAYERS ARTICLE 581. OBLIGATIONS OF BANKS OR ORGANISATIONS PERFORMING CERTAIN BANKING TRANSACTIONS ARTICLE 582. INTERACTION OF THE AUTHORISED STATE BODIES IN REGISTERING AND MAKING A RECORD OF REGISTRATION OF TAXPAYERS ARTICLE 583. OBLIGATIONS OF THE AUTHORISED STATE BODIES TO COOPERATE WITH THE BODIES OF THE TAX SERVICE
Chapter 82. Tax audits

ACCEPTANCE OF TAX FORMS CAMERAL REVIEW PROCEDURE AND DEADLINE FOR CONDUCTING A CAMERAL REVIEW RESULTS OF A CAMERAL REVIEW
Chapter 83. Record of the fulfilment of tax obligations, the obligation to transfer obligatory pension contributions and make social contributions
ARTICLE 588. GENERAL PROVISIONS ARTICLE 589. OPENING AND MAINTENANCE OF A TAXPAYERS (TAX AGENTS) PERSONAL ACCOUNT ARTICLE 590. RECORD OF CALCULATED AND REDUCED TAXES, OTHER OBLIGATORY PAYMENTS TO THE BUDGET, OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS ARTICLE 591. RECORD OF ACCRUED TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET, OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS ARTICLE 592. RECORD OF PAID, CREDITED AND REFUNDED TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET, OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS ARTICLE 593. RECORD OF LATE PAYMENT INTEREST AND FINES ARTICLE 594. RECONCILIATION OF PAYMENTS OF TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET, OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS ARTICLE 595. TRANSFER OF A TAXPAYERS (TAX AGENTS) PERSONAL ACCOUNT ARTICLE 596. CANCELLATION OF AN OBLIGATION TO PAY A FINE DUE TO THE EXPIRY OF THE STATUTE OF LIMITATION FOR EXECUTING A RESOLUTION ARTICLE 597. CLOSURE OF A TAXPAYERS (TAX AGENTS) PERSONAL ACCOUNT ARTICLE 598. PROCEDURE FOR PRESENTING INFORMATION ON THE ABSENCE AND (OR) EXISTENCE OF A TAX DEBT, OVERDUE OBLIGATORY PENSION CONTRIBUTIONS AND SOCIAL CONTRIBUTIONS
1. CREDIT AND REFUND OF TAXES, OTHER OBLIGATORY PAYMENTS TO THE BUDGET, LATE PAYMENT
INTEREST AND FINES ARTICLE 599. ARTICLE 600.
CREDIT OF EXCESS PAID TAX, CHARGES AND LATE PAYMENT INTEREST CREDIT OF VALUE ADDED TAX OFFSET THAT EXCEEDS ACCRUED TAX
ARTICLE 601. CREDIT AND REFUND OF INCORRECTLY PAID TAX AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET ARTICLE 602. REFUND OF EXCESS PAID TAX, CHARGES OR LATE PAYMENT INTEREST ARTICLE 603. REFUND OF OFFSET VALUE ADDED TAX THAT EXCEEDS ACCRUED TAX ARTICLE 604. REFUND OF VALUE ADDED TAX FOR OTHER REASONS ARTICLE 605. REFUND OF FINES PAID ARTICLE 606. REFUND OF OTHER OBLIGATORY PAYMENTS TO THE BUDGET MADE
382 383 383 384 384 385
Chapter 84. Notification of the fulfilment of a tax obligation, obligations to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions
385 385 386 386 386 387 388 389 390 391 391 392 393 394 394 394 394 395 395 395 395 396 397 397 397 398 398 398 401 401 401 402 404 405 406 407
GENERAL PROVISIONS PROCEDURE FOR SERVING AND EXECUTING NOTIFICATION
Chapter 85. Methods of ensuring the fulfilment of overdue tax obligations

ARTICLE 609. METHODS OF ENSURING THE FULFILMENT OF OVERDUE TAX OBLIGATIONS ARTICLE 610. LATE PAYMENT INTEREST FOR OVERDUE TAXES AND OTHER OBLIGATORY PAYMENTS TO THE BUDGET ARTICLE 611. SUSPENSION OF EXPENSE OPERATIONS ON A TAXPAYERS (TAX AGENTS) BANK ACCOUNTS ARTICLE 612. SUSPENSION OF EXPENSE OPERATIONS IN A TAXPAYERS (TAX AGENTS) CASH DEPARTMENT ARTICLE 613. RESTRICTION IN THE DISPOSAL OF A TAXPAYERS (TAX AGENTS) PROPERTY
Chapter 86. Measures for the forced recovery of a tax debt

ARTICLE 614. MEASURES FOR THE FORCED RECOVERY OF A TAX DEBT ARTICLE 615. RECOVERY OF A TAX DEBT FROM CASH IN BANK ACCOUNTS ARTICLE 616. RECOVERY OF A TAXPAYERS (TAX AGENTS) TAX DEBT FROM ITS DEBTORS ACCOUNTS ARTICLE 617. RECOVERY THROUGH THE REALISATION OF A TAXPAYERS (TAX AGENTS) RESTRICTED PROPERTY AGAINST A TAX DEBT ARTICLE 618. PROCEDURE FOR THE REALISATION OF A TAXPAYERS (TAX AGENTS) RESTRICTED PROPERTY AGAINST A TAX DEBT ARTICLE 619. COMPULSORY ISSUE OF THE DECLARED SHARES OF A TAXPAYER (TAX AGENT) JOINT STOCK COMPANY WITH STATE PARTICIPATION IN CHARTER CAPITAL ARTICLE 620. RECOGNITION OF A TAXPAYER (TAX AGENT) AS BANKRUPT ARTICLE 621. PUBLICATION OF LISTS OF TAXPAYERS (TAX AGENTS) WITH TAX DEBTS IN THE MASS MEDIA ARTICLE 622. RECOVERY OF THE TAX DEBT OF A TAXPAYER INDIVIDUAL WHO IS NOT AN INDIVIDUAL ENTREPRENEUR, PRIVATE NOTARY OR ADVOCATE
Chapter 87. Monitoring of major taxpayers

GENERAL PROVISIONS PROCEDURE AND DEADLINE FOR FILING MONITORING REPORTING
Chapter 88. Risk management system

GENERAL PROVISIONS ACTIONS OF THE BODIES OF THE TAX SERVICE IN ASSESSING AND MANAGING RISKS
Chapter 89. Tax audits 1. DEFINITIONS, TYPES AND FORMS OF TAX AUDITS
ARTICLE 627.
DEFINITIONS AND TYPES OF TAX AUDITS
2. PROCEDURE AND DEADLINE FOR CONDUCTING TAX AUDITS

ARTICLE 628. FREQUENCY OF TAX AUDITS ARTICLE 629. TIME FRAME FOR PERFORMING TAX AUDITS ARTICLE 630. SPECIAL CONSIDERATIONS FOR CONDUCTING EXTRAORDINARY DOCUMENTARY AUDITS ARTICLE 631. NOTICE OF TAX AUDIT ARTICLE 632. GROUNDS FOR CONDUCTING A TAX AUDIT ARTICLE 633. START OF A TAX AUDIT ARTICLE 634. SPECIAL CONSIDERATIONS OF CONDUCTING A CHRONOMETRIC INSPECTION ARTICLE 635. PROCEDURE FOR CONDUCTING TARGETED AUDITS BASED ON A TAXPAYERS REQUEST IN A VALUE ADDED TAX DECLARATION TO CONFIRM THE ACCURACY OF VALUE ADDED TAX CLAIMED FOR REFUND
408 18
ARTICLE 636. ACCESS OF THE OFFICIALS OF A BODY OF THE TAX SERVICE TO A PARTICULAR SITE OR PREMISES TO CONDUCT A TAX AUDIT ARTICLE 637. CONCLUSION OF A TAX AUDIT ARTICLE 638. DECISIONS ON TAX AUDIT RESULTS
410 411 412 414 414 414 414 415 416 416 416 417 418 419 419 420 421 423 424 424 424 425 425 426 428
3. IDENTIFICATION OF OBJECTS OF TAXATION AND (OR) OBJECTS RELATING TO TAXATION USING

THE INDIRECT METHOD ARTICLE 639. ARTICLE 640. ARTICLE 641. ARTICLE 642. TO TAXATION ARTICLE 643.
GENERAL PROVISIONS TAX AUDITS IN THE ABSENCE OF ACCOUNTING AND OTHER DOCUMENTS (INFORMATION) SOURCES OF INFORMATION PROCEDURE FOR DETERMINING OBJECTS OF TAXATION AND (OR) OBJECTS RELATING DETERMINING OBJECTS OF TAXATION IN SPECIFIC CASES
Chapter 9o. Procedure for the use of cash registers

ARTICLE 644. MAIN TERMS USED IN THIS CHAPTER ARTICLE 645. GENERAL PROVISIONS ARTICLE 646. REGISTRATION OF CASH REGISTERS WITH A TAX BODY ARTICLE 647. INTRODUCTION OF AMENDMENTS TO CASH REGISTER REGISTRATION DATA ARTICLE 648. DE-REGISTRATION OF CASH REGISTERS WITH A TAX BODY ARTICLE 649. DE-REGISTRATION OF A FISCAL REPORT AND REQUIREMENTS FOR THE CONTENT OF CONTROL RECEIPTS ARTICLE 650. OPERATION OF CASH REGISTERS ARTICLE 651. STATE REGISTER ARTICLE 652. TAX CONTROL OF COMPLIANCE WITH THE PROCEDURE FOR APPLYING CASH REGISTERS
Chapter 91. Other forms of tax control

ARTICLE 653. CONTROL OF EXCISABLE GOODS BY MARKING CERTAIN EXCISABLE GOODS AND ESTABLISHING EXCISE POSTS ARTICLE 654. TRANSFER PRICING CONTROL ARTICLE 655. MONITORING OF COMPLIANCE WITH THE PROCEDURE FOR RECORDING, STORING, VALUING, FURTHER USING AND REALISING PROPERTY APPROPRIATED BY THE STATE ARTICLE 656. MONITORING OF THE ACTIVITIES OF AUTHORISED STATE AND LOCAL EXECUTIVE BODIES
Chapter 92. Taxpayer assistance
ARTICLE 657. TAXPAYER ASSISTANCE 428 ARTICLE 658. PROMOTION OF TAX LEGISLATION 428 ARTICLE 659. PROVISION OF FREE SOFTWARE TO FILE ELECTRONIC TAX REPORTING 428 ARTICLE 660. DEVELOPMENT OF A NETWORK OF TERMINALS TO HELP TAXPAYERS REVIEW THE STATUS OF 428 REQUESTED DOCUMENTS ARTICLE 661. PROVISION OF INFORMATION ON THE PROCEDURE FOR MAKING BUDGET SETTLEMENTS TO FULFIL A TAX OBLIGATION 429 ARTICLE 662. CENTRES FOR WORKING WITH NOTIFICATIONS OF THE BODIES OF THE TAX SERVICE 429 ARTICLE 663. SUPPORT OF THE FUNCTIONING OF THE BODIES OF THE TAX SERVICES WEBSITES 429 ARTICLE 664. ASSISTANCE (EXCEPT FOR MATERIAL) IN THE DEVELOPMENT OF A NETWORK OF AUTOMATED TELLER MACHINES AND OTHER ELECTRONIC DEVICES TO PAY TAXES AND MAKE OTHER OBLIGATORY PAYMENTS TO THE BUDGET, SOCIAL CONTRIBUTIONS AND TRANSFER OBLIGATORY PENSION CONTRIBUTIONS 429 ARTICLE 665. PROCEDURE FOR THE BODIES OF THE TAX SERVICE TO DISTRIBUTE INFORMATION ON ASSISTANCE PROVIDED TO TAXPAYERS (TAX AGENTS) IN THEIR FULFIL OF TAX OBLIGATIONS 430
Section 21. Appeal against tax audit results and the actions (inaction) of officials of the bodies of the tax service Chapter 93. Procedure for appealing notifications of tax audit results
ARTICLE 666. BODIES REVIEWING TAXPAYER (TAX AGENT) APPEALS AGAINST NOTIFICATIONS OF TAX AUDIT RESULTS ARTICLE 667. PROCEDURE FOR A TAXPAYER (TAX AGENT) TO FILE AN APPEAL ARTICLE 668. FORM AND CONTENT OF A TAXPAYER (TAX AGENT) APPEAL ARTICLE 669. REFUSAL TO CONSIDER AN APPEAL ARTICLE 670. PROCEDURE FOR CONSIDERING AN APPEAL SENT TO A HIGHER BODY OF THE TAX SERVICE ARTICLE 671. DECISION ON THE CONSIDERATION OF AN APPEAL ARTICLE 672. SUSPENSION OF THE CONSIDERATION OF AN APPEAL ARTICLE 673. FORM AND CONTENT OF A DECISION OF A HIGHER BODY OF THE TAX SERVICE
430 430 430 430 431 431 432 432 433 433 19
CONSEQUENCES OF FILING AN APPEAL WITH A HIGHER BODY OF THE TAX SERVICE PROCEDURE FOR SCHEDULING AND CONDUCTING AN ADDITIONAL AUDIT
OR COURT
433 433 434 434 434 435 435 435 435 435 435 436 436 436 436 436 436
Chapter 94. Procedure for reconsidering a decision on the results of the consideration of a taxpayers (tax agents) appeal
ARTICLE 676. BODY RESPONSIBLE FOR RECONSIDERING A DECISION ON THE RESULTS OF THE CONSIDERATION OF A TAXPAYERS (TAX AGENTS) APPEAL ARTICLE 677. PROCEDURE FOR FILING AN APPEAL WITH THE AUTHORISED BODY ARTICLE 678. FORM AND CONTENT OF AN APPEAL SENT TO THE AUTHORISED BODY ARTICLE 679. REFUSAL TO CONSIDER AN APPEAL ARTICLE 680. PROCEDURE FOR CONSIDERING AN APPEAL SENT TO THE AUTHORISED BODY ARTICLE 681. ADOPTION OF A DECISION ON AN APPEAL SENT TO THE AUTHORISED BODY ARTICLE 682. SUSPENSION OF THE CONSIDERATION OF AN APPEAL ARTICLE 683. FORM AND CONTENT OF A DECISION OF THE AUTHORISED BODY ARTICLE 684. CONSEQUENCES OF FILING AN APPEAL WITH THE AUTHORISED BODY ARTICLE 685. PROCEDURE FOR SCHEDULING AND CONDUCTING AN ADDITIONAL AUDIT
Chapter 95. Procedure for appealing the actions (inaction) of officials of the bodies of the tax service
ARTICLE 686. RIGHT TO APPEAL ARTICLE 687. APPEAL PROCEDURE ARTICLE 688. LIABILITY OF THE OFFICIALS OF THE BODIES OF THE TAX SERVICE FOR VIOLATING TAX LEGISLATION
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1. General part
Section 1. General provisions Chapter 1. Main provisions
Article 1. Relations governed by this Code This Code shall govern all imperative relations with respect to the establishment and introduction of and the procedure for calculating and paying taxes, and for making other obligatory payments to the budget, as well as relations between the state and taxpayer (tax agent) in the fulfilment of tax obligations. Article 2. Tax Legislation of the Republic of Kazakhstan 1. Tax legislation of the Republic of Kazakhstan shall be based on the Constitution of the Republic of Kazakhstan, consist of this Code and normative legal acts adopted according to this Code. No person shall be obligated to pay taxes or make any other obligatory payments to the budget not stipulated by this Code. Taxes and other obligatory payments to the budget shall be established, introduced, amended or abolished in accordance with the procedure and conditions set forth by this Code. The provisions of this Code shall apply when tax-related discrepancies arise between this Code and any other legislative acts of the Republic of Kazakhstan. The inclusion of any provisions governing tax issues in non tax-related legislation shall be prohibited, except where stipulated by this Code. If an international agreement ratified by the Republic of Kazakhstan establishes rules other than those contained in this Code, the rules of the said agreement shall apply.
2.
3.
4.
5.
Article 3. Force of Tax Legislation of the Republic of Kazakhstan 1. Tax legislation of the Republic of Kazakhstan shall be valid throughout the Republic of Kazakhstan and apply to individuals, legal entities and their structural subdivisions. Legislative acts of the Republic of Kazakhstan that introduce amendments and additions to this Code, except for amendments and additions to tax administration, the special considerations for establishing tax reporting, and also improving the status of taxpayers (tax agents), may be adopted no later than 1 November of the current year and introduced into force no earlier than 1 January of the year following that in which they were adopted.
2.
Article 4. Principles of Taxation in the Republic of Kazakhstan 1. Tax legislation of the Republic of Kazakhstan shall be based on the principles of taxation, which include the principles of obligation, determinacy and fairness of taxation; the uniformity of the tax system and the transparency of tax legislation. The provisions of tax legislation of the Republic of Kazakhstan may not contradict the principles of taxation established in this Code.
2.
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Article 5. Principle of the Obligatory Nature of Taxation A taxpayer shall be obligated to fulfil its tax obligation, while a tax agent shall be obligated to calculate, withhold and transfer taxes in accordance with tax legislation of the Republic of Kazakhstan in full and within the established deadlines. Article 6. Principle of the Determinacy of Taxation Taxes and other obligatory payments to the budget of the Republic of Kazakhstan should be determinable. Determinacy of taxation means creating all the fundamentals and a procedure in tax legislation of the Republic of Kazakhstan for a taxpayer to create, fulfil and terminate a tax obligation, and for a tax agent to calculate, withhold and transfer taxes. Article 7. Principle of the Fairness of Taxation 1. 2. Taxation in the Republic of Kazakhstan shall be applicable to all and considered obligatory. Tax concessions of an individual nature shall not be granted.
Article 8. Principle of Uniformity of the Tax System The tax system of the Republic of Kazakhstan shall be uniform throughout the Republic of Kazakhstan for all taxpayers (tax agents). Article 9. Principle of Transparency of Tax Legislation of the Republic of Kazakhstan Normative legal acts governing tax issues should be published in official publications. Article 10. Tax Policy Tax policy shall be a set of measures to establish new and abolish current taxes and other obligatory payments to the budget; amend rates, objects of taxation and objects relating to taxation, tax bases for taxes and other obligatory payments to the budget to ensure the state maintains a balance between its and taxpayers economic interests. Article 11. Tax Advisory Committee 1. The Government of the Republic of Kazakhstan shall be entitled to create a tax advisory committee responsible for developing proposals to correct any ambiguity, inaccuracies and contradictions arising in the fulfilment of tax obligations, and also to prevent possible tax evasion. The Government of the Republic of Kazakhstan shall be responsible for approving membership to and regulations on the tax advisory committee.
2.
Article 12. Basic Terms applied in this Code 1. 1) The following terms shall be used in this Code for taxation purposes: data processing services services to collect, compile and systemise data, and provide users with data processing results; special tax regime a special budget settlement procedure established for specific categories of taxpayers which envisages a simplified procedure for calculating and paying certain taxes and charges for the use of land plots, and also for filing tax reporting; securities shares, debt securities, depositary receipts or units in mutual investment funds;
2)
3)
22
4)
other obligatory payments obligatory monetary payments to the budget (charges, fees, duties, except for customs payments) made in set amounts for authorised state bodies to conclude legal acts, to obtain the right to use state-owned objects, and to obtain permits to operate in accordance with legislation of the Republic of Kazakhstan; arrears taxes and other obligatory payments to the budget that have been calculated, accrued but not paid within the deadline, except for those amounts recorded in a disputed part of a notification of tax audit results during the appeal period in accordance with the procedure established by legislation of the Republic of Kazakhstan; debt securities state securities, bonds and other securities recognised as debt securities in accordance with legislation of the Republic of Kazakhstan; debt security discount difference between the nominal value and initial investment value (without coupon) or purchase cost (without coupon) of debt securities; debt securities coupon (hereafter coupon) an amount payable (subject to payment) by an issuer in excess of the nominal value of debt securities in accordance with issue conditions; debt securities premium difference between the initial investment cost (without coupon) or purchase cost (without coupon) and the nominal value of debt securities issued under conditions stipulating the payment of a coupon;
5)
6)
7)
8)
9)
10) market rate of currency exchange - the weighted average tenge exchange rate to foreign currencies at a main session of a stock exchange operating in the Republic of Kazakhstan, and determined in accordance with the procedure established by the National Bank of the Republic of Kazakhstan together with the authorised state body responsible for regulating accounting and financial statements. The tenge rate of exchange to foreign currencies not traded on an exchange operating in the Republic of Kazakhstan shall be calculated using cross rates in accordance with the procedure established by the National Bank of the Republic of Kazakhstan together with the authorised state body responsible for regulating accounting and financial statements; 11) grant property provided free of charge to achieve specific aims (objectives) by: countries and governments of countries to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals and legal entities; international and state organisations, foreign non-governmental public organisations and funds performing charity and international activities that do not contradict the Constitution of the Republic of Kazakhstan, and which are included in a list drawn up by the Government of the Republic of Kazakhstan at the request of state bodies - to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals and legal entities; foreign nationals and stateless individuals - to the Republic of Kazakhstan or the Government of the Republic of Kazakhstan; 12) humanitarian aid property provided free of charge to the Republic of Kazakhstan in the form of food, consumer goods, apparatus, machinery, equipment, medical equipment and medicines, and other items sent by foreign countries or international organisations to improve the lives or living conditions of the population, but also intended to prevent or respond to military, ecological, natural or technogenic emergencies, and which is then distributed by the Government of the Republic of Kazakhstan through authorised organisations; 13) sponsorship aid property provided free of charge to assist the distribution of information on the person providing the aid to: individuals in the form of financial (except for social) support to participate in competitions, contests, exhibitions, reviews and to develop creative, scientific, research technology, and inventive activity that raises levels of education and sporting excellence; non-commercial organisations to implement their charter objectives; 23
14) dividends income payable on shares, including on shares that are the underlying assets of depositary receipts; income payable on the units of a mutual investment fund, except for income on units that have been bought back by the funds managing company; the part of net income distributed by a legal entity among its participants or founders; income allocated from property after a legal entity has been liquidated, and also when founders and participants withdraw their participation interest in a legal entity, except property that founders or participants have contributed to charter capital; income received by shareholders, founders or participants or their related parties from a legal entity, in the form of: a positive difference between the realisation value of goods, work or services realised to an independent party, and the realisation value to shareholders, participants or founders or their related party; a negative difference between the purchase value of goods, work or services from an independent party and their purchase value from shareholders, participants or founders, or their related party; a legal entitys non-business expenses or liabilities that are incurred by its shareholders, participants or founders or related party from a third party, which the legal entity repays without a reimbursement from shareholders, founders or participants or their related parties; any property and material benefit provided by a legal entity to its shareholders, participants or founders or their related parties, except for income listed in articles 163-165 of this Code, and income from the sale of goods, work and services. The positive or negative differences referred to in this subpoint are identified once objects of taxation have been adjusted, and in those cases and in accordance with the procedure established by transfer pricing legislation of the Republic of Kazakhstan; 15) designer services services to design art forms, product appearance, building facades, interiors; industrial design; 16) fictitious company a private business whose creation and (or) management have been recognised by a valid court order or resolution as fictitious according to legislation of the Republic of Kazakhstan; 17) personal property of an individual an individuals property in a material form that the individual either has ownership rights to, or which is the individuals share in common property and which is not intended to be used for business purposes; 18) subsoil users individuals or legal entities who have the right to perform subsoil use operations, including petroleum operations, in the Republic of Kazakhstan in accordance with legislative acts of the Republic of Kazakhstan; 19) structural subdivision of a legal entity a branch or representative office; 20) engineering services engineering and advisory services; research, planning and construction, calculation and analytical work; technical and economic project evaluation work; creation of production and management organisation recommendations; product realisation; 21) contractual activities a subsoil users activities performed in accordance with the provisions of a subsoil use contract; 22) non-contractual activities any other subsoil user activities that are not directly stipulated by the provisions of a subsoil use contract; 23) advisory services services to provide clarifications, recommendations, advice or other forms of consultation, including to determine and (or) assess a persons problems and (or) potential; resolve management, economic, financial and investment issues, including strategic planning, business organisation and performance; human resource management; 24) charity property provided free of charge to: 24
individuals to provide them with social support; non-commercial organisations to support their charter activities; organisations operating in the social sphere to help them perform the activities listed in point 2 of article 135 of this Code; organisations operating in the social sphere to meet the conditions listed in point 3 of article 135 of this Code; 25) participation interest an individuals and (or) legal entitys share in joint business activities, except for joint stock companies and mutual investment funds; 26) employee an individual having an employment relationship with an employer and working directly under an employment agreement (contract); a state employee,; member of the board of directors of a joint stock company, except for state employees; foreign nationals or stateless individuals hired to work under a secondment contract by a non-resident whose activities do not create a permanent establishment in accordance with the provisions of point 10 of article 191 of this Code; to a resident or other non-resident operating in the Republic of Kazakhstan through a permanent establishment; 27) marketing services services to research, analyse, plan and forecast the production and circulation of goods, work and services so as to create the best economic conditions for producing and circulating goods, work and services, including descriptions of goods, work and services; develop pricing and advertising strategies; 28) related party an individual or legal entity whose association is determined in accordance with transfer pricing legislation of the Republic of Kazakhstan; 29) realisation the shipment of goods, performance of work and provision of services for a sale, exchange or transfer free of charge, as well as the transfer of mortgaged assets to the mortgagee; 30) royalties payments for: the subsoil use right to extract mineral resources and process technogenic formations; the use or the right to use copyright, software, patents, designs or models, trademarks or other similar rights; the use or the right to use industrial equipment, including marine- and aircraft leased under bareboat charters or demise charters; commercial or scientific research equipment; the use of know how; the use or the right to use cinema films, video films, audio or other recordings; 31) tax agent a person that has, in accordance with this Code, the responsibility of calculating, withholding, and transferring taxes withheld at the source of payment; 32) tax debt a sum of arrears, unpaid late payment interest and fines. A tax debt shall not include any late payment interest recorded in a disputed part of a notification of tax audit results or fines recorded in a resolution on administrative sanctions during the dispute period, in accordance with the procedure established by legislation of the Republic of Kazakhstan; 33) tax regime the body of provisions of tax legislation of the Republic of Kazakhstan used by a taxpayer to calculate tax obligations to pay taxes and make other obligatory payments to the budget as established by this Code; 34) taxes determinable, irrevocable and non-compensatory obligatory monetary payments to the budget established unilaterally by the state through legislation, except for those cases stipulated by this Code; 35) taxpayer a person that is a payer of taxes and other obligatory payments to the budget;
25
36) taxpayer (tax agent) personal account documents, including electronic documents, used to record taxes and other obligatory payments to the budget, obligatory pension contributions, social contributions, and late payment interest and fines that have been calculated, accrued (reduced), transferred and paid (inclusive of those offset and returned); 37) electronic taxpayer document an electronic document transmitted in the prescribed electronic format, and certified with a taxpayers electronic digital signature once it has been received and its authenticity confirmed; 38) taxpayer electronic digital signature - a sequence of electronic digital symbols generated by an electronic digital signature that verifies the authenticity of an electronic document, its relationship to a taxpayer and the accuracy of its content; 39) interest all payments associated with: credit (loans, micro-credit), except for credit (loans, micro-credit) received (issued), bank commission from money transfers and other payments to a person that is not a lender or related party for the borrower; the lease of property, except for the value at which the property is received (transferred), payments to a person that is not a lessor or related party for the lessee; deposits, except for deposits and payments to a person that is not a depositor or related party for the party receiving the deposit; an investment insurance agreement, except for the insured sum or payments to a person that is not an insurer or related party for the policy holder; debt securities in the form of a discount or coupon (including a discount from the initial placement value and (or) purchase value), payments to a person that is the holder of its debt securities or related party for the person paying interest; bills of exchange, except for the amount referred to in the bill, payments to a person that is not a holder of its bills or a related party for the drawer; repo operations in the form of a positive difference between the closing price and opening price; 40) derivative an agreement the cost of which depends on the value (including variations in value) of the underlying asset, and which stipulates payment of the agreement in the future. Derivatives include options, futures, forwards, swaps and other derivatives, as well as combinations of the above. Underlying assets of derivatives include goods, standardised lots of goods, securities, currency, indices, interest rates and other assets with a market value; a future event or circumstance, or other derivatives; 41) person an individual or legal entity; citizen of the Republic of Kazakhstan, foreign national, stateless individual; a legal entity organisation created in accordance with legislation of the Republic of Kazakhstan or other country (non-resident legal entity). For the purposes of this Code, a company, organisation or other corporate formation created in accordance with legislation of a foreign country shall be treated as an independent legal entity, irrespective of whether they are recognised as a legal entity in their country of creation; 42) authorised state bodies state bodies of the Republic of Kazakhstan, except for the tax bodies and local executive bodies, which are authorised by the Government of the Republic of Kazakhstan to calculate and (or) collect other obligatory payments to the budget, and also to interact with bodies of the tax service in accordance with this Code, within the framework of authority established by laws of the Republic of Kazakhstan; 43) authorised body the state body responsible for managing the receipt of taxes and other obligatory payments to the budget; 26
44) winnings any form of income in kind or in monetary terms earned by taxpayers from competitions, contests (Olympiads), festivals, lotteries, draws, including draws on deposits and debt securities, and also income in the form of material benefits received in a game of chance and (or) wagers; 45) electronic taxpayer a taxpayer interacting with the bodies of the tax service electronically based on an agreement concluded with the bodies of the tax service to use and recognise an electronic digital signature in the exchange of electronic documents in accordance with the procedure established by this Code. 2. Other special terms and definitions in tax legislation of the Republic of Kazakhstan shall be given the arithmetic meanings defined in the context of the relevant articles of this Code. Terminology taken from civil legislation or from any other area of legislation of the Republic of Kazakhstan, shall, for the purposes of this Code, be used in an identical manner to that in which it is used in the areas of legislation to which it relates, unless otherwise stated by this Code.
3.
Chapter 2. Taxpayer and tax agent rights and obligations. Representation in tax relations
Article 13. Taxpayer Rights 1. A taxpayer shall be entitled to: 1) receive information from the bodies of the tax service on current taxes and other obligatory payments to the budget, on amendments to tax legislation of the Republic of Kazakhstan, and explanations on how to complete tax forms; present their interests in relations governed by tax legislation of the Republic of Kazakhstan either personally or through a representative, or with the participation of a tax consultant; receive the results of tax control in those cases established by this Code; receive free of charge an approved level of service from the tax bodies, tax declaration forms and (or) software required to file tax reporting and electronic declarations; receive copies of filed tax reporting from the tax bodies; provide the bodies of the tax service with explanations on how taxes and other obligatory payments were calculated and paid to the budget after tax control has been completed; within two working days of the tax bodies receiving a tax application, receive a personal account statement on the status of budget payments with respect to tax obligations, and also obligations to calculate, withhold and transfer obligatory pension contributions, calculate and make social contributions; according to a tax application, receive the following certificates in accordance with the procedure and within the deadline set by this Code, on: no outstanding tax liability, overdue obligatory pension contributions and social contributions; (no) outstanding tax liability, overdue obligatory pension contributions and social contributions; income received by a non-resident from sources in the Republic of Kazakhstan, and taxes withheld (paid); 9) receive information required to complete payment orders to pay taxes and make other obligatory payments to the budget, as well as information on the procedure for paying taxes and making other obligatory payments to the budget, within one working day of applying to the tax bodies for the information in question; 27
2)
3) 4)
5) 6)
7)
8)
10) appeal, in accordance with the procedure established by this Code and other legislative acts of the Republic of Kazakhstan, against notifications of tax audit results and (or) a decision of a higher body of the tax service made after considering an appeal against a notification, as well as the actions (inaction) of officials of the bodies of the tax service; 11) demand that tax confidentiality be observed; 12) receive state services provided by the bodies of the tax services in accordance with this Code, free of charge; 13) record in writing any issues an official of the bodies of the tax service may raise during a tax audit, and approve the related document with the official; 14) not provide any information or documents not related to objects of taxation and (or) objects relating to taxation, except for information and documents whose provision is directly stipulated by tax legislation of the Republic of Kazakhstan, transfer pricing legislation of the Republic of Kazakhstan, and also legislation of the Republic of Kazakhstan on the state regulation of the production and circulation of specific excisable goods. 2. A taxpayer shall be entitled to participate electronically in relations governed by tax legislation of the Republic of Kazakhstan, in accordance with the procedure established by this Code. A taxpayer shall have other rights as stipulated by tax legislation of the Republic of Kazakhstan.
3.
Article 14. Taxpayer Obligations 1. A taxpayer shall be obliged to: 1) 2) fulfil a tax obligation in full, on time and in accordance with this Code; meet the legal requirements of officials of the bodies of the tax service to correct any breaches of tax legislation of the Republic of Kazakhstan discovered, and not to obstruct their official duties; permit officials of the bodies of the tax service, on the basis of an instruction, to investigate property considered an object of taxation and (or) object relating to taxation; provide information and documents stipulated by transfer pricing legislation of the Republic of Kazakhstan; use cash registers and observe the procedure for using them as set by this Code; file a tax application with a tax body to conduct a documentary audit when individual entrepreneurs (except for those cases established by article 43 of this Code), private notaries, advocates, permanent establishments and non-resident legal entities cease business activities; when a legal entity is reorganised through division and (or) liquidation.
3)
4)
5) 6)
2.
A taxpayer shall fulfil other obligations stipulated by this Code.
Article 15. Tax Agent Rights and Obligations 1. Tax agents shall have the same rights and obligations as taxpayers, unless otherwise stipulated by this Code. Tax agents shall likewise be required to: 1) calculate taxes withheld at the source of payment, accurately and on time, in accordance with the special part of this Code; withhold the appropriate taxes from a taxpayer and transfer them to the budget in accordance with the procedure and within the deadlines established by this Code; 28
2.
2)
3)
keep a record of income paid to taxpayers as well as taxes withheld and transferred to the budget, for each taxpayer separately; file tax reporting with the tax body where a record of registration has been made in accordance with the procedure established by the special part of this Code.
4)
3.
A tax agent shall fulfil other obligations stipulated by this Code.
Article 16. Guarantee and Protection of Taxpayer (Tax Agent) Rights 1. 2. Taxpayers (tax agents) shall be guaranteed the protection of their rights and legal interests. The rights and legal interests of a taxpayer (tax agent) shall be protected in accordance with the procedure stipulated by this Code and other legislative acts of the Republic of Kazakhstan.
Article 17. Representation in Tax Relations governed by this Code 1. A taxpayer (tax agent) may be a party to relations governed by tax legislation of the Republic of Kazakhstan, through a legal or authorised representative. A taxpayers (tax agents) legal representative shall be recognised as a person authorised to represent the taxpayer (tax agent) in accordance with legislative acts of the Republic of Kazakhstan. Individuals or legal entities authorised to represent a taxpayers (tax agents) interests in relations with the bodies of the tax service and other parties to relations governed by tax legislation of the Republic of Kazakhstan shall be regarded as the taxpayers (tax agents) authorised representatives. Authorised representatives shall act on the basis of a taxpayers (tax agents) foundation documents and (or) notarised power of advocate, or power of advocate equivalent to a notarised power of advocate, which should clearly indicate the representatives range of power, issued by the taxpayer (tax agent) in accordance with civil legislation of the Republic of Kazakhstan. 4. Taxpayers (tax agents) personal participation in relations regulated by tax legislation of the Republic of Kazakhstan shall not deprive them of the right to be represented, while a participation of a representative should not deprive a taxpayer (tax agent) of the right to participate personally in the relations in question. Any actions (or inaction) of a taxpayers (tax agents) representative with regard to a taxpayers (tax agents) participation in relations governed by tax legislation of the Republic of Kazakhstan shall be regarded as the taxpayers (tax agents) actions (inaction) to the extent of granted to the representative in question, based on the documents referred to in point 3 of this article.
2.
3.
5.
Chapter 3. Bodies of the tax service. Customs bodies. Interaction of the bodies of the tax service with other state bodies
Article 18. Role and Structure of the Bodies of the Tax Service 1. The role of the bodies of the tax service shall be to: 1) 2) ensure taxes and other obligatory payments to the budget are received in full and on time; ensure that obligatory pension contributions to pension savings funds (hereafter obligatory pension contributions) and social contributions to the State Social Insurance Fund (hereafter social contributions) are calculated, withheld and transferred in full and on time; participate in the realisation of tax policy of the Republic of Kazakhstan;
3)
29
4) 5) 2. 3.
guarantee the economic security of the Republic of Kazakhstan to the extent of its competence; ensure compliance with tax legislation of the Republic of Kazakhstan.
The bodies of the tax service shall consist of the authorised body and tax bodies. The tax bodies shall be made up of regional units of the authorised body for the oblasts, the cities of Almaty and Astana, the districts, cities and municipal districts, and inter-regional units of the authorised body. Tax bodies may be created to administer special economic zones. The tax bodies shall report directly to the next-highest body of the tax service and not be regarded as local executive authorities. The authorised body shall be responsible for managing the tax bodies.
4.
5.
Article 19. Rights of the Bodies of the Tax Service 1. The bodies of the tax service shall be entitled to: 1) 2) 3) 4) develop and approve the normative legal acts stipulated by this Code; exercise tax control; ensure international cooperation on taxation issues; demand that taxpayers (tax agents) grant access to review software data and (or) information systems containing primary accounting data, accounting registers, information on objects of taxation and (or) objects relating to taxation if the taxpayer (tax agent) uses software and (or) information systems, except for access to review software data and (or) information systems in banks and other organisations performing certain banking operations containing data on clients bank accounts that is considered a banking secret in accordance with legislative acts of the Republic of Kazakhstan; request that taxpayers (tax agents) file documents confirming that taxes and other obligatory payments to the budget have been calculated and paid (withheld and transferred) in full and correctly; that obligatory pension contributions have been calculated, withheld and transferred in full and on time; that social contributions have been calculated and paid in full and on time; provide written explanations on tax forms completed by taxpayers (tax agents), and also financial reporting, including consolidated financial reporting for resident taxpayers (tax agents), subsidiaries outside of the Republic of Kazakhstan, together with audit opinions if legislative acts of the Republic of Kazakhstan prescribe an obligatory audit for such persons; seize documents from taxpayers (tax agents) during tax audits, in accordance with the procedure determined by the Code of the Republic of Kazakhstan On Administrative Violations, that prove an administrative violation has been committed; based on an order, inspect any property recognised as an object of taxation and (or) object relating to taxation, regardless of where they are located, and carry out a stock take of a taxpayers (tax agents) property (excluding residential premises); receive from banks or organisations performing certain banking operations information that should be provided as stipulated by subpoints 1) and 4) of article 581 of this Code; receive information from banks or organisations performing certain banking operations on bank accounts and bank account numbers, on balances and the movement of money on these accounts in observance of the requirements established by legislative acts of the Republic of Kazakhstan to disclose information considered a commercial, banking or other secret protected by law, in relation to the persons referred to in subpoint 12) of article 581 of this Code;
5)
6)
7)
8)
9)
10) determine objects of taxation and (or) objects relating to taxation using an indirect method, in accordance with the procedure established by this Code;
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11) engage specialists to work on tax audits; 12) file a writ with a court in accordance with legislation of the Republic of Kazakhstan, including to liquidate a legal entity on the grounds stipulated in subpoints 1), 2) and 4) of point 2 of article 49 of the Civil Code of the Republic of Kazakhstan. 2. The bodies of the tax service shall be entitled to perform duties required by legislative acts of the Republic of Kazakhstan electronically in accordance with the procedure established by this Code. The bodies of the tax service shall have other rights as provided by this Code, legislative acts of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
3.
Article 20. Obligations of the Bodies of the Tax Service 1. The bodies of the tax service shall be obliged to: 1) 2) 3) observe taxpayers (tax agents) rights; protect state interests; monitor whether a taxpayer fulfils its tax obligation, a tax agent calculates, withholds and transfers taxes in accordance with the procedure established by this Code, calculates and makes social contributions in full and one time; and calculates, withholds and transfers obligatory pension contributions on time; keep records of taxpayers, objects of taxation and (or) objects relating to taxation; record calculated, accrued and paid taxes and other obligatory payments to the budget; calculated, withheld and transferred obligatory pension contributions; calculated and paid social contributions; to the extent of their competence, clarify and comment on the creation, fulfilment and termination of a tax obligation; provide taxpayers (tax agents) with information on valid taxes and other obligatory payments to the budget, on changes to tax legislation of the Republic of Kazakhstan; and explain the procedure for completing tax forms; provide taxpayers (tax agents) with a level of service approved by the authorised body, free of charge, as well as standard tax application forms and (or) software required to file tax reporting and applications electronically; conduct tax audits in strict accordance with instructions; to the extent of their competence, credit and (or) refund overpaid taxes, other obligatory payments and late payment interest paid to the budget; value added tax offset in excess of accrued tax; refund fines in accordance with the procedure and deadline established by this Code;
4)
5)
6)
7)
8) 9)
10) observe tax confidentiality in accordance with the provisions of this Code; 11) serve a taxpayer (tax agent) with notification to fulfil a tax obligation, obligations to withhold and transfer obligatory pension contributions and make social contributions within the deadline and in those cases stipulated by this Code; 12) pursuant to a taxpayers (tax agents) application, provide the following certificates in accordance with the procedure and within the deadline established by this Code: on no outstanding tax liability, overdue obligatory pension contributions and social contributions; on (no) outstanding tax liability, overdue obligatory pension contributions and social contributions; 31
on income received by a non-resident from sources in the Republic of Kazakhstan, and taxes withheld (paid); 13) accept tax reporting and tax applications in accordance with the procedure established by this Code; 14) require that taxpayers (tax agents) rectify breaches of tax legislation of the Republic of Kazakhstan and monitor the execution of these requirements to the extent of their competency; 15) within two working days of receiving a taxpayer (tax agent) tax application, provide a personal account statement on the status of budget settlements, as well as obligations to transfer obligatory pension contributions and make social contributions; 16) to the extent of its competence, provide a taxpayer (tax agent) with the information it needs to complete payment orders to pay taxes, other obligatory payments to the budget, late payment interest and fines; information on the procedure for paying taxes, other obligatory payments to the budget, late payment interest and fines, social contributions and transferring obligatory pension contributions, within one working day of an application being made to the tax bodies for the information in question; 17) ensure the safekeeping of originals or copies of documents confirming payment of taxes and other obligatory payments to the budget for five years; 18) provide access to the information system of the bodies of the tax service to the state body for financial monitoring in accordance with legislation of the Republic of Kazakhstan; 19) provide access to electronic taxpayers to review their personal accounts; 20) at a taxpayers request reconcile tax, pension contribution and social contribution payments; a tax agents obligation to calculate and transfer taxes; and make adjustments to personal accounts in accordance with the procedure stipulated by this Code; 21) provide state services in accordance with standards and instructions for providing state services approved by the authorised body; 22) in accordance with the procedure and in those cases established by this Code, publish in the mass media lists of taxpayers (tax agents) with overdue taxes; as well as of inactive legal entities and taxpayers recognised as fictitious companies on the basis of a valid court verdict or decision; 23) monitor compliance with the procedure for recording, storing, assessing, further using and realising property appropriated by the state, for transferring it in full and on time to the relevant authorised state body in accordance with legislation of the Republic of Kazakhstan, and ensure that any proceeds from its realisation are transferred to the budget on time and in full; 24) monitor the activities of the authorised state bodies and local executive bodies responsible for the accurate calculation, full collection and timely transfer of taxes and other obligatory payments to the budget; 25) apply methods to guarantee the fulfilment of tax obligations, and enforce the compulsory recovery of a taxpayers tax debts in accordance with this Code; 26) consider a taxpayers (tax agents) appeal against notification of tax audit results and (or) a decision of a higher-level body of the tax service issued after an appeal has been considered, and also the actions (inaction) of officials of the bodies of the tax service, in accordance with the procedure and within the deadline established by this Code; 27) impose administrative accountability in accordance with the Code of the Republic of Kazakhstan On Administrative Violations. 2. If a tax audit reveals a deliberate attempt to evade taxes or other obligatory payments to the budget, or where a criminal act is suggested through an intentional and false declaration of 32
bankruptcy, the bodies of the tax service shall send the relevant materials to the appropriate law enforcement agency for a judicial verdict in accordance with legislative acts of the Republic of Kazakhstan. 3. The bodies of the tax service shall fulfil other additional obligations as stipulated by tax legislation of the Republic of Kazakhstan.
Article 21. Conflict of Interest Officials of the bodies of the tax service shall be forbidden from carrying out their professional duties with respect to a taxpayer (tax agent) where the taxpayer (tax agent) is a close relative (parent; child; foster parent; adopted child; full- or half-brother or sister; grandparent or grandchild) or a relative by marriage (brother, sister, parent and child of a spouse), or if a taxpayer and official are linked by a direct or indirect financial interest. Article 22. Authority of the Customs bodies to collect Taxes The customs bodies shall collect taxes and other obligatory payments to the budget due in accordance with this Code and customs legislation of the Republic of Kazakhstan on goods transported across the customs border of the Republic of Kazakhstan. Article 23. Authority of Local Executive Bodies 1. Village, aul and aul (rural) district akims (hereafter - akims) shall collect taxes on property and means of transport, and land payable by individual taxpayers. The taxes referred to in point 1 of this article shall be collected on the basis of a pre-numbered form. The format of receipts shall be established by the authorised body. When collecting the taxes referred to in point 1 of this article, akims shall ensure that: 1) individual taxpayers receive notification on an amount of tax due within five working days from the day notification was received from the tax bodies; an individual taxpayer receives a receipt confirming payment of taxes in cash; taxes are deposited in a bank or organisation performing certain banking operations every day, no later than the banking day following the day when money was received, for subsequent credit to the budget. If in populated areas the value of daily receipts is less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, and if no bank or organisation performing certain banking operations exists in the area, money shall be deposited once every three days; receipts are completed and kept secure; reports are filed to a tax body on the use of receipts, and also the deposit of taxes in banks or organisations performing certain banking operations, in accordance with the procedure and within the deadline established by the authorised body.
2.
3.
2) 3)
4) 5)
Article 24. Interaction between Bodies of the Tax Service, the Authorised State and Local Executive Bodies 1. The bodies of the tax service shall interact with authorised state and local executive bodies; develop and adopt joint measures to control and ensure the mutual exchange of information in accordance with legislation of the Republic of Kazakhstan. The authorised state and local executive bodies shall be obliged to assist the bodies of the tax service in its tax monitoring obligations. The bodies of the tax service and customs bodies shall work together to carry out tax monitoring. 33
2.
3.
4.
The bodies of the tax service and local executive bodies shall work together to collect taxes in accordance with the procedure established by article 23 of this Code. The authority of authorised state and local executive bodies to collect other obligatory payments to the budget shall be determined by the special part of this Code. The bodies of the tax service shall be entitled to interact with the authorised state and local executive bodies electronically in accordance with the procedure established by this Code.
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Article 25. Financial, Legal and Social Protection of Officials of the Bodies of the Tax Service 1. Officials of the bodies of the tax service shall be protected by law in the performance of their official duties. A failure to follow the lawful requirements of an official of the bodies of the tax service; an insult, threat or infringement against; violence aimed at the life, health or property of officials of the bodies of the tax service or members of their family in connection with their professional duties; other actions that hinder officials of the bodies of the tax service from performing their professional duties shall be punishable by laws of the Republic of Kazakhstan. One-off compensation of five times the monthly salary of an official of the bodies of the tax service shall be paid from the state budget if an official, when performing official duties, suffers medium severity bodily injury. This amount shall subsequently be recovered from the guilty party in accordance with legislation of the Republic of Kazakhstan. One-off compensation in the form of a five-year maintenance payment shall be paid from the state budget to an official of the bodies of the tax service if the official, when performing official duties, suffers bodily injury rendering him incapable of carrying out official duties. The above amount, together with the difference between the officers total official salary and pension (for life), shall be recovered from the guilty party. In the event of the death of an official of the bodies of the tax service while performing official duties, his/her family or dependents (heirs) shall receive: 1) a one-off payment from the state budget equal to the deceaseds salary in his/her latest position for the previous 10 years; state welfare payments, where the death of the official in question results in the loss of the family breadwinner. Such payments shall be made at a level and in accordance with the procedure established by legislation on state disabled benefits, benefits for the loss of the breadwinner and old age benefits in the Republic of Kazakhstan.
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If the health or property of officials of the bodies of the tax service, or of his family or close relatives, are harmed due to the officers fulfilment of official duties, compensation shall be provided in accordance with legislation of the Republic of Kazakhstan.
Section 2. Tax obligations

Chapter 4. General provisions
Article 26. Tax Obligations 1. A taxpayers obligation to the state arising in accordance with tax legislation of the Republic of Kazakhstan, by virtue of which a taxpayer is obliged to create a record of registration with the tax bodies; specify objects of taxation and objects relating to taxation; calculate taxes and other obligatory payments to the budget; compile and file tax forms, except for tax registers, with a tax
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body within the established deadline; pay taxes and make other obligatory payments to the budget, shall be recognised as a tax obligation. 2. The state, represented by a body of the tax service, shall be entitled to demand that a taxpayer fulfil tax obligations in full and, in the event of a failure to fulfil them or to do so correctly, to apply measures to ensure their compulsory fulfilment in accordance with the procedure described by this Code.
Article 27. Objects of Taxation and (or) Objects relating to Taxation Objects of taxation and (or) objects relating to taxation shall constitute property and operations, which and (or) ownership of which lead to a tax obligation. Article 28. Tax Base A tax base shall be the cost, physical or other characteristics of an object of taxation used as the basis for determining tax and other obligatory payments to the budget. Article 29. Tax Rate 1. Tax rates shall determine the size of a tax obligation to calculate taxes and other obligatory payments to the budget per unit of measurement of an object of taxation or tax base. Tax rates shall be set either as a percentage or as a fixed amount per unit of measurement of an object of taxation or tax base.
2.
Article 30. Tax Period The term tax period shall be understood to mean a period of time established in relation to specific taxes or other obligatory payments to the budget, at the end of which objects of taxation or tax bases are determined; taxes and other obligatory payments to the budget are calculated.
Chapter 5. Fulfilment of tax obligations

Article 31. Fulfilment of Tax Obligations 1. 2. Taxpayers shall fulfil tax obligations themselves, unless otherwise established by this Code. To fulfil a tax obligation, taxpayers shall: 1) 2) 3) create a record of registration with a tax body; maintain a record of all objects of taxation and (or) objects relating to taxation; calculate taxes and other obligatory payments payable to the budget based on objects of taxation and (or) objects relating to taxation, tax bases and tax rates; compile and file tax forms, except for tax registers, with the bodies of the tax service in accordance with the established procedure; settle calculated and accrued taxes and other obligatory payments to the budget, advance and current taxes and other obligatory payments to the budget.
4)
5)
3.
Taxpayers should fulfil tax obligations in accordance with the procedure and within the deadline established by tax legislation of the Republic of Kazakhstan. Taxpayers shall be entitled to fulfil tax obligations ahead of schedule.
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5.
A taxpayers tax obligation to pay taxes and make other obligatory payments to the budget and an obligation to pay late payment interest and fines in non-cash form shall be deemed to have been fulfilled from the date a bank or organisation performing certain banking operations accepts a payment order for taxes and other obligatory payments, or from the day a taxpayer makes a payment through an automated teller machine or other electronic equipment; and when made in cash - from the day a taxpayer pays the specified amounts to a bank or organisation performing certain banking operations, the authorised state body or local executive body. When a taxpayers authorised representative pays taxes, makes other obligatory payments to the budget or social contributions, transfers obligatory pension contributions in those cases established by this Code, the sender should enter a surname, name, patronymic (if applicable) or the taxpayers name and identification number in payment documents. Where a taxpayers tax obligation to pay tax has been fulfilled by a tax agent, the tax obligation shall be deemed to have been fulfilled from the date tax is withheld. A tax obligation to pay taxes and charges, as well as an obligation to pay late payment interest may be fulfilled by means of a credit, in accordance with the procedure established by article 599 of this Code. A tax obligation to pay taxes and make other obligatory payments to the budget, and also an obligation to pay late payment interest and fines shall be fulfilled in tenge, except for those cases stipulated by this Code, legislative acts of the Republic of Kazakhstan governing the activities of joint stock companies, and also those cases where legislation of the Republic of Kazakhstan or the provisions of subsoil use contracts stipulate payments in kind or in foreign currency.
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Article 32. Special Considerations for calculating Taxes and Other Obligatory Payments to the Budget in the Fulfilment of a Tax Obligation 1. 2. A tax agent shall be responsible for calculating taxes withheld at the source of payment. In those cases stipulated by the special part of this Code, a specific tax body and the authorised state bodies may be made responsible for calculating certain taxes and other obligatory payments to the budget.
Article 33. Deadline for fulfilling a Tax Obligation The deadline for fulfilling a tax obligation shall be established by this Code. In this respect, the deadline established by this Code shall be counted down from the day following a specific event or legal action that has been determined as its start. A deadline shall pass at the end of the last day of the period established by this Code. If a deadline falls on a non-working day, it shall be deemed to have passed at the end of the following working day. Article 34. Order of Priority for settling a Tax Debt Tax debts shall be settled in the following order: 1) 2) 3) accrued late payment interest; arrears; fines.
Article 35. Fulfilment of Tax Obligations from transferring Property to Trust Management 1. Income receivable (received), expenses payable (incurred) and property purchased and (or) received by a trust manager from performing duties assigned to it shall be considered the income, expenses and property of the settler under a property trust management agreement or of a beneficiary in other trust management cases.
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A trust managers fee shall be the expenses of a settler under a property trust management agreement or of a beneficiary in other trust management cases. If a trust manager has been assigned the fulfilment of a tax obligation, then any positive difference between settlers or beneficiaries income and their expenses stipulated by this point, which is reduced by the settlers or beneficiaries losses carried forward from previous tax periods, and also by tax obligations assigned to a trust manager, shall be the settlers net trust management income under a property trust management agreement or that of a beneficiary in other trust management cases. Any expenses stipulated by this point that exceed a settlers income from a property trust management agreement or that of a beneficiary in other trust management cases, shall be the settlers trust management losses from a property trust management agreement or those of a beneficiary in other trust management cases. 2. A trust managers trust management income shall be a fee stipulated by a property trust settlement act. Trust management expenses shall be recognised as a trust managers expenses if the deed in question does not stipulate the settler refunding a trust managers expenses from a property trust management agreement or those of the beneficiary in other trust management cases. A settlers tax obligation from a property trust management agreement or beneficiarys tax obligation in other trust management cases: 1) with respect to taxes and other obligatory payments to the budget, except for value added tax, may be assigned by the settler or beneficiary in question to a trust manager based on a property trust settlement act, except for those cases stipulated by point 4 of this article; with respect to value added tax assigned to a trust manager in those cases and in accordance with the procedure established by section 8 and articles 568-571 of this Code. If a trust manager has been assigned a tax obligation to calculate, pay or withhold taxes or other obligatory payments to the budget, the trust manager should create a record of registration with a tax body at accordance with the procedure established by chapter 81 of this Code. 4. Settlers shall fulfil tax obligations themselves, except for value added tax obligations arising from property transfers to trust management, in relation to property trust management agreements, while a beneficiary shall do the same in other trust management cases, in accordance with the procedure established by this Code: 1) 2) when a tax obligation has not been assigned to a trust manager; if on the day trust management starts and for the trust management period, the trust manager is recognised as a person applying the provisions of articles 134, 135, 181, 182 and (or) chapter 63 of this Code.
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Trust managers should keep separate accounting in accordance with article 58 of this Code to fulfil tax obligations in relation to the transfer of property to trust management. A settlers or beneficiarys transfer of property to a trust manager shall not be considered the sale of the property in question and shall not be recognised as the trust managers income. A trust managers return of property once a document serving as the basis for trust management expires shall not be considered a sale of the property and shall not be recognised as the settlers income (loss) from a trust management agreement or that of a beneficiary in other trust management cases. When a trust manager has been assigned a tax obligation to calculate, pay or withhold taxes and other obligatory payments to the budget, and also to compile and file tax forms for a settler under a property trust management agreement or do the same for a beneficiary in other trust management cases, the tax obligation shall be fulfilled on behalf of the trust manager, at the rates and in
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accordance with the procedure established by the special part of the Code for persons recognised as trust managers. In this respect, a trust manager shall compile and file tax forms for all activities, including activities performed in the interests of a settler and (or) beneficiary, unless otherwise established by articles 58 and 64 of this Code. Article 36. Specific Considerations for fulfilling Tax Obligations when transferring Property to Trust Management 1. When an individual with an obligation to file the declaration stipulated by point 2 of article 185 of this Code transfers property to trust management, the tax obligation to compile and file the declaration should be fulfilled by the same individual. Legal persons or individual entrepreneurs shall fulfil their tax obligations themselves for income received from a bank from trust operations, as should individuals and legal entities when property is assigned to a non-resident trust manager. A bank shall be responsible, acting as a tax agent, for fulfilling the tax obligation of an individual who is not an individual entrepreneur and who has generated income from trust operations performed by the bank.
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Article 37. Fulfilment of the Tax Obligations of a Legal Entity undergoing Liquidation, or when a Structural Subdivision or Permanent Establishment of a Non-Resident Legal Entity cease Activities in the Republic of Kazakhstan 1. A resident legal entity shall inform the tax body at its location in writing of a liquidation decision within three working days of the decision being made. A legal entity undergoing liquidation shall file the following simultaneously to the tax body at its location within three working days of approving an interim liquidation balance sheet: 1) 2) 3) a tax application to conduct a documentary audit; liquidation tax reporting; a value added tax registration certificate or a note explaining loss or damage (for a payer of value added tax).
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Liquidation tax reporting shall be compiled for all taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions payable by a legal entity undergoing liquidation or for which it is the tax agent, from the start of the tax period in which a tax application to conduct a documentary audit was filed, until the application was filed. A legal entity undergoing liquidation shall pay taxes; make other obligatory payments to the budget and social contributions; and transfer obligatory pension contributions recorded in liquidation tax reporting within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes; making other obligatory payments to the budget and social contributions; and transferring obligatory pension contributions recorded in tax reporting filed before liquidation tax reporting, passes after the deadline referred to in part 1 of this point passes, payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed with a tax body.
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The tax bodies should start a documentary audit within 20 working days of receiving a tax application from a legal entity undergoing liquidation. A legal entity undergoing liquidation partially for the reasons referred to in points 4 and 11 of this article shall repay its tax debt using own funds as well as funds received from the realisation of its property, in the sequence established by legislative acts of the Republic of Kazakhstan. In this respect, the tax debt of the structural subdivisions of a legal entity undergoing liquidation, the 38
6.
permanent establishments and structural subdivisions of a non-resident legal entity shall be repaid if the non-resident legal entity in question fulfils tax obligations for a group of permanent establishments, branches and representative offices together through a permanent establishment or structural subdivision ceasing activities. 7. If the property of a legal entity undergoing liquidation is not sufficient to repay overdue taxes in full, the founders (participants) of the legal entity undergoing liquidation shall repay any remaining overdue taxes in those cases established by legislative acts of the Republic of Kazakhstan. If a legal entity undergoing liquidation has overpaid taxes, charges and late payment interest, then these amounts may be credited against other overdue taxes in accordance with the procedure established by article 599 of this Code. If a legal entity undergoing liquidation has paid taxes and other obligatory payments to the budget incorrectly, then these amounts shall be credited in accordance with the procedure established by article 601 of this Code. 9. If the value added tax offset of a legal entity undergoing liquidation exceeds tax accrued, the excess should be refunded to the legal entity undergoing liquidation in accordance with the procedure established by articles 273, 600 and 604 of this Code.
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10. If a legal entity undergoing liquidation has no outstanding tax debt: 1) any incorrectly paid taxes and other obligatory payments to the budget shall be refunded to the same legal entity in accordance with the procedure established by article 601 of this Code; overpaid taxes, charges and late payment interest shall be refunded to the same legal entity in accordance with the procedure established by article 602 of this Code; other obligatory payments to the budget made shall be refunded to the same legal entity in accordance with the procedure established by article 606 of this Code.
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11. If a legal entity undergoing liquidation incurs a tax obligation to pay taxes; make other obligatory payments to the budget and social contributions; transfer obligatory pension contributions, between the date liquidation tax reporting is filed and the date a liquidation tax audit is completed, the legal entity should fulfil the obligations based on notification from a tax body referred to in subpoint 3) of point 2 of article 607 of this Code. 12. Once a documentary audit has been completed and overdue taxes, obligatory pension contributions and social contributions have been repaid in full, a legal entity undergoing liquidation shall file the following with the tax body at its location: 1) 2) a liquidation balance sheet; a certificate from a bank and (or) organisation performing certain banking operations confirming the closure of bank accounts. If a legal entity undergoing liquidation has no tax debt, overdue pension or social contributions, it shall file the documents referred to in this point within three working days from the day a documentary audit is completed. A tax body should issue a certificate to a taxpayer on no outstanding tax liability, overdue obligatory pension contributions and social contributions in accordance with the procedure and within the deadline established by this Code. 13. A non-resident legal entitys structural subdivision or permanent establishment that are ending operations in the Republic of Kazakhstan shall fulfil tax obligations in accordance with the procedure established by this article.
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Article 38. Fulfilment of the Tax Obligation of a Resident Legal Entitys Structural Subdivision ceasing Operations 1. If a resident legal entity decides to cease the operations of its structural subdivision, the resident legal entity shall file the following simultaneously with the tax body at the location of the structural subdivision: 1) 2) 3) 2. a tax application to cease activities; a copy of the resident legal entitys decision to cease the operations of its structural subdivision; the liquidation tax reporting of its structural subdivision, unless otherwise stated by this article.
If a legal entitys structural subdivision ceasing activities is recognised as an independent payer of taxes, charges, obligatory pension contributions and social contributions, the relevant liquidation tax reporting shall be compiled for the period for the tax period in which a decision was taken to cease the activities of the legal entitys structural subdivision starts, until a tax application is filed to cease activities. A legal entitys structural subdivision ceasing activities should pay taxes and charges; make social contributions; and transfer obligatory pension contributions recorded in the liquidation tax reporting stipulated by point 2 of this article, within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes and charges; making social contributions; transferring obligatory pension contributions recorded in tax reporting filed prior to liquidation tax reporting, passes after the deadline referred to in part 1 of this point, payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed.
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If a legal entitys structural subdivision ceasing activities has not been recognised as an independent payer of taxes, charges, obligatory pension contributions and social contributions, liquidation tax reporting shall not be filed. The overdue taxes, obligatory pension contributions and social contributions of a structural subdivision ceasing activities shall be repaid using the funds of the legal entity that created the structural subdivision. After overdue taxes, obligatory pension contributions and social contributions have been repaid in full, a legal entity whose structural subdivision has ceased operations shall file a certificate from a bank and (or) organisation performing certain banking operations with the tax body at the structural subdivisions location to confirm that the structural subdivision ceasing operations has closed its bank accounts. A tax body shall be obliged to issue a certificate to taxpayers confirming of no outstanding tax liability, overdue obligatory pension contributions and social contributions in accordance with the procedure and within the deadline established by this Code.
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Article 39. Fulfilment of a Tax Obligation after the Reorganisation of a Legal Entity 1. A legal entity shall notify the tax body at its location in writing of a decision to reorganise, except for cases of transformation, within three working days of adopting the decision. A legal entitys reorganisation shall not be grounds for changing the deadline for its legal successor(s) to pay taxes or make other obligatory payments to the budget. If a reorganised legal entity has overpaid taxes, charges and late payment penalties to the budget, the amounts in question shall be credited to repay the reorganised legal entitys overdue taxes in accordance with the procedure established by article 599 of this Code. If a reorganised legal entity has paid taxes, charges and late payment interest to the budget incorrectly, then these amounts shall be credited in accordance with the procedure established by article 601 of this Code.
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If a reorganised legal entity has no tax debt: 1) incorrectly paid taxes and other obligatory payments to the budget shall be refunded to the legal entitys legal successor(s) in proportion to its share in property received from the reorganisation, in accordance with the procedure established by article 601 of this Code; overpaid taxes, charges and late payment interest to the budget shall be refunded to the legal entitys legal successor(s) in proportion to its share in property received from the reorganisation, in accordance with the procedure established by article 602 of this Code; other obligatory payments made to the budget shall be refunded to the legal entitys legal successor(s) in proportion to its share in property received from the reorganisation, in accordance with the procedure established by article 606 of this Code.
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A reorganised legal entity, except for a legal entity reorganised through a division or transformation, shall file the following simultaneously with the tax body at its location within three working days of the authorised state body removing the person from the state register of legal entities: 1) 2) a copy of an order from the authorised state body to reorganise the legal entity; a value added tax registration certificate or a written explanation as to how it was lost or damaged (if the legal entity is a payer of value added tax).
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A tax body, within three working days from the day it receives the documents referred to in point 5 of this article, and in the event a legal entity is reorganised through a: 1) merger shall transfer the balance on the personal accounts of the legal entities making up a newly created legal entity to the tax body at the location of the newly created legal entity, based on an act of transfer; takeover shall transfer the balance on the personal account of the legal entity being taken over to the tax body at the location of the legal entity taking over the legal entity in question, based on an act of transfer; division shall transfer the balance on the personal accounts of the legal entities being divided to the tax body at the location of the newly created legal entities, based on a separation balance sheet; spin-off shall transfer the balance on the personal account of the legal entity being spun off to the tax body at the location of the newly created legal entity, based on a separation balance sheet. The procedure for transferring the balance on a reorganised legal entitys personal account shall be established by article 595 of this Code.
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Article 40. Special Considerations for fulfilling the Tax Obligation of a Legal Entity following Reorganisation by Division 1. When undergoing a division, a legal entity shall file the following with the tax body at its location within three working days of approving a division balance sheet: 1) 2) 2. a tax application to conduct a documentary audit; liquidation tax reporting.
Liquidation tax reporting shall be compiled for all taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions of which the reorganised legal entity is a payer and (or) tax agent, to cover the period from the start of the tax period in which a tax application to conduct a documentary audit is filed, until the date the application is filed.
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A reorganised legal entity shall pay taxes, other obligatory payments to the budget, social contributions and obligatory pension contributions recorded in liquidation tax reporting within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes; making other obligatory payments to the budget and social contributions; and for transferring obligatory pension contributions recorded in tax reporting filed before liquidation tax reporting passes before the deadline referred to in part 1 of this point, the payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed.
4.
A tax body should begin a documentary audit within 20 working days from the date it receives a tax application from a reorganised legal entity. After completing a documentary audit in connection with a division, a reorganised legal entity should file the following simultaneously with the tax body at its location: 1) a value added tax registration certificate or a note explaining that it has been lost or damaged (for a payer of value added tax); a certificate from a bank and (or) organisation performing certain banking operations on the closure of bank accounts.
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If a legal entity being reorganised has no outstanding tax liability, overdue pension or social contributions, it shall file the documents referred to in this point within three working days from the day a documentary audit is completed. After the documents referred to in this point have been filed, and a reorganised legal entity has paid any overdue taxes, obligatory pension contributions and social contributions, a tax body shall issue the person in question with a certificate of no outstanding tax liability, obligatory pension contributions and social contributions in accordance with the procedure and within the deadline established by this Code. Article 41. Fulfilment of a Tax Obligation of an Individual Entrepreneur ceasing Operations 1. An individual entrepreneur should file the following simultaneously with the tax body at its location within a month of a decision to cease operations: 1) 2) 3) a tax application to conduct a documentary audit; liquidation tax reporting; certificate of registration as an individual entrepreneur or a written explanation as to how it was lost or damaged; a value added tax registration certificate or a note explaining how it was lost or damaged (for a payer of value added tax); a document confirming the publication of information in a periodical stating that the individual entrepreneur has ceased operations.
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2.
Liquidation tax reporting shall be compiled for all taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions of which the individual entrepreneur is a payer and (or) tax agent, covering the period from the start of the tax period in which a tax application to conduct a documentary audit is filed, until the date the application is filed. An individual entrepreneur shall pay taxes, make other obligatory payments to the budget, social contributions and obligatory pension contributions recorded in liquidation tax reporting within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes; making other obligatory payments to the budget and social contributions; and for transferring obligatory pension contributions recorded in tax reporting filed before liquidation tax reporting, passes before the deadline referred to in part 1 of this point, the
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payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed. 4. A tax body should begin a documentary audit within 20 working days from the date it receives a tax application from an individual entrepreneur ceasing operations. The tax debt of an individual entrepreneur ceasing operations shall be repaid using its own funds, including funds from the sale of its property, in accordance with the order of priority established by legislative acts of the Republic of Kazakhstan. If an individual entrepreneur ceasing operations has overpaid taxes, charges and late payment interest, then the amounts in question shall be credited against the tax debt of the individual entrepreneur ceasing operations, in accordance with the procedure established by article 599 of this Code. If an individual entrepreneur ceasing operations has paid taxes, charges and late payment interest incorrectly, then the amounts in question shall be credited in accordance with the procedure established by article 601 of this Code. 7. If an individual entrepreneur ceasing operations has no overdue taxes: 1) any incorrectly paid taxes and other obligatory payments to the budget shall be refunded to the individual entrepreneur in accordance with the procedure established by article 601 of this Code; overpaid taxes, charges and late payment interest shall be refunded to the individual entrepreneur in accordance with the procedure established by article 602 of this Code; other obligatory payments already made to the budget shall be refunded to the individual entrepreneur in accordance with the procedure established by article 606 of this Code.
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The tax obligation of an individual entrepreneur ceasing operations shall be considered as fulfilled once a documentary audit has been completed, provided overdue taxes, obligatory pension contributions and social contributions have been paid to the budget in full. An individual entrepreneurs date of de-registration shall be the date a tax obligation is considered as fulfilled in accordance with point 8 of this article.
9.
10. An individual entrepreneur who has ceased activities should file the following with the tax body at its location within three working days from the day overdue taxes, obligatory pension contributions and social contributions are paid in full: 1) a certificate from a bank and (or) organisation performing certain banking operations on the closure of bank accounts; a document from the internal affairs authorities on the destruction of the individual entrepreneurs stamp (if applicable). If an individual entrepreneur ceasing operations has no outstanding tax liability, overdue pension or social contributions, it shall file the documents referred to in this point within three working days from the day a documentary audit is completed. 11. The provisions of this article shall not cover individual entrepreneurs following a special procedure to fulfil tax obligations when terminating operations in accordance with article 43 of this Code. Article 42. Fulfilment of a Tax Obligation of Private Notaries and Advocates ceasing Operations 1. Private notaries and advocates should file the following simultaneously with the tax body at their location within a month of deciding to cease notary and advocate activities: 1) a tax application to conduct a documentary audit;
2)
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2) 3)
liquidation tax reporting; a document confirming publication of information on the private notary or advocate ceasing activities.
2.
Liquidation tax reporting shall be compiled for all taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions of which the private notary or advocate are a payer and (or) tax agent, from the start of the tax period in which a tax application to conduct a documentary audit is filed, until the date the application is filed. Private notaries or advocates shall pay taxes, make other obligatory payments to the budget, social contributions and obligatory pension contributions recorded in liquidation tax reporting within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes; making other obligatory payments to the budget and social contributions; and for transferring obligatory pension contributions recorded in tax reporting filed before liquidation tax reporting passes before the deadline referred to in part 1 of this point, the payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed.
3.
4.
A tax body should begin a documentary audit within 20 working days from the date it receives a tax application from a private notary or advocate ceasing activities. If a private notary or advocate ceasing activities have overpaid taxes, charges and late payment interest, then the amounts in question shall be credited against the tax debt of the private notary or advocate ceasing activities, in accordance with the procedure established by article 599 of this Code. If a private notary or advocate ceasing activities have paid taxes, charges and late payment interest incorrectly, then the amounts in question shall be credited in accordance with the procedure established by article 601 of this Code.
5.
6.
If a private notary or advocate ceasing activities have no overdue taxes: 1) any incorrectly paid taxes and other obligatory payments to the budget shall be refunded to the private notary or advocate in accordance with the procedure established by article 601 of this Code; overpaid taxes, charges and late payment interest shall be refunded to the private notary or advocate in accordance with the procedure established by article 602 of this Code; other obligatory payments to the budget already made shall be refunded to the private notary or advocate in accordance with the procedure established by article 606 of this Code.
2)
3)
7.
The tax obligation of a private notary or advocate ceasing activities shall be considered as fulfilled once a documentary audit has been completed, provided the private notary or advocate have no overdue taxes, obligatory pension contributions or social contributions, or have paid them in full. The date a private notary or advocate are re-registered shall be the date a tax obligation is fulfilled in accordance with point 7 of this article. A private notary or advocate who have ceased activities should file the following with the tax body at their location within three working days from the day overdue taxes, obligatory pension contributions and social contributions are paid in full; or from the day an audit is completed, provided no overdue taxes, obligatory pension contributions or social contributions have been recorded: 1) a certificate from a bank and (or) organisation performing certain banking operations on the closure of bank accounts used in the performance of notary or advocate activities; a document from the internal affairs authorities on the destruction of the private notarys or advocates stamp (if applicable). 44
8.
9.
2)
Article 43. Special Considerations for Certain Categories of Taxpayers ceasing Activities to fulfil Tax Obligations 1. If an individual entrepreneur applying special patent or simplified declaration tax regimes decides to cease activities, it shall file the following simultaneously with the tax body at its location: 1) 2) 3) a tax application to cease activities; liquidation tax reporting; a certificate of state registration as an individual entrepreneur or written explanation of how it was lost or damaged.
2.
Liquidation tax reporting shall be compiled for all taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions of which an individual entrepreneur and (or) tax agent are payers, covering the period from the start of the tax period in which a tax application to conduct a documentary audit is filed, until the date the application is filed. A taxpayer shall pay taxes, make other obligatory payments to the budget, social contributions and obligatory pension contributions recorded in liquidation tax reporting within 10 calendar days from the day liquidation tax reporting is filed with a tax body. If the deadline for paying taxes; making other obligatory payments to the budget and social contributions; and transferring obligatory pension contributions recorded in tax reporting filed before liquidation tax reporting passes before the deadline referred to in part 1 of this point, the payment (transfer) shall be made within 10 calendar days from the day liquidation tax reporting is filed.
3.
4.
If a taxpayer has overpaid taxes and other obligatory payments to the budget, then the amounts in question shall be refunded to the taxpayer in accordance with the procedure established by article 602 of this Code. If a taxpayer ceasing activities has paid taxes, charges and late payment interest incorrectly, then the amounts in question shall be credited in accordance with the procedure established by article 601 of this Code.
5.
Within three working days of receiving a tax application from a taxpayer to cease activities, a tax body should send a request to: 1) the authorised state bodies to provide information on transactions with property subject to state registration concluded by an individual entrepreneur ceasing activities, and also on their property as at the date a tax application to cease activities is received; to the customs bodies to provide information on foreign trade transactions concluded by an individual entrepreneur ceasing activities, and also confirmation of no outstanding customs payments and taxes as at a date no earlier than the date a demand is received from a tax body; to banks and (or) organisations performing certain banking operations to provide information on the balance and movement of funds on the bank accounts of individual entrepreneurs ceasing activities, as at the date a tax application is received to cease activities. Information on the transactions stipulated by subpoints 1) and 2) of this point, and also on the movement of funds on bank accounts shall be filed for a period that has not been subject to a tax audit, within the statute of limitation set by article 46 of this Code, until the day the tax authorities receive a tax application to cease activities.
2)
3)
6.
Information on a tax bodys enquiries referred to in point 5 of this article should be filed within 20 working days from the day it is received, unless otherwise stipulated by subpoint 12) of article 581 of this Code. A tax body should carry out a cameral review within 10 working days of receiving all information, and following shall compile an opinion in accordance with the procedure established by this Code.
7.
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8.
The tax debt of an individual entrepreneur ceasing operations shall be repaid using own funds, including those received from the realisation of property, in accordance with the sequence established by legislative acts of the Republic of Kazakhstan. If an individual entrepreneur ceasing operations has overpaid taxes, charges and late payment interest to the budget, then the amounts in question shall be credited against the individual entrepreneurs tax debt in accordance with the procedure established by article 599 of this Code. If an individual entrepreneur ceasing operations has paid taxes, charges and late payment interest to the budget incorrectly, then the amounts should be credited in accordance with the procedure established by article 601 of this Code.
9.
10. If a taxpayer ceasing activities has no tax debt: 1) any incorrectly paid taxes and other obligatory payments to the budget shall be repaid to the taxpayer in accordance with the procedure established by article 601 of this Code; overpaid taxes, charges and late payment interest shall be repaid to the taxpayer in accordance with the procedure established by article 602 of this Code; other obligatory payments to the budget already made shall be repaid to the taxpayer in accordance with the procedure established by article 606 of this Code.
2)
3)
11. An individual entrepreneurs activities shall be considered as completed if the following conditions have been met: 1) 2) a cameral review dated as specified in article 587 of this Code has been completed; the individual entrepreneur has no overdue taxes, obligatory pension and social contributions.
12. The date an individual entrepreneur is de-registered with a tax body shall be the later of the dates associated with the conditions stipulated by point 11 of this article. 13. An individual entrepreneur whose activities are considered as having ceased shall file the following with the tax body at their location within three working days of repaying overdue taxes, obligatory pension and social contributions in full: 1) a certificate from a bank (and) or organisation performing certain banking operations on the closure of bank accounts; a document from the internal affairs authorities on the destruction of the individual entrepreneurs stamp (if applicable).
2)
Article 44. Fulfilment of the Tax Obligation of an Individual Declared as Missing 1. An individuals tax obligation shall be suspended from the moment a court declares the individual as missing. The tax debt of an individual declared as missing by a court shall be repaid by a person authorised to act as trustee or administer the property of the missing individual. If the property of an individual declared as missing is not sufficient to repay a tax debt, then the tax bodies shall write off the unpaid part of the missing individuals tax debt on the basis of a court verdict on insufficient property. If a court reverses a decision to recognise a person as missing, any tax debt previously written off by the tax bodies shall be renewed irrespective of the statute of limitation set by article 46 of this Code.
2.
3.
4.
46
Article 45. Repayment of the Tax Debt of a Deceased Individual 1. A deceased individuals tax debt outstanding on the day of his death or on the day he is declared as deceased on the basis of a valid court decision shall be repaid by the deceaseds heir(s) up to the value of property inherited and in proportion to the share of the inheritance on the date it is received. If the property of a deceased individual or individual declared as deceased on the basis of a valid court decision is insufficient to repay a tax debt, then a tax body shall write off the unpaid portion of the tax debt on the basis of a court decision on insufficient property. 2. If an heir(s) is (are) a minor(s), then the obligation to repay an individuals tax debt outstanding on the date of his death or at the date he is declared as deceased, up to the value of property inherited and in proportion to the portion of inheritance on the date it is received, shall be the responsibility of the heir(s) in question, based exclusively on a valid court decision. An individuals tax debt outstanding on the date of his death or at the date he is declared as deceased on the basis of a valid court decision shall be considered as repaid if: 1) a minor heir(s) is (are) exempt from repaying the debt in question based on a valid court decision; no heir(s) exists (exist). If a court decision declaring an individual as deceased is annulled, any tax debt previously written off by a tax body shall be renewed in court irrespective of the statute of limitation set by article 46 of this Code. 4. The provisions of this article shall extend to deceased individual entrepreneurs, private notaries or advocates or those declared as deceased on the basis of a court decision.
3.
2)
Article 46. Statute of Limitation of a Tax Obligation and Claim 1. The stature of limitation for a tax obligation and claim shall be the period during which: 1) the body of the tax service is entitled to accrue or review taxes and other calculated and accrued obligatory payments to the budget; a taxpayer (tax agent) is obliged to file tax reporting, is entitled to adjust or supplement tax reporting, or withdraw tax reporting; a taxpayer (tax agent) is entitled to claim a credit and (or) a refund of taxes and other obligatory payments to the budget, as well as late payment interest; a body of the tax service should credit and (or) refund taxes and other obligatory payments to the budget, as well as late payment interest.
2)
3)
4)
2.
The statute of limitation for a tax obligation and claim shall be five years. A statute of limitation shall start from the end of the relevant tax period, except for those cases stipulated by this article. A body of the tax service shall be entitled to accrue or reconsider an amount of excess profits tax accrued for taxpayers operating under a subsoil use contract, as well as tax and other obligatory payments to the budget calculated using one of the following indices: internal rate of return (IRR) or internal rate of profit or R-factor (profitability indicator), while a subsoil use contract remains valid and for five years from the moment a subsoil use contract expires. A body of the tax service shall be entitled to accrue or review taxes and other obligatory payments to the budget for operations with a taxpayer declared a fictitious enterprise, or a transaction(s) concluded with a private enterprise without any intention of performing business activities for the entire statute of limitation for tax obligations and claims once a court verdict or resolution have entered into force.
3.
4.
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5.
If a taxpayer (tax agent) files additional tax reporting for a period for which the statute of limitation as established by point 1 of this article passes in less than one calendar year, the statute of limitation for the accrual and (or) reconsideration of taxes and other obligatory payments to the budget calculated shall be extended by one calendar year. For taxes and other obligatory payments to the budget, late payment interest to be credited and (or) refunded by the tax bodies in accordance with the procedure established by this Code, the statute of limitation shall be five years from the end of the tax period, except for the case established by article 548 of this Code. If the statute of limitation for a tax obligation and claim established by this article expires in the period in which a taxpayer (tax agent) is duly appealing against a notification of tax audit results and (or) a decision of a higher body of the tax service issued after considering an appeal, and also against the actions (inaction) of officials of the bodies tax service, the statute of limitation shall be extended for the disputed part until a decision is issued on the consideration of the appeal or writ.
6.
7.
Chapter 6. Change to tax payment deadlines. Grounds for cancelling a tax obligation
Article 47. General Provisions 1. The term change to tax payment deadlines shall be understood to mean that based on a taxpayer application the deadline established by this Code for paying taxes (except for taxes withheld at the source of payment, excise duty and value added tax on imported goods) may be deferred, but by no more than twelve calendar months. An application to change a tax payment deadline should make reference to the reasons for the deferral of the tax payment deadline. 2. 3. The right to fulfil a tax obligation according to amended deadlines may not be assigned. A change to a tax payment deadline shall not free taxpayers from late payment interest for a late payment of taxes in accordance with article 610 of this Code. A tax payment deadline shall be changed against the security of a taxpayers and (or) third partys property and (or) against a bank guarantee, in accordance with the procedure established by this chapter.
4.
Article 48. Body authorised to change Tax Payment Deadlines 1. The authorised body shall be responsible for changing deadlines to pay taxes to the state budget or between national and local budgets. The tax body where a taxpayer has its record of registration shall be responsible for changing deadlines to pay taxes in full to local budgets.
2.
Article 49. Procedure for changing Tax Payment Deadlines to pay Taxes under Security of a Bank Guarantee 1. A taxpayer shall file an application to change a tax payment deadline under security of a bank guarantee with the body of the tax service authorised to change the tax payment deadline within 10 calendar days of the day a bank guarantee agreement is concluded. An application shall include the bank guarantee agreement concluded between the guarantor bank and taxpayer, and the bank guarantee. A bank guarantee should be irrevocable. The contents of a bank guarantee agreement should meet the requirements of legislation of the Republic of Kazakhstan.
2.
48
3.
A body of the tax service should adopt one of the following decisions to enter into force from the day it is signed, within 15 calendar days of receipt of a taxpayer application: 1) to change a tax payment deadline, together with a schedule agreed with the taxpayer to fulfil a tax obligation, which should establish the tax payment deadline and be an integral part of this decision; to refuse to change the tax payment deadline.
2) 4.
A decision to change a tax payment deadline shall indicate the type and amount of tax for which the payment deadline has been changed; the surname, name and patronymic (if applicable) or title of the taxpayer, identification number and the period of validity of the decision. A decision to refuse to change a tax payment deadline shall be adopted if a taxpayer has failed to observe the provisions of this chapter.
5.
Article 50. Procedure for changing Tax Payment Deadlines to pay Taxes under the Security of Property 1. A taxpayer shall file an application to change the change a tax payment deadline under the security of own and (or) a third partys property with the body of the tax service authorised to change a tax payment deadline within 10 calendar days from the day a security agreement is concluded. An application shall be filed together with a security agreement and an appraisers report on the market value of the pledged property. A body of the tax service should adopt one of the following decisions to enter into force from the day it is signed, within 15 calendar days of receipt of a taxpayer application: 1) to change a tax payment deadline, together with a schedule agreed with the taxpayer to fulfil a tax obligation, which should establish the tax payment deadline and be an integral part of this decision; to refuse to change a tax payment deadline.
2.
2) 3.
A decision to change a tax payment deadline shall indicate the type and amount of tax for which the payment deadline has been changed; the surname, name and patronymic (if applicable) or title of the taxpayer, identification number and the period of validity of the decision. A decision to refuse to change a tax payment deadline shall be adopted if a taxpayer has failed to observe the provisions of this chapter.
4.
Article 51. Procedure for concluding a Property Security Agreement 1. A property security agreement shall be concluded between a taxpayer and (or) third party and the tax body where the taxpayer has its record of registration within 15 calendar days from the day a taxpayer applies in writing to conclude a security agreement, together with an appraisers report on the market value of the property to be used as security. An appraisers report on the market value of property to be used as security should be compiled at least 15 calendar days before a taxpayer files a written application to conclude a security agreement. 2. A property security agreement may be concluded if the following conditions have been met: 1) the content of a security agreement meets the requirements set by legislation of the Republic of Kazakhstan; property used as security is liquid, insured against loss or damage, and its market value is no less than tax payable to the budget, including recovery expenses. The following may not be used as security:
2)
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vital infrastructure; electricity, heat and other forms of energy; arrested property; property that has had restrictions placed on it by the state bodies; property encumbered by the rights of third parties; perishable raw materials or foodstuffs; property rights; 3) 4) property used as security has not been re-pledged; in those cases when legislative acts of the Republic of Kazakhstan stipulate the obligatory state registration of a property security agreement, a taxpayer, after concluding a security agreement, should ensure it is duly registered and filed immediately with the body of the tax service responsible for changing the tax payment deadline together with a document confirming registration of the security agreement.
Article 52. Loss of Validity of a Decision to change a Tax Payment Deadline 1. A decision to change a tax payment deadline shall no longer be valid from the moment the date indicated in it passes. A decision to change a tax payment deadline shall lose its force prematurely in those cases when a taxpayer pays an entire sum of taxes before the decision deadline or if the taxpayer misses the tax payment deadline.
2.
Article 53. Procedure for recovering and realising Secured Property, and also Requirements for fulfilling a Bank Guarantee 1. If the schedule for fulfilling a tax obligation secured by a taxpayers and (or) third partys property and (or) bank guarantee is breached, a tax body shall recover the secured property or demand that the bank guarantee be executed. Property secured by a taxpayer and (or) third party shall be realised through non-court enforcement procedures in accordance with civil legislation of the Republic of Kazakhstan.
2.
Article 54. Cessation of a Tax Obligation 1. An individuals tax obligation shall cease: 1) 2) 2. with the death of the individual; with the declaration of the individual as deceased on the basis of a valid court decision.
An individual entrepreneurs tax obligation shall cease after the individual entrepreneur ceases activities in accordance with the procedure established by legislation of the Republic of Kazakhstan. A legal entitys tax obligation shall cease: 1) 2) after its liquidation; following re-organisation through incorporation (with respect to the incorporated legal entity), merger or spin-off.
3.
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2. Special part
Section 3. General provisions
Article 55. Taxes and other Obligatory Payments to the Budget 1. The following shall be valid in the Republic of Kazakhstan: 1) taxes: corporate income tax; individual income tax; value added tax; excise duty; rent tax on exports; taxes and special payments of subsoil users; social tax; tax on means of transport; land tax; property tax; tax on the gaming business; fixed tax; unified land tax; 2) other obligatory payments to the budget: state duty; fees: registration fees; fee for the passage of vehicles through the Republic of Kazakhstan; auction fee; license fee for the right to perform certain activities; fee for a permit for television and radio organisations to use the radioactive spectrum; charges: for the use of land plots; for the use of surface water resources;
51
for environmental emissions; for the use of wildlife; for the use of the forest; for the use of highly protected nature reserves; for the use of the radio-frequency spectrum; for the provision of long-distance and (or) international telephony, and cellular communication; for the use of navigable waterways; for placing outdoor (visual) advertising. 2. Taxes and other obligatory payments to the budget shall be paid to relevant budgets in accordance with the procedure determined by the Budget Code of the Republic of Kazakhstan and the law on the state budget.
Chapter 7. Tax accounting

Article 56. Tax Accounting and Accounting Documentation 1. Tax accounting shall be the process by which a taxpayer (tax agent) keeps accounting documentation in accordance with the requirements of this Code to collate and systemise information on objects of taxation and (or) objects relating to taxation; calculate taxes and other obligatory payments to the budget and compile tax reporting.
2. Tax accounting shall be based on accounting data. The procedure for keeping accounting documentation shall be established by accounting and financial reporting legislation of the Republic of Kazakhstan. 3. Taxpayers (tax agents), except for individual entrepreneurs using the patent special tax regime for small businesses, shall organise tax accounting and identify the format for collating and systemising information for tax purposes themselves in the form of tax registers so as to: 1) create complete and accurate information on the accounting procedure involved in taxing the taxpayers (tax agents) operations during the tax period; provide a breakdown for each line of tax reporting forms; compile tax reporting accurately; provide information to the bodies of the tax service for tax control purposes. An individual entrepreneur using the patent special tax regime shall keep tax accounting in the format established by the authorised body. 4. A taxpayer (tax agent) shall develop and approve a tax accounting policy itself, unless otherwise established by this point. Taxpayers using the special tax regime for small businesses and the special tax regime for farms and farm holdings shall approve a tax accounting policy for activities covered by these special tax regimes independently in the format established by the authorised state body. 5. A tax accounting policy shall be a document adopted by a taxpayer (tax agent) to establish a procedure for keeping tax accounting in observance of the requirements of this Code.
2) 3) 4)
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A tax accounting policy may be incorporated as a separate section in an accounting policy developed in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan. 6. Accounting documentation shall include: 1) 2) 3) 4) accounting documentation; tax forms; a tax accounting policy; other documents that are the basis for identifying objects of taxation and (or) objects relating to taxation, and also to calculate a tax obligation.
Article 57. Tax Accounting Rules 1. A taxpayer (tax agent) shall keep tax accounting using the accrual method in accordance with the procedure and under the conditions established by this Code. The accrual method shall be an accounting method whereby, irrespective of when payment is made, income and expenses are recorded from the moment work is performed, services provided and goods shipped for realisation and to recognise property. A taxpayer (tax agent) shall identify objects of taxation and (or) objects relating to taxation based on tax accounting at the end of the tax period, and shall calculate taxes and other obligatory payments to the budget. Unless otherwise stipulated by this Code exchange differences shall be recorded for tax purposes using the market rate in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan. Inventories are recorded for tax purposes in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, unless otherwise stipulated by this Code. If a debtor fails to fulfil a secured obligation, barter agreement operations to transfer collateral to the pledge holder shall be regarded for tax purposes as a realisation of goods, performance of work or provision of services.
2.
3.
4.
5.
6.
Article 58. Separate Tax Accounting Regulations 1. Taxpayers carrying out activities for which this Code stipulates various taxation conditions should keep separate records of objects of taxation and (or) objects relating to taxation to calculate tax liabilities on these activities. A subsoil user should keep separate tax records of objects of taxation and (or) objects relating to taxation to calculate tax obligations on contractual activities separately from non-contractual activities in accordance with the procedure stipulated by article 310 of this Code. Operations with derivatives shall not be treated as subsoil use operations (contractual activities). In the case stipulated by point 4 of article 80 of this Code, an authorised representative of participants in a joint venture agreement should keep separate tax records of objects of taxation and (or) objects relating to taxation for joint activities and other activities. A trust manager should keep a separate tax record of objects of taxation and (or) objects relating to taxation for trust management activities performed in the interests of a settler under a property trust management agreement or those of a beneficiary in other trust management cases, and other activities.
2.
3. 4.
5.
53
6.
A taxpayer shall keep separate tax accounting based on accounting documentation, in observance of the requirements established by this Code. A taxpayer may not combine objects of taxation and (or) objects relating to taxation when calculating tax obligations for activities requiring separate tax accounting records under this Code.
7.
A taxpayer shall establish a separate tax accounting procedure in its tax accounting, including a list of general income and expenses, methods for allocating income and expenses between activities for which this Code has established various taxation conditions. In this respect, a taxpayers general income and expenses shall be recognised as income and expenses from a particular reporting tax period, including income and expenses from general fixed assets that have no direct cause and effect on a specific type of activity, and which may not be fully attributable to any particular activity for which this Code has established various taxation conditions.
8.
If a tax accounting policy does not establish a procedure to allocate general income and expenses for which this Code has established various taxation conditions, then during a tax audit the bodies of the tax service shall allocate the income and expenses in accordance with the procedure established by subpoint 1) of point 9 of article 310 of this Code.
Article 59. Requirements for compiling and storing Accounting Documentation 1. Accounting documentation shall be compiled on paper and (or) electronically and filed to the bodies of the tax service during a tax audit. Taxpayers (tax agents) shall compile accounting documentation in Kazakh and (or) Russian. If specific documents have been compiled in foreign languages, a body of the tax service shall be entitled to request their translation into Kazakh or Russian. 3. If accounting documentation has been compiled electronically, a taxpayer (tax agent) should, at the request of officials of the bodies of the tax service, file hard copies of the documentation during a tax audit. Accounting documentation shall be stored until the statute of limitation set by article 46 of this Code passes for each type of tax or other obligatory payment to the budget covered by the documentation in question, beginning from the tax period following the period in which accounting documentation is compiled, except for those cases stipulated by points 5 and 6 of this article. Accounting documentation confirming the value of fixed assets, including those transferred to (received from) financial lease, shall be stored until the statute of limitation set by article 46 of this Code, which started from the end of the final tax period in which depreciation is calculated on the asset, expires. Accounting documentation confirming the value of non-depreciable assets for taxation purposes shall be stored until the statute of limitation set by article 46 of this Code, which started from the end of the tax period in which the assets in question were retired or used in full, expires. If a legal entity taxpayer (tax agent) has been reorganised, the obligation to store the reorganised entitys accounting documentation shall be the responsibility of its legal successor(s).
2.
4.
5.
6.
7.
Article 60. Requirements for Tax Accounting Policy 1. Tax accounting policy should include the following: 1) the forms and procedure for compiling tax registers developed by taxpayers (tax agents) themselves; a list of activities performed according to a general classifier of economic activities approved by the authorised state body for standardisation; 54
2)
3) 4)
the name of officials responsible for observing accounting tax policy; a procedure for keeping separate tax accounting for those activities where this Code stipulates various taxation conditions, in observance of the rules established by article 58 of this Code; the procedure for keeping separate tax accounting for subsoil use operations; methods selected by taxpayers and stipulated by this Code to deduct expenses for corporate income tax purposes, and also to offset value added tax; a policy to identify hedging risks, as well as associated hedged items and hedging instruments; a method to assess hedging performance.
5) 6)
7)
2.
A tax accounting policy for joint activities shall be developed and approved by the participants of a joint activity agreement in accordance with the procedure and under the principles established by this Code. The tax accounting policy provisions stipulated by subpoints 1), 4)-6) of point 1 of this article shall cover a calendar year. When performing activities that had not been previously indicated in a tax accounting policy, a taxpayer (tax agent) should make the relevant amendments and (or) additions to the tax accounting policy. A taxpayer (tax agent) shall make a change and (or) addition to a tax accounting policy by using one of the following methods: 1) approving a new tax accounting policy or new section of an accounting policy developed in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan; introducing amendments and (or) additions to a current tax accounting policy or to the section of a current accounting policy developed in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan.
3.
4.
5.
2)
6.
A taxpayer (tax agent) may not make amendments and (or) additions to tax accounting policy: 1) 2) for a tax period being audited while conducting comprehensive and targeted audits; for a tax period being appealed before the deadline for filing and reviewing an appeal against a notification of tax audit results and (or) decision of a higher tax body of the tax service issued after considering an appeal against notification, taking into account the renewed appeal deadline.
Chapter 8. Tax forms

Article 61. Tax Forms and the Procedure for compiling them 1. 2. Tax forms shall include tax reporting, tax applications and tax registers. Taxpayers (tax agents) shall compile tax forms in hard and (or) soft copy in Kazakh and (or) Russian. Taxpayers (tax agents) or their representatives should sign tax forms in hard copy, and stamp them if they possess a stamp indicating their name in those cases required by legislation of the Republic of Kazakhstan. Tax forms compiled electronically, except for tax registers, should be certified by a taxpayers (tax agents) electronic signature. 55
3.
Article 62. Storage Period for Tax Forms 1. A taxpayer (tax agent) shall store tax forms for the statute of limitation set by article 46 of this Code. When a tax agent or legal entity tax agent are reorganised, the obligation to store tax forms for the reorganised person shall be the responsibility of its legal successor(s).
2.
1. Tax Reporting Article 63. General Provisions 1. Tax reporting shall be a document filed by a taxpayer (tax agent) with bodies of the tax service in accordance with the procedure established by this Code, which should contain data on the taxpayer, objects of taxation and (or) objects relating to taxation, and also calculations of tax obligations, obligatory pension contributions and social contributions. Tax reporting shall include tax declarations, statements, appendices to them to be compiled and filed by taxpayers (tax agents) for taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, and also monitoring reports provided by major taxpayers subject to monitoring. Tax reporting forms and the rules for compiling them shall be approved by the authorised body, taking into account the provisions of articles 65-67 of this Code. Tax reporting shall be divided into the following categories: 1) initial tax reporting filed by a person for the tax period in which it created a record of registration and (or) incurred its first tax obligation to pay specific taxes and make other obligatory payments to the budget, or an obligation to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions for which the person in question is a taxpayer (tax agent); regular tax reporting filed by a person for tax periods following the tax period in which it created a record of registration and (or) incurred its first tax obligation for specific taxes, other obligatory payments to the budget, or an obligation to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions for which the person in question is a taxpayer (tax agent); additional tax reporting filed by a person after it has amended and (or) supplemented previously filed tax reporting for the tax period to which the amendments and (or) additions relate, for taxes and other obligatory payments to the budget, and also for obligatory pension contributions and social contributions for which the person in question is a taxpayer (tax agent); additional by notification tax reporting filed by a person after it has made changes and (or) additions to earlier tax reporting for a tax period in which a tax body has discovered breaches after a cameral review, for taxes and other obligatory payments to the budget, and also for obligatory pension contributions and social contributions for which the person in question is a taxpayer (tax agent); liquidation tax reporting filed by a person when ceasing activities or reorganising through a division, for taxes, other obligatory payments to the budget, for obligatory pension contributions and social contributions for which the person in question is a taxpayer (tax agent), and also when de-registering for value added tax purposes.
2.
3.
2)
3)
4)
5)
Article 64. Special Considerations for the Compilation of Tax Reporting 1. Taxpayers performing activities for which this Code has stipulated various taxation conditions shall compile tax reporting separately for each activity type. Subsoil users for which this Code stipulates separate tax accounting shall compile tax accounting in accordance with the procedure stipulated by this Code.
2.
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3.
If a taxpayer is classed as a taxpayer for whom the authorised body has established various tax forms, then the taxpayer should compile the tax forms stipulated for each relevant category of taxpayer.
Article 65. Special Considerations of Corporate Income Tax Reporting 1. The authorised body shall approve corporate income tax declaration forms with appendices for each of the following taxpayer categories: 1) 2) 3) 4) 5) insurance and reinsurance organisations; and mutual insurance funds; non-commercial organisations; organisations operating in the social sphere; subsoil users operating under subsoil use contracts or production sharing agreements; other payers of corporate income tax not indicated in this point and that are obliged to compile and file a declaration.
2.
A corporate income tax declaration is designed for payers of corporate income tax to declare income included in aggregate annual income, deductible expenses, adjustments to them, taxable income (losses), income and expenses reducing taxable income, losses carried forward, tax for the tax period and tax amounts reducing tax calculated for the tax period. The appendices to a corporate income tax declaration are designed to provide a detailed description of information on the calculation of tax obligations used by the bodies of the tax services for tax control purposes. The appendices to the corporate income tax declaration may contain information on: 1) 2) capital gains (losses); income or losses from doubtful debts, doubtful claims, write-offs, including per creditor or debtor; interest income and expenses. The interest expense appendix may be broken down into interest recipients; expenses on goods realised, work performed and services provided. This appendix may be broken down by suppliers for persons that are not payers of value added tax; income (losses) on derivatives, except for swaps. This appendix may be broken down by contracting parties; a non-residents executive and general administrative expenses; investment tax concessions; income and expenses that reduce taxable income. This appendix may be broken down by recipients of property transferred free of charge, and sponsorship; depreciation rates, repair expenses and other deductions on fixed assets;
3)
4)
5)
6) 7) 8)
9)
10) income from foreign sources, the profit or a portion of profit of companies registered or located in low-tax countries, and also foreign tax paid and credits. This appendix may be broken down by persons from which income is received; 11) tax obligations from standard tax concessions received; 12) income exempt from taxation in accordance with international treaties; 57
13) a reconciliation between an income statement and corporate income tax declaration; 14) swap income (losses). This appendix may be broken down by contracting parties; 15) objects of taxation and (or) objects relating to taxation, a tax obligation for each property trust settler and (or) recipients in other trust cases; 16) a residents executive and general administrative expenses deducted by the residents permanent establishments located outside the Republic of Kazakhstan. 3. For certain categories of taxpayers, in addition to the information referred to in point 2 of this article, corporate income tax declaration appendices may contain information on: 1) for insurance and reinsurance organisations; mutual insurance funds on income from a reduction in provisions and expenses from creating provisions; for non-commercial organisations: income and expenses on property received (transferred) free of charge, on subscription fees and membership fees. This appendix may be broken down into persons that have transferred and received property free of charge, and also into persons that have made and received subscription and membership fees; expenses to maintain a non-commercial organisation; expenses to organise and hold events; 3) for subsoil users operating under subsoil use contracts or production sharing agreements: contributions to a field recovery fund; the allocation of net income and net income used to increase a resident legal entitys charter capital, retaining the participation interest of each participant or shareholder; objects of taxation and (or) objects relating to taxation, separate corporate income tax calculations for each subsoil use contract; details of the calculation of objects of taxation and (or) objects relating to taxation, tax on the subsoil use contracts stipulated by article 308 of this Code; geological study, exploration and preparation work to produce natural resources and other subsoil user expenses; 4) for banks and organisations performing certain banking operations under license, and also persons performing these operations without a license within their authority as established by legislative acts of the Republic of Kazakhstan: income from goods realised, work performed and services provided, broken down into goods, work and services; income from a reduction in provisions and expenses from creating provisions (for persons entitled to deductions in accordance with article 106 of this Code); contributions to guarantee individuals deposits. 4. The authorised body shall approve the following forms for calculating corporate income tax: 1) 2) 3) statement of advance corporate income tax payments for the period before a declaration is filed; statement of advance corporate income tax payments for the period after a declaration is filed; statement of corporate income tax withheld at the source of payment from a residents income; 58
2)
4)
statement of corporate income tax withheld at the source of payment from a non-residents income.
5.
The statements listed in subpoints 1) and 2) of point 4 of this article should be used to calculate advance corporate income tax payments for the current tax period and filed by taxpayers whom this Code obligates to calculate and make advance corporate income tax payments. Tax agents shall file the statements listed in subpoints 3) and 4) of point 4 of this article to record information on the calculation of a tax obligation and that is used in tax control. An appendix to a statement of corporate income tax withheld at the source of payment from a residents income may contain information for each recipient of income on: 1) 2) 3) 4) 5) income payable; income paid; the corporate income tax rate; tax withheld at the source of payment; actual tax paid.
6.
An appendix to a statement of corporate income tax withheld at the source of payment from a nonresidents income may contain information for each recipient of income on: 1) 2) the taxpayers general identification data; objects of taxation, including those exempt from taxation in accordance with an international treaty; tax rates; the application of international treaties; the period activities are performed in the Republic of Kazakhstan; tax calculated in accordance with this Code or international treaty.
3) 4) 5) 6)
Article 66. Features of Tax Reporting for Value Added Tax 1. A value added tax declaration should be used by payers of value added tax to calculate value added tax and record information on: 1) 2) 3) taxable and non-taxable turnover; taxable imports; the value at which goods are purchased, work performed and services are provided in the Republic of Kazakhstan; value added tax for offset; the method chosen to offset value added tax and its results; value added tax offset that exceeds value added tax accrued, including at the end of the tax period; value added tax calculated.
4) 5) 6)
7)
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A value added tax declaration may contain a claim to return value added tax offset that exceeds value added tax accrued. In this respect, a claim to return excess value added tax may be recorded in an initial, regular and (or) liquidation value added tax declaration. 2. Value added tax declaration appendices shall be used to provide detailed information on the value of a tax obligation which the bodies of the tax service shall used for tax control purposes. Value added tax declaration appendices may contain information on: 1) 2) 3) turnover from sales taxed at the zero rate; turnover from sales exempt from value added tax; work and services purchased from a non-resident, and value added tax payable for the nonresident in question; adjustments to taxable turnover and value added tax offset; documents concerning goods released from the state material reserve and drawn up by the authorised body for state material reserves, broken down into purchasers.
4) 5)
Article 67. Features of Tax Reporting on Individual Income Tax and Social Tax 1. The authorised body shall approve the following individual income tax and social tax declaration forms: 1) an individual income tax and social tax declaration with appendices for individual residents of the Republic of Kazakhstan, for the following categories of taxpayers acting as tax agents: resident legal entities of the Republic of Kazakhstan, except for legal entities applying the special tax regime for small businesses based on a simplified declaration; non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment; individual entrepreneurs, except for those applying special tax regimes for farms or farm holdings, for small businesses based on a simplified declaration; private notaries; advocates; 2) an individual income tax and social tax declaration with appendices for foreign nationals and stateless individuals for the following categories of taxpayers acting as tax agents: resident legal entities of the Republic of Kazakhstan, except for legal entities applying the special tax regime for small businesses based on a simplified declaration; non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment; individual entrepreneurs, except for those applying special tax regimes for farms or farm holdings, for small businesses based on a simplified declaration; 3) an individual income tax declaration with separate appendices for each taxpayer category: individual entrepreneurs, except for those applying special tax regimes for farms or farm holdings, for small businesses based on a patent or simplified declaration, for non-resident individuals; 60
the individuals referred to in point 2 of article 185 of this Code; individuals who have received income not taxable at the source of payment (except for individual entrepreneurs), taxpayers who have received income outside of the Republic of Kazakhstan, individual with funds in accounts in foreign banks outside of the Republic of Kazakhstan. 2. An individual income tax and social tax declaration for tax agents in relation to citizens of the Republic of Kazakhstan should contain information on: 1) individuals income on which individual income tax and obligatory pension contributions have been calculated and withheld; and social tax and social contributions have been calculated; any social benefits accrued that exceed contributions accrued to the State Social Insurance Fund; amounts paid by state institutions for social welfare due to a temporary disability; tax obligations, obligatory pension contributions and social contributions. The bodies of the tax service should use detailed information on a tax obligation in individual income tax and social tax declaration appendices for tax control purposes. Individual income tax and social tax declaration appendices may contain information on individual income tax and social tax calculated for structural subdivisions according to a list of employee income subject and not subject to social tax; on social tax calculated by taxpayers in relation to activities performed within the framework of each subsoil use contract. The provisions of this point shall cover tax agents individual income tax and social tax declarations in relation to citizens of the Republic of Kazakhstan and filed for a legal entitys structural subdivisions. 3. A tax agents individual income tax and social tax declaration in relation to foreign nationals and stateless individuals should contain information on: 1) income accrued and payable to foreign nationals and stateless individuals on which individual income tax and obligatory pension contributions have been calculated and withheld; and social tax and social contributions have been calculated; non-residents accrued but unpaid income that has been deducted by a tax agent, and from which individual income tax has been calculated; tax and other obligatory payments to the budget calculated and payable to the budget, as well as obligatory pension contributions and social contributions in accordance with this Code or international treaty. The bodies of the tax service shall use detailed information on the calculation of a tax obligation in individual income tax and social tax declaration appendices for tax control purposes. Individual income tax and social tax appendices may contain information on the following for each recipient: 1) 2) the taxpayers general identification data; objects of taxation, including those exempt from taxation in accordance with an international treaty; tax rates; the application of international treaties; the length of activities in the Republic of Kazakhstan; 61
2)
3) 4)
2)
3)
3) 4) 5)
6)
individual income tax and social tax calculated, including for each structural subdivision, in accordance with this Code or an international treaty; tax deductions. This point shall also cover tax agents individual income tax and social tax declarations in relation to foreign nationals and stateless individuals which were filed for a legal entitys structural subdivisions.
7)
4.
Individual income tax declarations for individual entrepreneurs shall be filed by individual entrepreneurs, except for those applying the special tax regimes for farms and farm holdings, for small businesses based on a patent or simplified declaration. Taxpayers should use this declaration to declare: income included in aggregate annual income; deducted expenses; adjustments to income and deductions; taxable income (losses); income and expenses that reduce taxable income; losses carried forward, and tax calculated. The bodies of the tax service shall use detailed information in individual income tax and social tax declaration appendices on the calculation of a tax obligation for tax control purposes. Individual income tax appendices may contain information: 1) 2) referred to in subpoints 1)-6), 8)-10) and 12)-15) of point 2 of article 65 of this Code; on the tax deductions established by point 1 of article 166 of this Code.
5.
An individual income tax and property tax declaration shall be filed by the individuals referred to in point 2 of article 185 of this Code. Taxpayers shall use this declaration to declare income received, individual income tax calculated and paid on income not taxable at the source of payment, individual income tax withheld on income taxable at the source of payment. The bodies of the tax service shall use detailed information in individual income tax and property tax declaration appendices on tax obligations, ownership rights to property located in the Republic of Kazakhstan and (or) outside of it, for tax control purposes. Appendices to individual income tax and property tax declarations may contain information on: 1) 2) 3) income taxable at the source of payment; property and other types of income; property owned.
6.
Individuals not referred to in points 4 and 5 of this article, including those who received income not taxable at the source of payment (except for individual entrepreneurs), as well as individuals with funds in accounts in foreign banks outside of the Republic of Kazakhstan, shall file an individual income tax declaration for other categories of individuals. Individuals shall use the above declaration to declare income and tax deductions, and calculate individual income tax.
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The bodies of the tax service shall use detailed information on types and amounts of income in declaration appendices and the calculation of a tax obligation, for tax control purposes. Declaration appendices may contain information on: 1) 2) 3) property and other types of income; the income of private notaries and advocates; income received from sources in foreign countries, including income received in a low-tax country, and also on amounts of foreign tax paid and foreign tax credits. This appendix may be broken down into individuals from whom this income has been received; income exempt from taxation in accordance with international treaties; the income of individuals with funds in accounts in foreign banks outside of the Republic of Kazakhstan, and the existence of funds in these accounts.
4) 5)
Article 68. Procedure for filing Tax Reporting 1. A taxpayer (tax agent) shall file tax reporting to the tax bodies in accordance with the procedure and within the deadline established by this Code. If a taxpayer is treated as eligible by the authorised body to apply various tax reporting forms, then the taxpayer should file tax reporting in the format stipulated for each relevant category of taxpayer. Taxpayers (tax agents) shall be entitled to file tax reporting, unless otherwise established by this article, with the relevant tax bodies: 1) in person: for tax reporting in hard copy; for monitoring reports electronically to allow computer processing of information; 2) 3) by registered mail with notification in hard copy; electronically to allow computer processing of information, through a data acquisition system.
2.
3.
Subpoint 2) of this point shall not cover monitoring reports filed by major taxpayers subject to monitoring. 4. Tax reporting should be filed in duplicate if being filed in person and in hard copy. One copy of tax reporting shall be returned to the taxpayer (tax agent) after being stamped by a tax body. The format of electronic tax reporting, software for compiling and filing tax reporting electronically and software updates shall be placed on the authorised bodys official site on a permanent basis no later than 20 working days before the deadline for filing tax reporting. After filing liquidation tax reporting a taxpayer (tax agent) shall not be entitled to file any subsequent tax reporting, except for additional and (or) additional reporting by notification, unless otherwise stipulated by this point. If a taxpayer (tax agent) reverses a liquidation decision after a tax audit, liquidation tax reporting filed for an incomplete tax period shall be regarded as regular tax reporting for the tax period. A taxpayer should file tax reporting for tax periods following the date liquidation tax reporting is filed with the relevant tax bodies in accordance with the procedure and within the deadline set by this Code. 7. Tax reporting shall not be filed in the absence of objects of taxation, except for tax reporting stipulated by articles 149, 162, 185, 270 and 364 of this Code. 63
5.
6.
The obligation to file tax reporting on value added tax shall apply to persons registered as payers of value added tax. 8. Appendices to declarations and statements shall not be filed if data to record in them does not exist.
Article 69. Procedure for recalling Tax Reporting 1. A taxpayer (tax agent) shall recall tax reporting from bodies of the tax service by filing an application to recall tax reporting with the tax body and (or) authorised body where the taxpayer (tax agent) has its record of registration. Tax reporting shall be recalled taking into account all additional tax reporting forms filed for the tax period in question. At the same time as recalling tax reporting the tax body where a taxpayer (tax agent) has its record of registration shall reverse taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions in the taxpayers (tax agents) personal accounts. 2. A taxpayer (tax agent) shall be entitled to file the tax application referred to in point 1 of this article to recall: 1) 2) incorrectly filed tax reporting; liquidation tax reporting when activities are renewed before a tax audit are conducted in accordance with articles 37, 38, 40-43 of this Code.
For the purpose of this article, incorrectly filed tax reporting shall be recognised as tax reporting forms that do not show and (or) show the following incorrectly: 1) 2) 3) 3. a currency code; a subsoil use contract number and date; a residency status.
A taxpayer (tax agent) may not recall incorrectly filed tax reporting for: 1) a tax period under audit during comprehensive and targeted audits for the taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions referred to in an instruction to conduct an audit; a disputed tax period before the deadline for appealing against and considering a notification on tax audit results and (or) decision of a higher body of the tax service issued after considering an appeal against notification, taking into account any renewed filing deadline.
2)
4.
Within five working days of the tax application referred to in point 1 of this article being filed, the tax bodies should recall tax reporting and notify the taxpayer (tax agent) of the recall of the tax reporting, using the form established by the authorised body.
Article 70. Introduction of Amendments and Additions to Tax Reporting 1. Taxpayers (tax agents) shall make amendments and additions to tax reporting by compiling additional tax reporting for the relevant tax period. Additional tax reporting should reflect the following in the relevant lines: 1) the difference between the amounts indicated in previously filed tax reporting and the actual tax obligation for the tax period if amounts in previously filed tax reporting have been changed; a new value if remaining data in previously filed tax reporting has been changed. 64
2.
2)
3.
When filing additional tax reporting, any taxes, other obligatory payments, obligatory pension contributions and social contributions discovered a taxpayer (tax agent) shall be payable to the budget without fines. A taxpayer (tax agent) shall be entitled to file additional liquidation tax reporting before a tax body starts a tax audit in accordance with a taxpayers application for liquidation or reorganisation by division or to cease activities. A taxpayer (tax agent) may not make changes and additions to tax reporting for: 1) a tax period under audit - during comprehensive and targeted audits for all taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions included in an instruction to conduct an audit; a disputed tax period before the deadline for appealing against and considering notification of tax audit results and (or) decision of a higher body of the tax service issued after considering an appeal against notification, taking into account any renewed deadline for filing an appeal against taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions referred to in the taxpayers (tax agents) appeal; the claim for a refund of value added tax.
4.
5.
2)
3)
Article 71. Authorised Bodys Extension of the Tax Reporting Filing Deadline 1. A major taxpayer subject to monitoring shall be entitled, no later than 10 working days before the filing deadline for monitoring reports referred to in article 624 of this Code, to file a tax application with the authorised body to extend the filing deadline for the reporting. After considering the tax application referred to in point 1 of this article, the authorised body should issue a decision within five working days of receiving it to refuse to extend the deadline for filing monitoring reports or to extend it. An extension to the filing deadline for monitoring reports shall be refused if a major taxpayer subject to monitoring has a tax debt outstanding at the date it files the tax application referred to in point 1 of this article, based on a certificate of (no) outstanding tax liability, obligatory pension contributions and social contributions, or a breach of the deadline for filing monitoring reports for the previous 12-month period. The authorised body shall be entitled to extend the filing deadline for monitoring reports by no more than three months from the initial filing deadline. If the authorised body refused to extend the filing deadline for monitoring reports, a major taxpayer subject to monitoring shall file reporting in accordance with the procedure established by this Code. If technical errors are discovered in software of the bodies of the tax service that impact the ability to file monitoring reports on time, the authorised body shall extend the filing deadline by no more than three months from the deadline set for the reporting in question.
2.
3.
4.
5.
6.
Article 72. Tax Bodys Extension of the Filing Deadline for Tax Reporting 1. A tax body shall extend the tax reporting filing deadline according to a taxpayers (tax agents) tax application, provided the reporting has been filed electronically, except for monitoring reports. A taxpayer (tax agent) shall file a tax application to extend a tax reporting filing deadline with the tax body at the place where a record of registration has been made, in duplicate, within 30 calendar days before the deadline set by this Code for filing tax reporting. One copy of a tax application shall be returned to the taxpayer (tax agent) with a tax body stamp. An extension to a tax reporting filing deadline shall apply to tax reporting filed by a taxpayer (tax agent) during the calendar year in which a tax application was filed with a tax body to extend the filing deadline for tax reporting.
2.
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3.
The filing deadline for tax reporting shall be extended: 1) for corporate income tax or individual income tax by no more than 30 calendar days from the filing deadline; for other taxes by no more than 15 calendar days from the deadline set for filing a declaration and (or) statement.
2)
An extension to a tax reporting filing deadline shall not apply to the deadline for filing a statement of advance payments stipulated by article 141 of this Code. 4. An extension to a tax reporting filing deadline shall not change the tax payment deadline.
Article 73. Procedure for a Taxpayer (Tax Agent) to suspend (extend, renew) the Filing of Tax Reporting 1. In accordance with the procedure established by this article, a taxpayer (tax agent) shall be entitled to file a tax application to suspend (extend, renew) the filing of tax reporting, to: 1) 2) 3) suspend the filing of tax reporting; extend the period for which filing of tax reporting has been suspended; renew the filing of tax reporting, unless otherwise stipulated by this article. If a taxpayer (tax agent) decides to suspend activities, it shall file a tax application with the tax body at its location to suspend (extend, renew) the filing of tax reporting for the forthcoming period. The filing of tax reporting shall not be suspended, including any extensions, for more than the period set by article 46 of this Code. At the same time as filing an application to suspend (extend, renew) the filing of tax reporting, a taxpayer (tax agent) shall file tax reporting for each tax, other obligatory payment to the budget, obligatory pension contributions and social contributions from the start of the tax period until the date activities are suspended as indicated in the application. 2. A tax body shall decide to suspend the filing of tax reporting or reject it within three working days from the date it receives a tax application to suspend (extend, renew) the filing of tax reporting. A taxpayer (tax agent) shall sign for or otherwise confirm dispatch and receipt of a decision to suspend the filing of tax reporting or to reject it personally. A decision to reject suspending the filing of tax reporting shall be adopted if a taxpayer (tax agent) has overdue taxes as at the date an application is filed or if the taxpayer (tax agent) fails to file the tax reporting referred to in point 1 of this article. If a tax body decides not to suspend the filing of tax reporting, taxpayers (tax agents) shall file tax reporting in accordance with the procedure established by this Code. A decision received by a taxpayer (tax agent) to suspend the filing of tax reporting shall be grounds for not filing tax reporting for the period indicated in a tax application to suspend (extend, renew) the filing of tax reporting, unless otherwise established by this article. The non-filing of the tax reporting referred to in this point shall equate to filing zero tax reporting. If a taxpayer (tax agent) decides to renew activities while activities are still suspended, the taxpayer (tax agent) in question shall file a tax application before the suspension ends with the tax body at its location to suspend (extend, renew) the filing of tax reporting and tax reporting in accordance with the procedure established by this Code. Once the period of suspension of activities referred to in a decision to suspend the filing of tax reporting has passed, a taxpayer (tax agent) should file one of the following documents with a tax body:
3.
4.
5.
6.
7.
8.
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1) 2) 9.
tax reporting in accordance with the procedure established by this Code; a tax application to extend the period of suspension of the filing of tax reporting.
When filing a tax application to suspend (extend, renew) the filing of tax reporting, the period shall be extended by the period referred to in the application, taking into account the provisions of point 1 of this article. A tax application shall be considered grounds for not filing tax reporting for future tax periods until the date activities are renewed, provided a tax body has confirmed receipt of the application.
10. If a tax body discovers that a taxpayer (tax agent) has performed activities during a period of suspension, the tax bodies shall revoke the suspension of the filing of tax reporting without notifying the relevant persons. 11. The provisions of this article shall not extend to the following taxpayers: 1) individual entrepreneurs applying the special tax regimes for farms or farm holdings, for small businesses based on a patent; individual entrepreneurs or legal entities that are payers of tax on the gaming business and (or) fixed tax; legal entities applying the special tax regime for legal entity agricultural manufacturers and rural consumer cooperatives.
2)
3)
12. This article shall not extend to the procedure and deadline for filing tax reporting on property tax, tax on means of transport and land tax, on the charge for the use of land plots. Article 74. Procedure for Individual Entrepreneurs applying the Patent Special Tax Regime for Small Businesses to suspend (extend, renew) the Filing of Tax Reporting 1. In accordance with the procedure established by this article a taxpayer (tax agent) shall be entitled, based on a tax application to suspend (extend, renew) the filing of tax reporting, to: 1) 2) suspend the filing of tax reporting; extend the period for which the filing of tax reporting has been suspended;
An individual entrepreneur applying the patent special tax regime who suspends activities shall file a tax application with the tax body at its location to suspend (extend, renew) the filing of tax reporting for the next period, until the patent expires. 2. A decision to suspend the filing of tax reporting shall be issued in the form established by the authorised body, on the day a tax application is filed. A decision to suspend the filing of tax reporting shall be served to a taxpayer or representative personally against a signature, or by other means that confirm dispatch and receipt. A decision to suspend the filing of tax reporting shall be grounds for not having to file a statement to receive a patent for the period from the date referred to in a tax application to suspend the filing of tax reporting until the date activities are restarted. A taxpayer shall be recognised as having renewed activities after a period of suspension passes, unless otherwise established by this article. A taxpayer shall be entitled to file a tax application to suspend (extend, renew) the filing of tax reporting until the end of the current suspension period. The application shall be grounds for not having to file a statement to receive a patent until the date in the application for renewing activities.
3.
4.
5.
6.
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7.
A taxpayer shall be entitled to renew activities before the end of the suspension of activities by filing a statement with the tax bodies to receive a patent for the period following the day activities are renewed. After filing a statement to receive a patent in a period when the filing of tax reporting has been suspended, a taxpayer shall be recognised as having renewed activities from the day the activities referred to in the statement are started. If a taxpayer does not file a tax application or statement to receive a patent as indicated in points 6 and 7 of this article, the taxpayers activities shall be recognised as having been renewed from the date the suspension period indicated in a tax application to suspend (extend, renew) the filing of tax reporting ends.
8.
9.
10. This article shall not extend to the procedure and deadline for filing tax reporting on property tax, tax on means of transport and land tax, on the charge for the use of land plots. 2. Tax Applications Article 75. General Provisions 1. A tax application shall be a document filed by a taxpayer (tax agent) with a body of the tax service to realise the taxpayers (tax agents) rights and fulfil obligations in those cases established by this Code. The forms of tax applications shall be approved by the authorised body.
2.
Article 76. Procedure for filing Tax Applications 1. A taxpayer (tax agent) shall file a tax application with the bodies of the tax service in accordance with the procedure and within the deadline established by this Code. Taxpayers (tax agents) shall be entitled to file a tax application, unless otherwise established by this Code, with the relevant bodies of the tax service, either: 1) 2) 3) in person in hard copy; by registered mail in hard copy; electronically, allowing computer processing of information - through the tax reporting acquisition system.
2.
3.
A taxpayer (tax agent) shall file hard copy tax applications personally in duplicate; one of which shall be returned to the taxpayer (tax agent) with confirmation of receipt from a tax body. The format of electronic tax reporting, software for compiling and filing a tax application electronically and software updates shall be placed on the authorised bodys official site not later than 1 January of the current year. Amendments and (or) additions shall be made to a tax application in those cases and in accordance with the procedure established by this Code.
4.
5.
3. Tax Registers Article 77. Tax Registers 1. A tax register shall be a taxpayer (tax agent) document containing data on objects of taxation and (or) objects relating to taxation.
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Tax registers shall be used to collate and systemise information for the tax accounting purposes referred to in point 3 of article 56 of this Code. Tax accounting data shall be generated by recording taxation information in chronological order to ensure the continuity of tax accounting data between tax periods (including operations where results are recorded over several tax periods, influence the size of an object of taxation in subsequent tax periods, or are carried forward for several years). Tax registers shall be kept as special forms. Taxpayers (tax agents) shall draw up tax register forms and the procedure for recording tax accounting data in them independently, except for tax register forms created by the authorised body, and shall be approved in a tax accounting policy. The legitimacy of business operations in tax registers shall be guaranteed by the individuals that signed them. 2. Tax registers shall comprise: 1) tax registers compiled by taxpayers (tax agents) independently using the forms established by the taxpayers (tax agents) in their tax accounting policy, taking into account the provisions of article 56 of this Code; tax registers compiled by taxpayers (tax agents) that are compiled using the forms and rules established by the authorised body.
2)
3.
Tax registers should contain the following obligatory details: 1) 2) 3) 4) the name of the register; a taxpayer (tax agent) identification number; the period for which the register has been compiled; the surname, name and patronymic (if applicable) of the individual responsible for compiling the register.
4.
The authorised body shall be entitled to establish tax register forms to record information on: 1) tax exemptions, reductions in income subject to corporate income tax, investment tax concessions; the balance value of groups (subgroups) of fixed assets and subsequent expenses on fixed assets; derivatives; tax invoices issued and received by payers of value added tax.
2)
3) 4) 5.
If tax registers are kept in hard copy form, errors corrected in them should be certified and confirmed by the signature of the individual responsible for making the correction, indicating the date and grounds for the correction. Tax registers shall be filed during documentary tax audits with officials of the bodies of the tax service in hard copy and (or) electronically at the discretion of the officials of the bodies of the tax service carrying out the audit.
6.
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Chapter 9. Characteristics of tax accounting

Article 78. Financial Lease 1. Property transferred under a lease agreement concluded in accordance with legislation of the Republic of Kazakhstan for a period of more than three years shall be regarded as a financial lease if it meets one of the following conditions: 1) the property transfers to the lessees ownership and (or) the lessee has the right to purchase the property at a fixed price as determined by the lease agreement; the financial lease period exceeds 75% of the useful life of the property being transferred to financial lease; the current (discount) value of lease payments for the total financial lease period exceeds 90% of the value of the property being transferred to financial lease.
2)
3)
For taxation purposes this type of transfer shall be regarded as the lessees purchase of property. In this respect, a lessee shall be regarded as the holder of the lease object, while lease payments shall be recognised as payments for a loan provided to the lessee. 2. If a lease agreement gives the lessee the right to extend the financial lease period, then the financial lease period shall be determined inclusive of the extension period. The value of property transferred to (received as) financial lease shall be determined at the date a lease agreement is concluded. Lease items to be received by a lessee as a tangible asset, investment in real estate and biological assets shall be regarded as property transferrable under financial lease. 4. The following shall not be recognised as a financial lease for taxation purposes: 1) lease transactions if the related lease agreements are annulled (obligations under a lease agreement) within three years from the date the related agreements are concluded, except for when: the lessee is recognised as bankrupt in accordance with legislation of the Republic of Kazakhstan on bankruptcy and has been removed from the state register of legal entities; an individual lessee has been recognised, based on a valid court decision, as missing or declared as deceased, incapable or of limited capability, classified as group I or II handicapped, and also in the event of an individual lessees death; a court officer ruling has entered into force on the return of court documents to a lessor due to the lessee having no recoverable property, including money, securities or income, and when measures stipulated by legislation of the Republic of Kazakhstan on enforcement proceedings and the status of court bailiffs and taken by a court bailiff to reveal property, including money, securities or income, have been without result; a court decision has entered into force not allowing a lessor to seize a lessees property, including money, securities or income; after a lease agreement has been annulled (obligations under a lease agreement cease), lease items are transferred to secondary lease in observance of the following conditions: a secondary lease agreement retains the conditions stipulated in an annulled lease agreement (lease agreement in which obligations have ceased), except for conditions for lease payment amounts and the lease period; total lease payments under a secondary lease agreement match lease payments from an annulled lease agreement (lease agreement in which obligations have ceased), reduced by 70
3.
lease payments receivable (received) from a lessee with whom a lease agreement has been annulled (obligations have been fulfilled); property is transferred to a secondary lease for at least three years; 2) lease transactions where total lease payments (under an agreement and (or) actual payments) for the first year of the lease agreement exceed 50% of the value of the lease item; lease transactions where the lessee has changed within three years from the date a lease agreement has been concluded, except for a change due to the reorganisation of the lessee; transactions to transfer property to a sublease.
3)
4)
Article 79. Long-Term Contracts 1. For the purpose of this article, a long-term contract shall be a production, installation or construction contract (agreement) that has not been concluded during a single corporate income tax period, and in which the production, installation and construction stipulated in the contract were started. Expenses incurred during a tax period under a long-term contract shall be deductible in accordance with articles 100-125 of this Code. A taxpayer shall use either the actual method or completion method to calculate income under long-term contracts. The method chosen to calculate income shall be recorded in a tax accounting policy and may not be changed while a contract remains valid. 4. Using the actual method, income under a long-term contract for the tax period shall be recognised as income receivable (received) for the reporting tax period, but should be no less than expenses incurred for the same period under a long-term contract. Under the completion method, income under a long-term contract for the reporting tax period shall be determined as the product of total income under a long-term contract and the completion percentage of the contract for the reporting tax period. In this respect, the completion percentage of a long-term contract shall be determined as the ratio of deductible expenses incurred in a reporting tax period against total expenses under a long-term contract deductible in accordance with this Code, for the period of validity of the contract. Article 80. Joint Activities 1. If an agreement has been reached to perform joint activities or one that stipulates two or more parties to an agreement to perform joint activities without creating a legal entity (hereafter joint activity agreement), objects of taxation and (or) objects relating to taxation shall be recorded and taxed for each party separately in accordance with the procedure established by this Code. Each party to a joint activity agreement shall, with regard to its share, record assets, liabilities, income and expenses from joint activities to determine objects of taxation and (or) objects relating to taxation. If a joint activity agreement does not include a procedure for allocating assets, liabilities, income and expenses from joint activities to determine objects of taxation and (or) objects relating to taxation, the parties to the joint activity agreement shall develop and approve a tax accounting policy for joint activities before initial tax reporting is filed, and which should record the procedure and obligation arising as a result of joint activities. A joint activity agreement may appoint an authorised representative for the parties to the joint activity agreement who should be responsible for the related tax accounting, or a part of them.
2.
3.
5.
2.
3.
4.
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For tax purposes assets, liabilities, income and expenses from joint activities or a part of them shall be recorded by the authorised representative of parties to a joint activity agreement separately from the assets, liabilities, income and expenses related to the authorised representatives other activities. Assets, liabilities, income and expenses from joint activities shall be allocated to determine the objects of taxation and (or) objects relating to taxation between the parties to a joint activity agreement and (or) their authorised representative for each tax period in accordance with the procedure stipulated by the joint activity agreement. If the conditions of a joint activity agreement and (or) tax accounting policy for joint activities do not stipulate a procedure for allocating assets, liabilities, income and expenses to identify objects of taxation and (or) objects relating to taxation, the parties to a joint activity agreement and (or) the authorised representative of these parties shall make the allocation in question in proportion to their share in the joint activity agreement. The results of allocating assets, liabilities, income and expenses to identify objects of taxation and (or) objects relating to taxation between the parties to a joint activity agreement should be drawn up in writing, signed by all parties to the joint activity agreement and (or) their authorised representative, if applicable, and also stamped (if applicable in those cases established by legislation of the Republic of Kazakhstan). Each party to a joint activity agreement should file a document detailing the results of asset, liability, income and expense allocation with the bodies of the tax services during a documentary tax audit. The authorised representative of parties to a joint activity agreement should possess copies of all documents used as the basis to allocate assets, liabilities, income and expenses.
6.
Section 4. Corporate income tax Chapter 10. General provisions

Article 81. Payers 1. Resident legal entities of the Republic of Kazakhstan, except for state institutions, as well as nonresident legal entities operating in the Republic of Kazakhstan through a permanent establishment or receiving income from sources in the Republic of Kazakhstan shall be recognised as payers of corporate income tax. Legal persons applying the special simplified declaration tax regime shall calculate and pay corporate income tax on applicable income, in accordance with chapter 61 of this Code. Payers of tax on the gaming business and fixed tax shall not be recognised as payers of corporate income tax on income from the activities referred to in articles 411 and 420 of this Code.
2.
3.
Article 82. Objects of Taxation The following shall constitute objects of taxation with respect to corporate income tax: 1) 2) 3) taxable income; income taxable at the source of payment; the net income of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment.
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Chapter 11. Taxable income

Article 83. Taxable Income Taxable income shall be defined as the difference between aggregate annual income, inclusive of adjustments provided for under article 99 of this Code, and deductions stipulated by this section. 1. Aggregate Annual Income Article 84. Aggregate Annual Income 1. A resident legal entitys aggregate annual income shall consist of income receivable (received) by the person both in the Republic of Kazakhstan and abroad during a tax period. The aggregate annual income of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall consist of the income referred to in article 198 of this Code. Income from sources outside of the Republic of Kazakhstan and receivable by a resident legal entity shall be taxable in accordance with the procedure established by this section and chapter 27 of this Code. 2. The following shall not be considered as income for taxation purposes: 1) 2) 3) the value of property received as a contribution to charter capital; funds received by an issuer from shares issued by it; unless otherwise stipulated by this Code, for a taxpayer transferring property free of charge, the value of the property transferred free of charge. The value of work performed and services provided free of charge shall equal expenses incurred in performing the work and providing the services; the value of a reduction of tax obligations in those cases stipulated by this Code; unless otherwise stipulated by this Code, income arising from a change in the value of assets and (or) liabilities that has been recognised as income in accounting in accordance with international financial reporting standards and requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, except for that receivable (received) from a different person; an increase in retained earnings due to a reduction in provisions for the revaluation of assets in accordance with international financial reporting standards and requirements of accounting and financial reporting legislation of the Republic of Kazakhstan.
4) 5)
6)
Article 85. Income included in Aggregate Annual Income 1. A taxpayers aggregate annual income shall include all forms of its income, including: 1) 2) 3) 4) 5) realisation income; capital gains; income on derivatives; income from the write-off of liabilities; income from doubtful debts;
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6)
income from a reduction in the provisions of banks and organisations performing certain banking operations based on a license; income from a reduction in insurance reserves created by insurance and reinsurance organisations under insurance and reinsurance agreements; income from the assignment of a debt claim; income received from an agreement to limit or end business activities;
7)
8) 9)
10) income from the retirement of fixed assets; 11) income from an adjustment to expenses for geological study and preparatory work to produce natural resources, and also other subsoil expenses; 12) income from amounts allocated to a field recovery fund that exceeds actual expenses to mitigate the consequences of field development; 13) income from joint activities; 14) fines, late payment interest and other forms of sanctions, either imposed against or acknowledged by a debtor, except for unlawfully imposed fines refunded from the budget, if these amounts have not already been deducted; 15) compensation received for prior deductions; 16) income from property received free of charge; 17) dividends; 18) interest on deposits, debt securities and bills of exchange; 19) income from a positive exchange difference exceeding a negative exchange difference as determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan; 20) winnings; 21) income from operating social sphere facilities; 22) income from the sale of an enterprise as a property complex; 23) net income from the trust management of property received (receivable) by a settler under a trust agreement or beneficiary in other trust management cases; 24) other income not referred to in subpoints 1)-23) of this point. 2. If the same income can be recorded in several income items, the income in question shall be included in aggregate annual income once only. When the income recognition date in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan differs from the income recognition date in accordance with this Code, the income in question shall be recorded for taxation purposes only once. In this respect, the income recognition date for taxation purposes shall be determined in accordance with the provisions of this Code. 3. For the purposes of this section, if a property trust settlement act requires that a taxpayer, who is a trust manager, fulfil a tax obligation for the settler or beneficiary, the taxpayers aggregate annual income shall include the property trust agreement income of the settler or beneficiary in other trust management cases.
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4.
A taxpayer shall be entitled to adjust income in accordance with articles 131 and 132 of this Code.
Article 86. Realisation Income 1. Realisation income shall be the value of realised goods, work performed or services provided, except for income included in aggregate annual income in accordance with articles 87-98 of this Code, unless otherwise stipulated by transfer pricing legislation of the Republic of Kazakhstan. The value of realised goods, work performed and services provided shall not include value added tax and excise duty. 2. For the purposes of this section, income from the provision of services shall also include: 1) 2) 3) 4) income in the form of loan (microcredit) interest, from REPO transactions; interest income from transferring property to financial lease; royalties; income from leasing property.
Article 87. Capital gains 1. Capital gains is generated from realising non-depreciable assets, except for assets redeemed for state needs in accordance with legislative acts of the Republic of Kazakhstan. For the purposes of this article, non-depreciable assets shall be: 1) 2) 3) 4) 5) 6) 7) land plots; construction in progress; uninstalled equipment; assets with a service life of more than one year and that are not being used to generate income; securities; participation interest; tangible assets whose value has already been deducted in full in accordance with tax legislation of the Republic of Kazakhstan in force prior to 1 January 2000; fixed assets commissioned as part of investment projects under contracts concluded before 1 January 2009 in accordance with legislation of the Republic of Kazakhstan on investments, the value of which has been deducted in full; property treated as social sphere objects in accordance with point 2 of article 97 of this Code.
8)
9) 2.
Capital gains shall be defined as the difference between the realisation value of non-depreciable assets and their original value, except for those cases stipulated by points 4 and 9 of this article. For the purposes of this article original value of non-deductible assets, except for securities and participation interest shall be understood as the total purchase, production, construction and assembly costs of assets, and also other costs increasing their value, including after purchase, in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, except for costs (expenses): that are non-deductible in accordance with this Code;
3.
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which the taxpayer is entitled to deduct on the basis of points 6, 12 and 13 of article 100 of this Code, and also articles 101-114 of this Code; depreciation rates; in accounting records and not regarded as an expense for taxation purposes in accordance with point 15 of article 100 of this Code. 4. Capital gains from the realisation of securities and participation interest shall be: 1) for securities, except for debt securities, and participation interest - a positive difference between the realisation price and original value (contribution); for debt securities a positive difference, less coupon, between the realisation value and original value, taking into account a depreciation discount and (or) premium at the realisation date.
2)
5.
For the purposes of this article the original value of securities and participation interest shall be total actual purchase costs, purchase costs that increase the value of securities and participation interest in those cases stipulated by international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, as well as the value of charter capital contributions. Unless otherwise established by this article, a charter capital contribution shall be valued as determined in accordance with civil legislation of the Republic of Kazakhstan. When a taxpayer who, in accordance with this Code, does not take deductions on fixed assets, makes charter capital contributions in the form of residential premises, dacha buildings, garages or small holdings it has owned for a year or more, the value of the charter capital contribution shall be the value of the property provided as determined in accordance with civil legislation of the Republic of Kazakhstan. When a taxpayer who, in accordance with this Code, does not take deductions on fixed assets, makes charter capital contributions in the form of property not indicated in point 7 of this article, the value of the charter capital contribution shall be the purchase, production, construction, assembly and installation cost of the property paid to charter capital. In the absence of any purchase, production, construction, assembly and installation cost of property paid to charter capital, the contribution value shall be the market value of the property at the moment ownership rights to it arise. For the purposes of this point, market value shall be the value determined in an appraisal report drawn up under an agreement between an appraiser and taxpayer in accordance with legislation of the Republic of Kazakhstan on evaluation activities. A taxpayer should determine the market value of property not later than the deadline for filing a corporate income tax declaration.
6.
7.
8.
9.
After realising the assets indicated in subpoints 7) and 8) of point 1 of this article, capital gains shall be determined as the realisation value.
10. If non-depreciable assets were received free of charge, then for the purposes of this article original value shall be understood as asset value included in total aggregate income in the form of the value of property received free of charge in accordance with this Code. Article 88. Income from a Write-Off of Liabilities 1. Income from a write-off of liabilities shall refer to: 1) 2) a creditor writing off a taxpayers liabilities; liabilities not claimed by a creditor at the moment a liquidation balance sheet is approved for taxpayer liquidation;
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3)
liabilities written off due to the statute of limitation established by legislative acts of the Republic of Kazakhstan expiring; liabilities written off according to a valid court decision.
4) 2.
Income generated from writing off liabilities shall equal liabilities payable at the moment of write-off, in accordance with the taxpayers primary documentation. Obligations recognised as doubtful in accordance with this Code shall not be covered by points 1 and 2 of this article. Income from writing off liabilities shall not be generated from reducing liabilities due to transfer under an agreement to sell an enterprise as a property complex.
3.
4.
Article 89. Income from Doubtful Debts Liabilities arising on purchased goods, work or services, or from income or other payments accrued to employees in accordance with point 2 of article 163 of this Code, if they have not been settled within three years from the date they arise, shall be regarded as doubtful. These liabilities shall be included in a taxpayers aggregate annual income up to the value of liabilities already deducted, except for value added tax to be recovered from budget settlements at the rate in force when the debt initially arose, in proportion to actual liabilities already deducted. Article 90. Income from a Reduction in the Size of Provisions 1. Income from a reduction in the size of provisions created by a bank or organisation performing specific banking operations based on a license, unless otherwise stipulated by this article, shall be recognised as: 1) provisions (reserves) already deducted, if a debtor has executed a claim to the required amount; provisions (reserves) already deducted, if the volume of claims against a debtor has been reduced based on a settlement agreement, novation agreement, a debt claim has been assigned through an assignment agreement and (or) other reasons stipulated by legislation of the Republic of Kazakhstan; already deducted provisions (reserves) have been reduced due to claims being reclassified.
2)
3) 2.
Previously deducted provisions (reserves) shall not be recognised as income from a reduction in the size of provisions (reserves) created by a bank or organisation performing certain banking operations based on a license if the claims against a debtor have been reduced for the following reasons: 1) a legal entity debtor has been removed from the state register of legal entities due to its liquidation in accordance with a court decision and for the reasons established by legislative acts of the Republic of Kazakhstan; based on a valid court decision an individual debtor has been recognised as missing or declared as deceased, incapable or of limited capability, classified as group I or II handicapped, and also in the event of an individual lessees death; a court officer ruling has entered into force on the return of court documents to a bank or organisation performing certain licensed banking operations when a debtor or third parties jointly liable with the debtor to the bank or organisation performing certain licensed banking operations have no recoverable property, including money, securities or income, and when measures stipulated by legislation of the Republic of Kazakhstan on enforcement proceedings and the status of court bailiffs and taken by a court bailiff to reveal property, including money, securities or income, have been without result;
2)
3)
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4)
a court decision has entered into force rejecting the request of a bank or organisation performing certain licensed banking operations to recover property, including a debtors money, securities or income.
3.
A reduction in the size of insurance provisions created and previously deducted to the amount and in accordance with the procedure established by this Code shall be recognised as income from a reduction in the size of insurance provisions created by an insurance or reinsurance organisation under insurance or reinsurance agreements.
Article 91. Income from the Assignment of a Debt Claim Income from the assignment of a debt claim shall be: 1) for the taxpayer acquiring the debt claim - positive difference between the debt from a debtor in accordance with a claim to a principal debt, including any amounts exceeding the principal debt at the date the debt claim is assigned, and the purchase cost of the receivable; for the taxpayer who has assigned the debt claim - positive difference between the value of the assigned debt claim and the value of a debtors claim at the date the debt claim is assigned according to the taxpayers primary documents.
2)
Article 92. Income from the Retirement of Fixed Assets If the value of retired fixed assets from a particular subgroup (group I) or group (groups II, III and IV) determined in accordance with article 119 of this Code exceeds the balance value of the subgroup (group I) or group (groups II, III and IV) at the start of the tax period, taking into consideration the value of fixed assets recorded in the tax period, the excess shall be included in aggregate annual income. The balance value of a subgroup (group I) or group (groups II, III and IV) at the end of the tax period shall equal zero. Article 93. Income from an Adjustment to Geological Study and Preparation Expenses to produce Natural Resources, and also other Subsoil User Expenses If income, which, in accordance with article 111 of this Code, is used to adjust expenses forming a separate group, exceeds the value of the latter at the start of the tax period, inclusive of expenses incurred in a tax period, the excess shall be included in aggregate annual income. The value of this group at the end of the tax period should equal zero. Article 94. Income from Contributions to a Field Recovery Fund that exceed Actual Expenses used to mitigate the Consequences of Field Development 1. If actual field recovery expenses are lower than contributions to the related fund, the difference shall be included in the subsoil users aggregate annual income. If a subsoil user does not perform field recovery work within the period stipulated by a field recovery programme approved by the relevant state authority, amounts transferred to the field recovery fund and deducted shall be included in aggregate annual income for the same tax period in which they were incurred.
2.
Article 95. Compensation received for prior Deductions 1. The following shall be regarded as income received as compensation for prior deductions: 1) receivables regarded as doubtful and already deducted, but subsequently compensated in subsequent tax periods; amounts received from the state budget to cover costs (expenses);
2)
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3)
damages paid by an insurance company or person that has caused harm, except for the insurance payments referred to in article 119 of this Code; other compensation received to refund costs that have already been deducted. Any compensation received shall be considered as income from the tax period in which it was received.
4)
2.
Insurance premiums to be refunded (recoverable) to an insured party by an insurance organisation when a non-cumulative insurance agreement expires or is terminated early, and when the insured party has deducted the premiums, shall be treated as aggregate annual income for the tax period in which they were refundable or were refunded to the insured party.
Article 96. Property received Free of Charge The value of any property, including work and services received by a taxpayer free of charge, shall be regarded as its income. Unless otherwise established by this Code, the value of property received free of charge, including work and services, shall be determined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan. The value of property, including work and services, received in accordance with point 11 of article 100 of this Code shall not be recognised as property received free of charge. Article 97. Income received from operating Social Sphere Facilities 1. 2. Social sphere facilities shall include property to which a taxpayer has ownership rights and which it uses to perform the types of activities stipulated by this article. A taxpayers aggregate annual income shall include income receivable (received) that exceeds actual expenses incurred in using social sphere facilities to perform: 1) 2) medical activities; activities in pre-school education and study; elementary, basic, secondary, further comprehensive education; basic, secondary, higher and post-graduate vocational education; retraining and professional development; activities in science, physical culture and sport; culture; provide services to maintain historical and cultural legacy; archive valuables; and also in the social welfare and protection of children, the elderly and handicapped individuals; activities to organise leisure activities for employees, their family members, employees and family members of affiliates, and also to maintain the housing fund.
3)
4) 3.
Income received from using social sphere facilities in employee catering; pre-school education; to ensure the social welfare and protection of children, the elderly and handicapped shall be included in aggregate annual income.
Article 98. Income (Loss) from the Sale of an Enterprise as a Property Complex 1. Income from the sale of an enterprise as a property complex shall be calculated as a positive difference between the realisation value in an agreement to sell an enterprise as a property complex and the book value of the transferrable assets reduced by the book value of transferrable liabilities, according to accounting data at the realisation date. A loss from the sale of an enterprise as a property complex shall be calculated as a negative difference between the realisation value from an agreement to sell an enterprise as a property complex and the book value of the transferrable assets reduced by the book value of transferrable liabilities, according to accounting data at the realisation date. A loss from the sale of an enterprise as a property complex shall be carried forward in accordance with the procedure established by article 137 of this Code.
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Article 99. Adjustments to Aggregate Annual Income 1. The following shall be excluded from taxpayers aggregate annual income: 1) dividends, except those payable by the closed mutual investment funds of a risk investment and the joint stock investment funds of a risk investment; obligatory calendar, additional and emergency bank deposits received by an organisation responsible for the obligatory guarantee of individuals deposits; obligatory, additional and emergency insurance organisation contributions received by the fund for the guarantee of insurance payments; funds received by an organisation responsible for the obligatory guarantee of individuals deposits, and the fund for the guarantee of insurance payments, in accordance with the procedure for settling their claims with respect to refunded deposits, as well as guarantee and compensation payments; investment income received in accordance with pension legislation of the Republic of Kazakhstan and sent to individual pension accounts; investment income received in accordance with legislation of the Republic of Kazakhstan on obligatory social insurance and used to increase the assets of the State Social Insurance Fund; investment income received by unit and joint stock investment funds in accordance with legislation of the Republic of Kazakhstan on investment funds in accounts in custodian banks, and investment income in them; income from assigning a debt claim, which is received by special financial companies with respect to securitisation transactions in accordance with legislation of the Republic of Kazakhstan on securitisation; net income from property trust management received (receivable) by a settler under a property trust management agreement or by a beneficiary in other trust management cases;
2)
3)
4)
5)
6)
7)
8)
9)
10) annual obligatory contributions received by the fund for underwriting cotton receipts from cotton production organisations; 11) annual obligatory contributions received by the fund for underwriting grain receipts from grain reception companies; 12) funds received by the fund for underwriting cotton (grain) receipts in accordance with the procedure for meeting claims on guarantee payments made. 2. When transferring to an inventory valuation method that differs from the one applied by a taxpayer in a previous tax period, a taxpayers aggregate annual income shall either be increased or decreased by the difference received as a result of applying the new valuation method. A taxpayer shall transfer to a different inventory valuation method at the start of a tax period. 2. Deductions Article 100. Deductions 1. A taxpayers expenses incurred during the course of activities directed to the generation of aggregate annual income shall be deductible for taxable income purposes, except for those expenses that are not deductible in accordance with this Code. In those cases stipulated by this Code deductible expenses should not exceed the established limits.
2.
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3.
A taxpayer may deduct expenses provided that documentation is available to support expenses incurred to generate aggregate annual income. These expenses shall be deductible in the same tax period in which they were actually incurred, except for prepaid expenses as defined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan. Prepaid expenses shall be deducted in the tax periods to which they relate. Losses incurred by natural monopolies shall be deductible up to the limit established by legislation of the Republic of Kazakhstan. If the same expenses fall into more than one expense category, then the expenses in question shall be deducted only once when calculating taxable income. Only recognised or imposed fines, late payment interest and forfeits shall be deductible unless otherwise established by articles 103 and 115 of this Code. Interest on construction loans accrued during the construction period shall be included in the value of the object of construction. If an authorised representative of the parties to a joint activity agreement is responsible for tax accounting then expenses from joint activities or a part of joint activities should be deductible based on data provided by the representative in question.
4. 5.
6.
7.
8.
9.
10. A taxpayers costs to construct and purchase fixed assets, as well as other major costs shall be deductible in accordance with articles 116-125 of this Code. 11. Expenses incurred when operating the social sphere facilities referred to in point 3 of article 97 of this Code shall be deductible. 12. If transaction conditions require that a taxpayer guarantee the quality of goods realised, work performed or services provided, then the taxpayers actual expenses to correct any defects in goods realised, work performed or services provided, which were incurred during the transaction warranty period, shall be deductible in accordance with this Code. 13. Value added tax not subject to an offset according to a value added tax declaration in accordance with article 260 of this Code shall be deductible. 14. Deductions shall be made in a tax period that includes the value added tax period for which a value added tax declaration is being filed. 15. When a taxpayer is deregistered for value added tax purposes, any value added tax offset exceeding value added tax accrued as at 1 January 2009, which has not been offset against future payments of value added tax, and which has not been claimed for refund on turnover taxed at the zero rate, shall be deducted once the requirements referred to in point 2 of article 230 of this Code have been met. 16. Private entrepreneurs membership fees paid by taxpayers to associations of private entrepreneurs in accordance with the Law of the Republic of Kazakhstan On Private Business Activities shall be deductible up to the value of the monthly calculation index set by the law on the state budget for the relevant financial year, for one employee, based on average employee numbers for the year. 17. Unless otherwise stipulated by this Code, expenses, except for expenses payable (paid), in accounting due to a change in the value of assets and (or) liabilities in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan shall not be regarded as expenses for taxation purposes. 18. Expenses incurred on derivatives shall be recorded in accordance with the provisions of this Code. 19. For the purposes of this section, if a property trust settlement act requires that a trust manager fulfil a tax obligation for a settler or beneficiary, the trust managers aggregate annual income shall
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include the property trust agreement income of the settler or beneficiary in other trust management cases. 20. A taxpayer shall be entitled to adjust deductions in accordance with articles 131 and 132 of this Code. Article 101. Deduction of Business Trip Compensation 1. The following shall qualify as deductible business trip compensation: 1) actual expenses incurred on business trip outward and return journeys, including any reservation expenses, based on documents supporting travel and reservation expenses (including electronic tickets if confirmation of payment is available); actual accommodation expenses incurred, including any reservation expenses, based on documents confirming accommodation and reservation expenses; per diems payable for each day spent on a business trip, up to the amount established by a taxpayers decision. The amount of time spent on a business trip shall be determined on the basis of: an employers written business trip order; the number of days spent on a business trip based on departure and arrival dates in travel documents to and from the business trip destination. In the absence of these documents, the number of business trip days shall be determined using other documents confirming departure and arrival dates to and (or) from a business trip destination as stipulated by a taxpayers tax accounting policy; 4) a taxpayers expenses incurred when registering an entry visa (visa cost, consular services, obligatory medical insurance), based on documents confirming expenses incurred to register an entry visa (visa cost, consular services, obligatory medical insurance).
2)
3)
Article 102. Deduction of Hospitality Expenses 1. Hospitality expenses shall include expenses incurred to serve persons, including individuals not employed by the taxpayer, to: 1) 2) establish or maintain mutual cooperation; organise and hold meetings of boards of directors, other management bodies, except for executive bodies, irrespective of their location.
Hospitality expenses shall include transportation expenses for the above individuals; catering expenses during talks, and also expenses for interpreting services not provided in-house by an organisation. Recreation, entertainment or leisure expenses shall not be recognised as hospitality expenses and shall not be deductible. 2. Hospitality expenses shall be deductible up to a maximum of 1% of employment compensation expenses as determined in accordance with article 163 of this Code, exclusive of hospitality expenses.
Article 103. Interest Deductions 1. Interest shall be deductible in accordance with the provisions of this article. For the purposes of this article interest shall be recognised as: 82
1) 2) 3) 2.
interest as defined by article 12 of this Code; forfeits (fines, late payment interest) under a loan agreement between related parties; charge for a guarantee to a related party.
Interest shall be deducted within the limits calculated using the following formula: (A+E)+(EC/L)*(MC)*(B+C+D), where: A is interest as defined by point 1 of this article, except for the amounts in B, C, D and E; B is interest payable to a related party, except for the amounts included in E; C is interest payable to persons registered in a low-tax country as defined in accordance with article 224 of this Code, except for amounts included in B; D is interest payable to an independent party on loans secured by related party deposit, guarantee, surety or other form of collateral, if a guarantee, surety or other form of security have been executed, except for amounts included in C; E is interest for loans to loan societies created in the Republic of Kazakhstan; MC is a marginal coefficient; EC is annual average equity capital; L is annual average liabilities. Interest on construction loans received and accrued in the construction period shall not be used in calculating A, B, C, D and E. For the purposes of this article, an independent party shall be recognised as a party that is not a related party.
3.
For the purposes of point 2 of this article: 1) average annual equity capital shall equal arithmetic equity capital at the end of each month of the reporting tax period; average annual liabilities shall equal average arithmetic maximum liabilities for each month of the reporting tax period. The following accrued liabilities shall not be considered when calculating annual average liabilities on: taxes, fees and other obligatory payments to the budget; salaries and other employee income; unearned income, except for income from a related party; interest and commission; dividends; 3) the marginal coefficient for financial organisations shall equal 7, for other legal entities it shall equal 4.
2)
4.
For the purposes of point 2 of this article, the equity capital of a permanent establishment of a nonresident legal entity in the Republic of Kazakhstan shall be determined as the difference between the permanent establishments assets and liabilities. 83
For the purposes of this point the equity capital of a non-resident legal entitys permanent establishment in the Republic of Kazakhstan shall be viewed as if the permanent establishment were a separate legal entity and acting independently of its non-resident legal entity. Article 104. Deductions of Doubtful Debts paid If a taxpayer pays a doubtful debt that was previously recognised as income to a creditor, a deduction shall be permitted to the value of the payment made. This deduction shall be taken up to the amount previously regarded as income in the same tax period in which the payment was made. The procedure for taking deductions stipulated by this article shall also be applied if liabilities that were previously recognised as income in accordance with article 88 of this Code are paid. Article 105. Deductions on Doubtful Claims 1. Doubtful claims shall be those arising as a result of realising goods, performing work or providing services to legal entities and individual entrepreneurs, and also to non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment, branch or representative office, and which have not been settled within three years from the date a claim was initially raised. Claims arising from goods realised, work performed or services provided, and which have not been settled due to a taxpayer-debtor having been declared bankrupt in accordance with legislation of the Republic of Kazakhstan, shall also be regarded as doubtful claims. A claim recognised as doubtful in accordance with this Code shall be deductible. A taxpayer shall deduct doubtful claims, at the same time ensuring: 1) 2) documents are available to support a claim; claims were accounted for at the moment deductions were taken or the claims were recorded as expenses (written off) in accounting in previous periods.
2.
3.
Where a debtor is declared bankrupt, a court verdict on the conclusion of bankruptcy proceedings should be provided in addition to the documents specified in point 2 of this article. Providing the above conditions have been met, a taxpayer shall be entitled to deduct a doubtful claim at the end of the tax period in which a court verdict on the conclusion of bankruptcy proceedings entered into force. Doubtful claims shall be deducted up to the limits of income previously recognised from goods realised, work performed or services provided.
4.
Article 106. Deductions on Contributions to Reserve Funds 1. Banks and licensed organisations performing loan operations shall be entitled to deduct expenses used to create provisions (reserves) against the following doubtful or bad assets, conditional liabilities, except for assets and conditional liabilities provided in favour of affiliates or third parties with respect to their liabilities (except for loan companies assets and conditional liabilities): 1) 2) 3) 4) deposits, including balances in correspondent accounts in other banks; credit (except for a financial lease) provided to other banks and clients; accounts receivable based on documented calculations and guarantees; conditional liabilities on unsecured letters of credit issued or confirmed by guarantees.
The procedure for treating assets and conditional liabilities as doubtful or bad shall be determined by the authorised state body for the regulation and control of the financial market and financial organisations in agreement with the authorised state body.
84
2.
Insurance and reinsurance organisations shall be entitled to deduct expenses used to create insurance provisions under insurance and reinsurance agreements. The procedure for creating insurance provisions shall be determined by the authorised state body for the regulation and control of the financial market and financial organisations, as agreed with the authorised body. Microcredit organisations shall be entitled to deduct expenses incurred in creating provisions against doubtful and bad microcredit, conditional liabilities and bad microcredit, except for microcredit and conditional liabilities on microcredit provided to related parties or third parties with respect to related parties liabilities, up to 15% of microcredit provided during the tax period. The procedure for classifying microcredit and conditional liabilities on microcredit provided as doubtful and bad, and also the procedure for creating provisions shall be determined by microcredit organisations accounting policies, which should be developed in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan.
3.
Article 107. Deductions on Field Recovery Expenses and Contributions to Liquidation Funds 1. A subsoil user operating under a subsoil use contract concluded in accordance with the procedure established by legislation of the Republic of Kazakhstan shall be entitled to deduct contributions to a liquidation fund from aggregate annual income. A subsoil user shall be permitted to deduct up to the value of contributions made for the tax period to a special escrow account in any bank in the Republic of Kazakhstan. The size of and procedure for making contributions to a liquidation fund shall be established by a subsoil use contract. If the authorised state body for subsoil issues discovers that a subsoil user has used funds intended for a liquidation fund inappropriately, the funds shall be included in the subsoil users aggregate annual income for the tax period in which it was used, or in which the use was discovered and not corrected,. The same shall be true if the statute of limitation set by article 46 of this Code has been exceeded. 2. A subsoil users field recovery expenses actually incurred during a particular tax period shall be deducted in the same tax period in which they were incurred, except for those from a recovery fund placed in an escrow account. A taxpayer shall be entitled to deduct from its aggregate annual income contributions to landfill site recovery funds that have been transferred to an escrow account in any commercial bank in the Republic of Kazakhstan. The size of and procedure for making contributions to landfill site recovery funds, and also the procedure for using money transferred to a fund shall be established in accordance with legislation of the Republic of Kazakhstan. If the relevant authorised state body discovers a taxpayers inappropriate use of landfill site recovery funds, any funds used shall be included in the taxpayers aggregate annual income for the same tax period in which the funds were used. Article 108. Deductions of Scientific Research, and Research Technology Expenses Scientific research and research technology expenses, except for expenses to purchase fixed assets, install them and other capital costs, shall be deductible. Support for deducting these expenses shall be technical specifications for scientific research and research technology, as well as acts of acceptance for each completed stage of work. Article 109. Deduction of Insurance Premium Expenses and Contributions to Underwriting Systems
3.
1.
Insurance premiums payable or paid by an insured party according to an insurance agreement, except for insurance premiums relating to cumulative insurance agreements, shall be deductible. 85
2.
Banks participating in the system to underwrite individuals investments shall be entitled to deduct obligatory regular, additional or emergency payments made to secure individuals investments. Insurance and reinsurance organisations participating in the system to underwrite insurance payments shall be entitled to deduct obligatory, additional or emergency payments made to secure insurance payments. Cotton processing organisations participating in the system to underwrite cotton receipts shall be entitled to deduct annual obligatory contributions transferred to secure cotton receipts. Grain reception centres participating in the system to underwrite grain receipts shall be entitled to deduct annual obligatory contributions transferred to secure grain receipts.
3.
4.
5.
Article 110. Deduction of Expenses on accrued Employee Income and other Payments to Individuals 1. An employers expenses on the employee income indicated in point 2 of article 163 of this Code shall be deductible, except for expenses: included in the original value of fixed assets and preference objects; recognised as subsequent expenses in accordance with point 3 of article 122 of this Code; included in the original value of non-depreciable assets in accordance with article 87 of this Code. Employee income in the form of employer expenses used in accordance with legislation of the Republic of Kazakhstan in the training, professional development or retraining of employees in their speciality, which should be related to the employers production activities, shall be deductible. 2. Taxpayer expenses in the form of payments to individuals as determined by subpoints 2), 3), 7), 9)12), 14) and 17) of point 3 of article 155 of this Code shall be deductible. Voluntary professional pension contributions made by a taxpayer in accordance with a voluntary pension agreement shall be deductible up to the amounts established by pension legislation of the Republic of Kazakhstan.
3.
Article 111. Deductions for Expenses incurred in Geological Surveying and Preparation to extract Natural Resources, and other Subsoil User Deductions 1. If after a commercial discovery, but before starting production, a subsoil user incurs geological surveying, exploration and preparation expenses to extract mineral resources, including evaluation and development expenses, general administrative expenses, signature and commercial discovery bonuses, as well as expenses to purchase tangible assets and intangible assets, and also other expenses considered deductible in accordance with this Code, the expenses shall form a separate group of depreciable assets. These expenses shall be deducted from aggregate annual income in the form of depreciation rates from the moment production is started after a commercial discovery of mineral resources. Depreciation rates shall be calculated by applying depreciation rates fixed at the subsoil users discretion, but which should be no higher than 25% of accrued expenses for the depreciable asset group as stipulated by this point at the end of the tax period. If subsoil activities are concluded under a specific subsoil use contract, the balance value of the depreciable asset group at the end of the previous tax period shall be deductible. For the purposes of this article, production after a commercial discovery shall signify: 1) for exploration contracts, joint exploration and production contracts with unproven mineral resource reserves when extraction of mineral resources starts after reserves have been proven by the relevant authorised body of the Republic of Kazakhstan; for joint exploration and production contracts where mineral resources are on the state balance sheet and have been proven by an expert conclusion of the relevant authorised state body, 86
2)
including reserves requiring additional geological study and geological-economic valuation the moment mineral resources are produced after the relevant contracts have been concluded, if stipulated by the work programme in the contract and approved by the authorised state body for the study and use of the subsoil. 2. The expenses referred to in point 1 of this article shall be reduced by a subsoil users income received by within the framework of a concluded subsoil use contract, as follows: 1) during geological surveying and extraction preparation, except income excluded from aggregate annual income in accordance with article 99 of this Code; from the realisation of mineral resources extracted before production is started after a commercial discovery; from the realisation of a part of a subsoil use rights.
2)
3) 3.
The procedure established by point 1 of this article shall also apply to a taxpayers expenses to purchase intangible assets from the acquisition of a subsoil use right.
Article 112. Deduction of Subsoil User Expenses to train Kazakhstan Staff and develop the local Social Sphere 1. Expenses incurred by a subsoil user to train Kazakhstan staff and develop the local social sphere shall be deductible up to the amounts established by a subsoil use contract. The expenses referred to in point 1 of this article actually incurred by a subsoil user before starting production after making a commercial discovery shall be deductible in accordance with the procedure established by article 111 of this Code, up to the amounts established by a subsoil use contract. For the purposes of this article expenses actually incurred by a subsoil user: 1) to train Kazakhstan staff shall be those used in the training, professional development and retraining of Republic of Kazakhstan nationals, as well as funds transferred to the state budget for the same purpose; to develop the local social sphere shall be those used to develop and support the regions social infrastructure, as well as funds transferred to the state budget for the same purpose.
2.
3.
2)
Article 113. Deduction of Negative Exchange Differences exceeding Positive Exchange Differences If a negative exchange difference exceeds a positive exchange difference, the excess shall be deductible. The value of an exchange difference shall be determined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan. Article 114. Deduction of Taxes and Other Obligatory Payments to the Budget 1. All taxes paid to the budget of the Republic of Kazakhstan or other country on objects of taxation shall be deductible up to the amount assessed and accrued, except for: 1) 2) taxes excluded before aggregate annual income is determined; corporate income tax or taxes on legal entities income paid in the Republic of Kazakhstan and in other countries; taxes paid in low-tax countries;
3)
87
4) 2.
excess profits tax.
Taxes and other obligatory payments to the budget accrued and assessed for previous tax periods and paid in the current tax period shall be deductible in the current tax period.
Article 115. Non-Deductible Costs The following shall be non-deductible: 1) 2) 3) costs not attributable to income generating activities; expenses on operations with a taxpayer recognised by a valid court ruling or verdict as a fictitious company, from the moment activities recognised by a court as criminal start; expenses on operations with a taxpayer recognised as inactive in accordance with the procedure determined by article 579 of this Code, from the moment data is published on the authorised bodys official site; expenses on a transaction(s) recognised by a court as having been concluded by a private entrepreneur without any intention of performing business activities; forfeits (fines and late payment interest) payable (paid) to the budget, except for forfeits (fines and late payment interest) payable (paid) to the state budget under state purchase agreements; expenses that have been deducted in excess of the norm established by this Code; other obligatory payments to the budget calculated (accrued) and paid in excess of the amounts established by normative legal acts of the Republic of Kazakhstan; purchase, production, construction, assembly, installation and other costs included in the value of social sphere facilities as stipulated by point 2 of article 97 of this Code, and also related operating expenses; the value of property transferred by a taxpayer free of charge, unless otherwise stipulated by this Code. The value of work performed and services provided free of charge shall be determined as the value of expenses incurred in connection with the work and services in question;
4) 5)
6) 7)
8)
9)
10) value added tax offset by a taxpayer applying article 267 of this Code in excess of accrued value added tax for the tax period; 11) contributions to reserve funds, except for the deductions stipulated by articles 106 and 107 of this Code; 12) the value of inventories transferred under an agreement to sell an enterprise as a property complex; 13) an additional payment made by a subsoil user operating under a production sharing agreement; 14) a taxpayers costs included in accordance with article 87 of this Code in the original value of non-depreciable assets. 3. Fixed Asset Deductions Article 116. Fixed Assets 1. Unless otherwise stipulated by this article, the following shall be regarded as fixed assets: 1) tangible assets, real estate investments, intangible and biological assets accounted for in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, and to be used in income generating activities; 88
2)
assets with a service life of more than one year, which are produced and (or) received by a concessionaire (legal successor or legal entity specially created by a concessionary to realise a concession agreement) within the framework of a concession agreement; assets with a service life of more than one year, recognised as the social sphere facilities in point 3 of article 97 of this Code; assets with a service life of more than one year for use for more than one year in income generating activities, which have been received by a trust manager under a trust agreement or other property trust settlement act.
3)
4)
2.
The following shall not be regarded as fixed assets: 1) tangible assets and intangible assets commissioned by a subsoil user before starting production and after a commercial discovery, which are recorded for taxation purposes in accordance with article 111 of this Code; land; museum artefacts; architectural or artistic monuments; public structures: highways, pavements, boulevards, public squares; capital construction in progress; film archives; state standards of measurement of the Republic of Kazakhstan; tangible assets already fully depreciated in accordance with tax legislation of the Republic of Kazakhstan in force prior to 1 January 2000;
2) 3) 4) 5) 6) 7) 8) 9)
10) intangible assets with an indefinite service life, recognised as such and recorded in a taxpayers balance sheet in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan; 11) assets commissioned as part of an investment project with respect to contracts concluded before 1 January 2009 in accordance with legislation of the Republic of Kazakhstan on investments; 12) preference objects for the three tax periods following the tax period in which the objects were commissioned, except for those cases stipulated by point 13 of article 118 of this Code; 13) assets with a service life of more than one year, which are social sphere facilities as stipulated by point 2 of article 97 of this Code. Article 117. Balance Value 1. Fixed assets shall be recorded in groups formed in accordance with classification rules established by the authorised state body for technical regulation and metrology, as follows: No. 1 1 2 Group No. 2 I II Name of fixed assets 3 Buildings, structures, except for oil and gas wells, and transmission devices Machines and equipment, except for oil and gas production machines and
89
equipment; data processing computers and equipment 3 4 III IV Data processing computers and equipment Fixed assets not included in other groups, including oil and gas wells; transmission devices; oil and gas production machines and equipment
Each object in group I shall be the equivalent of a subgroup. 2. Each subgroup (group I) or group shall record a total, which shall be recognised as the balance value of the subgroup (group I) or group, at the start and end of the tax period. The balance value of group I shall consist of the balance values of the subgroups for each tangible asset and the balance value of a subgroup formed in accordance with subpoint 2) of point 3 of article 122 of this Code. 3. The balance value of the fixed assets in group I shall be the balance value of the various subgroups at the end of the previous tax period reduced by depreciation rates calculated in the previous tax period, and adjusted according to articles 121 and 122 of this Code. Fixed assets shall be recorded: 1) for group I broken down into fixed assets, each of which shall create a separate subgroup of the group balance value; for groups II, II and IV broken down into the balance value of the groups.
4.
2) 5.
Fixed assets received shall increase the relevant balance value of the subgroups (group I), groups (for all remaining groups) by the value determined in accordance with article 118 of this Code, in accordance with the procedure established by this article. Retired fixed assets shall reduce the relevant balances of the subgroups (for group I) and groups (for all remaining groups) by the amount determined in accordance with article 119 of this Code, in accordance with the procedure established by this article. The balance value of a subgroup (group I) or group at the start of the tax period shall be determined as: the balance value of the subgroup (group I) or group at the end of the previous tax period minus total depreciation rates calculated in the previous tax period plus or minus adjustments made according to article 121 of this Code. The balance value of a subgroup (for group I) or group at the end of a tax period should not be negative.
6.
7.
8.
The balance value of a subgroup (group I) or group at the end of a tax period shall be determined as: the balance value of the subgroup (group I) or group at the start of the tax period plus fixed assets received in the tax period minus 90
fixed assets retired in the tax period plus or minus adjustments made according to article 122 of this Code. 9. A trust manager should form separate balance values for the fixed asset groups (subgroups) referred to in subpoint 4) of point 1 of article 116 of this Code, and keep separate tax accounting records for them based on point 5 of article 58 of this Code.
Article 118. Receipt of Fixed Assets 1. When fixed assets are acquired, including under a financial lease agreement and by transfer from inventory, they shall increase the balance value of the groups (subgroups) by their original value. Recognition for taxation purposes of the acquisition of a fixed asset shall mean their inclusion in fixed assets. 2. Unless otherwise stipulated by this article, the original value of fixed assets shall include costs incurred by a taxpayer before the particular asset is commissioned. Such costs shall include costs incurred to acquire a fixed asset; produce, construct, assemble and install it, as well as other costs that increase its value in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, except for costs (expenses): that are not deductible in accordance with this Code; that a taxpayer is entitled to deduct on the basis of points 6, 12 and 13 of article 100 of this Code, as well as articles 101-114 of this Code; depreciation rates; those recorded in accounting and not recognised as an expense for taxation purposes in accordance with point 15 of article 100 of this Code. 3. The original value of a fixed asset acquired by transferring it from inventories shall be its book value in from accounting records at the date it is acquired. If fixed assets are received free of charge, their original value shall be the value determined according to data in the act of acceptance for the assets in question. If fixed assets are received as a charter capital contribution, their original value shall be the value determined in accordance with civil legislation of the Republic of Kazakhstan. If fixed assets are received after a taxpayer has undergone a merger, takeover, division or spin-off, the original value of the fixed assets shall be the value determined in accordance with civil legislation of the Republic of Kazakhstan. If a trust manager acquires fixed assets for trust management purposes, their original value shall be: 1) if the assets in question were fixed assets for the transferring entity the value determined in accordance with point 10 of article 119 of this Code; in other cases the value determined according to data in the act of acceptance for the assets in question.
4.
5.
6.
7.
2)
8.
If fixed assets are acquired from a trust manager after trust management liabilities have ceased, the original value of the fixed assets shall be: 1) if the assets in question were fixed assets for the trust manager the value determined in accordance with point 11 of article 119 of this Code; 91
2)
in other cases the value determined in accordance with point 10 of article 119 of this Code, reduced by depreciation rates. In this respect, depreciation rates shall be calculated for each trust management tax period preceding the reporting tax period, based on maximum depreciation rates stipulated by this Code for the relevant fixed asset group and applicable to the original value, reduced by depreciation rates for previous periods.
9.
If a concessionaire (legal successor or legal entity specially created by a concessionaire to realise a concession agreement) acquires fixed assets under a concession agreement, the original value of the fixed assets shall be the value determined in accordance with point 12 of article 119 of this Code, and if value does not exist the amount determined in accordance with the procedure established by the authorised state body for budget execution.
10. If a concedent acquires fixed assets after a concession agreement has expired, the original value of the fixed assets shall be the value calculated in accordance with point 13 of article 119 of this Code. 11. When a taxpayer applying the simplified declaration special tax regime for small businesses changes to calculating corporate income tax in accordance with articles 81-149 of this Code, the book value of tangible assets, real estate investments, intangible and biological assets that were used in the special tax regime shall be the original value of fixed assets determined in accordance with international financial reporting standards and requirements of accounting and financial reporting legislation of the Republic of Kazakhstan at the date of transfer to the standard procedure for calculating taxes. 12. Group I fixed assets that have been retired because they are temporarily no longer being used to generate income shall be included in the balance value of group I fixed assets in the tax period in which the fixed assets were commissioned for use in income generating activities, at the retirement value, adjusted by expenses that increase asset value in accordance with article 122 of this Code. 13. Assets on which preferences have been annulled shall be included in the balance value of a group (subgroup) in those cases referred to in point 4 of article 125 of this Code, at the original value determined in accordance with the procedure established by point 2 of this article. 14. Once three tax periods have passed since the tax period in which a preference object was commissioned, the object, except for the assets referred to in point 13 of this article, shall be included in the balance value of the group (subgroup) in the case referred to in point 6 of article 125 of this Code, at zero value. Article 119. Retirement of Fixed Assets 1. Unless otherwise established by this article, the retirement of fixed assets shall mean the derecognition of assets in accounting as tangible assets, real estate investments, intangible and biological assets, except for derecognition due to full depreciation and (or) impairment, and also reclassification as assets intended for sale. Recognition of the retirement of fixed assets for taxation purposes shall mean the removal of retired assets from fixed assets. 2. Unless otherwise established by this article, the balance value of a subgroup (group) shall be reduced by the balance value of retired fixed assets as determined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan at the retirement date. When fixed assets are realised, including under a financial lease agreement, without being transferred to inventories, the balance value of the subgroup (group) shall be reduced by the realisation value, except for value added tax. If a sale and purchase agreement, including a sale and purchase agreement for an enterprise as a property complex, does not break down realisation value into individual fixed assets, the subgroup (group) balance value shall be reduced by the balance value of retired fixed assets as determined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan at the realisation date.
3.
92
4.
If fixed assets are transferred free of charge, the balance value of a subgroup (group) shall be reduced by the value determined in acts of acceptance for the assets in question. When fixed assets are transferred as a charter capital contribution, the balance value of a subgroup (group) shall be reduced by the value determined in accordance with civil legislation of the Republic of Kazakhstan. When fixed assets are retired after a merger, takeover, division or spin-off, the balance value of a subgroup (group) shall be reduced by the value recorded in the relevant act of transfer or division balance sheet. When property is withdrawn by a founder or participant, the balance value of a subgroup (group) shall be reduced by the amount agreed upon by the founders or participants. Following the loss or destruction of or damage to fixed assets: 1) if the fixed assets are insured the balance value of the subgroup (group) shall be reduced by the amount the insurance organisation pays to the insured party under an insurance agreement; if group I fixed assets are not insured the balance value of the relevant subgroups shall be reduced by the book value of the fixed assets calculated in accordance with the procedure stipulated by point 3 of article 117 of this Code; if fixed assets, except for group I fixed assets, are not insured, the retirement value shall not be recorded.
5.
6.
7.
8.
2)
3)
9.
If a lessee returns a financial lease object to the lessor, the balance value of the subgroup (group) shall be reduced by the positive difference between the purchase value of the financial lease object and total lease payments from the date of receipt until the date the lease object is returned, reduced by interest on the financial lease.
10. When fixed assets are transferred to trust management, the balance value of a group (subgroup) shall be reduced: 1) 2) for group I by the book value of the fixed assets; for groups II, III and IV by the book value determined in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan as at the transfer date.
11. After trust management obligations have been fulfilled, a trust manager shall reduce the balance value of a group (subgroup): 1) for group I by the book value of the fixed assets calculated in accordance with the procedure stipulated by point 3 of article 117 of this Code; for groups II, III and IV:
2)
when all group assets are transferred by the balance value of the group calculated in accordance with the procedure stipulated by point 8 of article 117 of this Code; in all remaining cases by the original value of transferred assets calculated in accordance with article 118 of this Code, reduced by depreciation rates. In this respect, depreciation rates shall be calculated for each trust management tax period preceding the reporting tax period, based on maximum depreciation rates stipulated by this Code for the relevant fixed asset group and applicable to the original value reduced by depreciation rates for previous periods. 12. If fixed assets are transferred to a concessionaire under a concession agreement, the balance value of the concedents group (subgroup) shall be reduced: 1) for group I by the book value of fixed assets calculated in accordance with the procedure stipulated by point 3 of article 117 of this Code; 93
2)
for groups II, III and IV by the value determined in accordance with the procedure established by the authorised state body for budget execution.
13. If fixed assets are transferred to a concedent after a concession agreement has expired, the balance value of the concessionaires group (subgroup) shall be reduced: 1) for group I by the book value of fixed assets calculated in accordance with the procedure stipulated by point 3 of article 117 of this Code; for groups II, III and IV by the value determined in accordance with the procedure established by the authorised state body for budget execution.
2)
14. If fixed assets are temporarily not being used in income generating activities: 1) for group I the balance value of the relevant subgroups shall be reduced by the book value of the fixed assets calculated in accordance with the procedure stipulated by point 3 of article 117 of this Code. The balance value of a subgroup shall be reduced when the tax periods when assets are temporarily not being used and their subsequent commission do not match; retired assets from groups II, III and IV shall not be recorded. Any period when fixed assets are temporarily not being used without derecognition in accounting records as tangible assets, real estate investments, intangible and biological assets shall be recognised as a suspension of the use of fixed assets. Article 120. Calculation of Depreciation rates 1. The value of fixed assets shall be deductible by calculating depreciation rates in accordance with the procedure and under the conditions established by this Code. Depreciation rates for each subgroup or group shall be determined by applying depreciation rates, which should not exceed the maximum value, to the balance value of the subgroup or group at the end of the tax period, as follows: Group No. 2 I Name of fixed assets Maximum depreciation rate (%) 4 10
2)
2.
No.
1 1
3 Buildings, structures except for oil and gas wells, and transmission devices Machines and equipment, except for oil and gas production machines, as well as computers and data processing equipment Computers and data processing equipment Fixed assets not included in other groups, including oil and gas wells; transmission devices; oil and gas production machines and equipment
II
25
3 4
III IV
40 15
3.
Depreciation rates shall be determined for buildings and structures separately, except for oil and gas wells, and transmission devices. If a taxpayer undergoes liquidation or reorganisation, a legal entity applying the simplified declaration special tax regime for small businesses transfers to calculating corporate income tax in accordance with articles 81-149 of this Code, and also if legal entity agricultural manufacturers and rural consumer cooperatives stop applying the relevant special tax regime, depreciation rates shall be adjusted by the period of activity in the tax period. 94
4.
5.
A taxpayer shall be entitled to recognise production buildings and structures, machines and equipment commissioned in the Republic of Kazakhstan for the first time, and which comply with the conditions in point 2 of article 123 of this Code, as: fixed assets and deduct their value in accordance with the procedure established by articles 116122 of this Code, or preference objects and deduct their value in observance of the conditions and in accordance with the procedure established by articles 123-125 of this Code.
6.
A subsoil user shall be entitled to calculate depreciation rates at double the depreciation rate during the first tax period for fixed assets commissioned in the Republic of Kazakhstan for the first time, provided the fixed assets have been used to generate aggregate annual income for at least three years. These fixed assets shall be recorded separately from the balance value of the group in the first tax period they are used. These fixed assets shall be included in the balance value of the relevant group in subsequent tax periods. The provisions of this point shall refer exclusively to fixed assets where: 1) by virtue of the specific nature of how they are used, that have a direct impact on activities performed under a subsoil use contract(s); in tax accounting, a taxpayers subsequent expenses in relation to the assets cannot be allocated between activities under a subsoil use contract(s) and non-contractual activities.
2)
Article 121. Other Deductions on Fixed Assets 1. After retiring fixed assets from a subgroup (for group I), except for those transferred free of charge, the balance value of the subgroup at the end of the tax period shall be recognised as a loss from the retirement of group I fixed assets. The balance value of this subgroup shall equal zero and not be deductible. 2. After all fixed assets of a group (for groups II, III and IV) have been retired, the balance value of the relevant subgroup or group at the end of the tax period shall be deductible, unless otherwise stipulated by this article. If all the fixed assets of a subgroup (for group I) or group (for groups II, III and IV) are transferred free of charge, the balance value of the relevant subgroup or group at the end of the tax period shall equal zero and not be deductible. A taxpayer shall be entitled to deduct the balance value of a subgroup (group) at the end of a tax period provided that the balance value is less than 300 times the monthly calculation index set for the relevant financial year by the law on the state budget.
3.
4.
Article 122. Deduction of Subsequent Expenses 1. Subsequent expenses shall be actual expenses incurred when the assets referred to in point 2 of this article are commissioned, repaired, maintained and liquidated, as well as expenses incurred at the expense of a taxpayers reserve funds, except for subsoil user expenses incurred at the expense of contributions to a liquidation fund that are deducted according to article 107 of this Code. Subsequent expenses, except for those referred to in point 3 of this article, shall be deductible in the same tax period in which they were actually incurred. A deduction shall be permitted in relation to the following assets: 1) fixed assets and (or)
2.
95
2)
tangible assets, real estate investments, intangible and biological assets recorded in a taxpayers accounting records in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, and used in income generating activities, except for the assets referred to in subpoints 1), 6) and 13) of point 2 of article 116 of this Code.
3.
Unless otherwise stipulated by this article, subsequent expenses recorded in accounting records that increase the balance value of the assets referred to in subpoint 12) of point 2 of article 116 of this Code, subpoint 1) of point 2 of this article, and also the subsequent expenses referred to in point 5 of article 125 of this Code: 1) 2) shall increase the balance value of the group (subgroup) for the corresponding asset type; in the absence of a group (subgroup) balance value for the corresponding asset type, shall create a group (subgroup) balance value for the corresponding asset type at the end of the current tax period. Subsequent expenses stipulated by this point shall be recognised for taxation purposes in the same tax period in which they were actually incurred, except for the case stipulated by point 12 of article 118 of this Code.
4.
Any subsequent expenses incurred by a lessee in related to leased tangible assets shall be deductible. Subsequent expenses to reconstruct and modernise production buildings and structures, as well as machines and equipment shall be deductible at the discretion of a taxpayer with the right to apply investment tax preferences, in accordance with point 3 of this article or articles 123-125 of this Code.
5.
4. Investment Tax Preferences Article 123. Investment Tax Preferences 1. Investment tax preferences (hereafter preferences) shall be applied at a taxpayers discretion in accordance with this article and articles 124-125 of this Code, and shall involve deducting the value of preference objects and (or) subsequent reconstruction and modernisation expenses. Legal persons of the Republic of Kazakhstan, except for those referred to in point 6 of this article, shall be entitled to apply preferences. 2. Production buildings and structures; machines and equipment commissioned for the first time in the Republic of Kazakhstan shall be recognised as preference objects if they have met the following conditions for at least three tax periods following the tax period in which they were commissioned: 1) they are recognised as the assets listed in subpoint 2) of point 1 of article 116 of this Code, or are tangible assets; a taxpayer who has applied preferences used them in income generating activities; they are not assets which by virtue of the specific nature of how they are used have a direct impact on activities performed under a subsoil use contract(s); in tax accounting, subsequent expenses incurred by a taxpayer on the assets cannot be allocated between activities under a subsoil use contract(s) and non-contractual activities.
2) 3)
4)
3.
Subsequent expenses to reconstruct and modernise production buildings and structures, machines and equipment shall be deductible in the same tax period in which they were actually incurred, provided the buildings and structures, machines and equipment meet the following conditions simultaneously:
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1)
they are recorded in a taxpayers accounting records as tangible assets in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan; they are used in income generating activities for at least the three tax periods following the tax period in which they were commissioned after reconstruction and modernisation; they are temporarily decommissioned during a reconstruction and modernisation period; they are not regarded as assets that by virtue of the specific nature of how they are used could have a direct impact on activities performed under a subsoil use contract(s); subsequent taxpayer expenses in relation to the assets cannot be allocated in tax accounting between activities under a subsoil use contract(s) and non-contractual activities. For the purposes of applying preferences, the reconstruction and modernisation of tangible assets is a type of subsequent expense that could simultaneously result in: a change, including the renewal or construction of a tangible asset; an increase in the service life of a tangible asset of more than three years; an improvement in the characteristics of a tangible asset compared to those at the start of the calendar month in which the tangible asset was temporarily decommissioned for reconstruction and modernisation purposes.
2)
3) 4)
5)
4.
For the purposes of applying preferences, production buildings shall include non-residential buildings (parts of non-residential buildings), except for: commercial buildings (parts of commercial buildings); entertainment centres (parts of entertainment centres); hotels, restaurants and other short-term residential buildings, public catering buildings (parts of these buildings); office premises (parts of these buildings); vehicle garages (parts of these buildings); parking lots (parts of these buildings). For the purposes of applying preferences, production structures shall include structures except for sports and leisure structures; entertainment structures; hotels and restaurants; administrative structures; and structures used in parking lots.
5.
For the purposes of applying preferences, the first commission of a building (part of a building) in the Republic of Kazakhstan shall mean: for a construction contract the contractors transfer of a construction object to a client after an act of commission for a building (part of a building) has been signed by the state acceptance commission; in all remaining cases the state acceptance commission signing an act of commission for a building (part of a building).
6.
Taxpayers that meet at least one of the following conditions shall not be entitled to apply preferences: 1) the taxpayer is taxed in accordance with section 5 of this Code;
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2)
the taxpayer produces and (or) realises the excisable goods referred to in subpoints 1)-4) of article 279 of this Code; the taxpayer applies a special tax regime stipulated by chapter 63 of this Code.
3)
Article 124. Application of Preferences 1. Preferences shall be applied using one of the following methods: 1) 2) 2. the post-commission deduction method; the pre-commission deduction method.
The post-commission deduction method shall involve deducting the original value of preference objects as determined in accordance with points 2 and 3 of article 125 of this Code in equal shares over the first three tax periods of operation or in the same tax period in which the objects were commissioned. The pre-commission deduction method shall involve deducting costs for the construction, production, purchase, assembly and installation of preference objects, and also subsequent expenses to reconstruct and modernise production buildings and structures, machines and equipment before they are commissioned, in the tax period in which the costs were actually incurred. Preferences shall be annulled from the moment they are applied and a taxpayer should reduce deductions by the value of preferences for each tax period in which they were applied, if during the three tax periods following the tax period in which production buildings and structures, machines and equipment subject to preferences were commissioned: 1) 2) the taxpayer has violated the provisions of points 2-4 of article 123 of this Code or cases have arisen when a taxpayer applying preferences, or a legal successor if the taxpayer has been reorganised, meets any of the provisions of point 6 of article 123 of this Code.
3.
4.
Article 125. Special Considerations for the Tax Accounting of Preference Objects 1. A taxpayer shall record preference objects and subsequent expenses to reconstruct and modernise production buildings and structures, machines and equipment separately from fixed assets for the three tax periods following the tax period in which production buildings and structures, machines and equipment subject to preferences were commissioned, unless otherwise established by this article. Preference objects and subsequent expenses to reconstruct and modernise production buildings and structures, machines and equipment shall be broken down into objects subject to preferences. 2. The original value of a preference object that is a tangible asset shall include a taxpayers costs incurred before the object was commissioned. These costs include costs to purchase the object, produce, construct, assemble and install it, as well as other costs that increase its value in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, except for costs (expenses): not deductible in accordance with this Code; which the taxpayer is entitled to deduct on the basis of points 6, 12 and 13 of article 100 of this Code, and also articles 101-114 of this Code; depreciation rates; those arising in accounting records and not regarded as an expense for taxation purposes in accordance with point 15 of article 100 of this Code.
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3.
The original value of a preference object regarded as an asset referred to in subpoint 2) of point 1 of article 116 of this Code shall be determined in accordance with the procedure stipulated by point 9 of article 118 of this Code. Assets for which preferences have been annulled shall be recognised as fixed assets from the day they are commissioned provided they meet the provisions of point 1 of article 116 of this Code, and shall be included in the balance value of the group (subgroup) corresponding to the asset in accordance with the procedure stipulated by articles 117 and 118 of this Code. If preferences are annulled for subsequent expenses to reconstruct and modernise production buildings and structures, machines and equipment, these expenses shall be recorded in accordance with the procedure stipulated by point 3 of article 122 of this Code. Once three tax periods following the tax period in which a preference object was commissioned have ended, preference objects, except for those referred to in point 4 of this article, shall be recognised as fixed assets provided the provisions of point 1 of article 116 of this Code have been met, and shall be included in the balance value of the group (subgroup) corresponding to the asset type in accordance with the procedure stipulated by articles 117 and 118 of this Code.
4.
5.
6.
5. Derivatives Article 126. General Provisions 1. If a derivative is used for hedging purposes or for supplying an underlying asset the derivative shall be recorded for taxation accounting purposes in accordance with articles 129 and 130 of this Code. A loss on derivatives shall be determined in accordance with article 136 of this Code and carried forward in accordance with article 137 of this Code, taking into account articles 129 and 130 of this Code.
2.
Article 127. Income from Derivatives, except for Swaps 1. Income from derivatives, except for swaps, shall be regarded as earnings exceeding expenses as determined in accordance with this article. For tax accounting purposes, income shall be determined at the moment a derivative is executed or is terminated early. Earnings on a derivative shall be payments receivable (received) from a particular derivative if interim payments are made over the transaction period, and also at the date the derivative is executed or terminated early. Expenses on a derivative shall be payments due (paid) if interim payments are made on the derivative over the transaction period, and also at the date the derivative is executed or terminated early.
2.
3.
Article 128. Swap Income 1. Swap income shall be generated when earnings exceed expenses determined in accordance with this article. For tax accounting purposes, swap income shall be determined at the end of the reporting tax period. Swap earnings shall be regarded as payments receivable (received) from a swap over the reporting tax period. Swap expenses shall be payments due (paid) on a swap over the reporting tax period.
2.
3.
Article 129. Special Considerations for the Tax Accounting of Hedging Operations 1. Hedging is a form of transaction with derivatives concluded to reduce possible losses resulting from unfavourable price changes or other hedging criteria. Assets and (or) liabilities as well as cash flow 99
related to these assets and (or) liabilities, or to expected transactions shall be recognised as hedging objects. 2. To confirm grounds for treating derivative transactions as hedging transactions, a taxpayer shall file a statement together with a tax declaration confirming that the transactions in question result in (could result in) a reduction in possible losses (missed profit) from transactions with hedging objects. Income or losses from hedging transactions shall be recorded for tax purposes in accordance with the provisions of this Code determined for hedging objects. Income or losses from hedging transactions for tax accounting purposes shall be recognised in the same tax period in which they were generated.
3.
4.
Article 130. Special Considerations of Tax Accounting when exercising a Derivative by supplying an Underlying Asset 1. If a derivative is exercised by purchasing or realising an underlying asset, then expenses payable (incurred), and payments receivable (received) as a result of the purchase or realisation of the underlying asset in question shall not be regarded as expenses on and earnings from derivatives. Earnings and expenses from the transactions referred to in point 1 of this article shall be recorded for tax accounting purposes in accordance with the provisions of this Code applicable to income and expenses from an underlying asset.
2.
6. Adjustment of Income and Deductions Article 131. General Provisions An adjustment shall be regarded as an increase or reduction in income or a deduction for a particular reporting tax period up to the value of previously recognised income or deductions in those cases established by article 132 of this Code. Article 132. Adjustment to Income and Deductions 1. Income or deductions shall be adjusted in the event of: 1) 2) 3) a full or partial return of goods; a change in transaction conditions; a change in price, compensation for realised or purchased goods, work performed or services provided; price and sales reductions; a change in the amount payable in the national currency for realised or purchased goods, work performed or services provided based on agreement conditions; claims being written off, which lead to income adjustments in accordance with point 2 of this article.
4) 5)
6)
2.
A taxpayer-creditor shall adjust income when writing off claims from: legal entities; individual entrepreneurs; non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment, with respect to claims relating the activities of the permanent establishment.
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The income adjustments stipulated by this point shall be carried out when: 1) a taxpayer-creditor does not make a claim upon the liquidation of a taxpayer-debtor on the day its liquidation balance sheet is approved; a claim is written off in accordance with a valid court decision.
2)
An adjustment shall be made if: 1) 2) primary documents exist to support a claim; claims were accounted for at the date income is adjusted or recorded as an expense (write off) in accounting for previous periods. Income shall be adjusted up to the value of a written-off claim and income already recognised from the claim.
This point shall not apply to claims recognised as doubtful in accordance with this Code. 3. Income shall not be adjusted if claims are reduced due to their transfer under an agreement for the sale-purchase of an enterprise as a property complex.
Chapter 12. Reduction of taxable income and the exemption of certain categories of taxpayers from taxation
Article 133. Reduction of Taxable Income 1. A taxpayer shall be entitled to use the following expenses to reduce taxable income: 1) up to a total of 3% of taxable income: the amount by which actual expenses exceed income receivable (received) from operating the social sphere facilities stipulated by point 2 of article 97 of this Code; the value of property transferred to non-commercial organisations and organisations operating in the social sphere, free of charge. The value of work performed and services provided free of charge shall be determined as expenses incurred in performing the work and providing the services; sponsorship and charity if the taxpayer has taken a decision to provide it based on a request from the person receiving the aid; 2) twice the value of employment compensation expenses incurred for handicapped individuals and 50% of social tax calculated on salaries and other payments to handicapped individuals; expenses to train individuals who are not employed with the taxpayer, provided the individual has signed an agreement to work for the taxpayer for at least three years. For the purposes of this subpoint, training expenses shall include: actual training expenses; actual accommodation expenses up to the limit set by the Government of the Republic of Kazakhstan; allowances to the trainee up to the amounts set by the taxpayer, but which should not exceed the limit set by the Government of the Republic of Kazakhstan; actual expenses incurred in travelling to the training location and back again. 2. A taxpayer shall be entitled to reduce taxable income by the following income types:
3)
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1) 2)
interest on a financial lease of tangible assets, real estate investments and biological assets; interest on debt securities that on the accrual date are in the official list of a stock exchange operating in the Republic of Kazakhstan; interest on state equity securities, agency bonds and capital gains following the realisation of state equity securities and agency bonds; the value of property received in the form of humanitarian aid in the event of a natural or manmade disaster, and which has been used as intended; the value of tangible assets received free of charge by a state enterprise from a state body or state enterprise based on a decision of the Government of the Republic of Kazakhstan; capital gains from the realisation of shares and participation interest in a legal entity or consortium created in accordance with legislation of the Republic of Kazakhstan. This subpoint shall apply if 50% or more of the charter (shareholder) capital or shares (participation interest) of the legal entity or consortium in question consists on the realisation date of property of a person (persons) that is (are) not a subsoil user(s);
3)
4)
5)
6)
7)
capital gains from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan using the open trade method.
Article 134. Taxation of Non-Commercial Organisations 1. For the purposes of this Code, any organisation with non-commercial status in accordance with civil legislation of the Republic of Kazakhstan shall be regarded as a non-commercial organisation, except where that organisation is a joint stock company, institution or consumer cooperative, except for apartment (residential premises) owner cooperatives operating in the public interest and where: 1) 2) 2. the purpose of the organisation is not to generate income as such; the organisation does not distribute net income or property between its participants.
A non-commercial organisations income received from a state social order agreement in the form of deposit interest, a grant, enrolment or membership fees, fees from condominium participants, charity and sponsorship aid, property received free of charge, contributions and donations free of charge shall not be taxable provided the conditions in point 1 of this article are met. Where the conditions set out in point 1 of this article are not met, a non-commercial organisations income shall be taxable in accordance with the standard procedure. Income not referred to in point 2 of this article shall be taxable in accordance with the standard procedure. In connection with the above, a non-commercial organisation shall be obliged to keep separate accounting for income exempt from tax in accordance with this article, and for income that is taxable in accordance with the standard procedure.
3.
4.
5.
When income taxable in accordance with the standard procedure is received, a non-commercial organisations deductible expenses shall be determined, at the taxpayers discretion, according to the proportional or separate method. Under the proportional method, deductible expenses shall be determined from total expenses based on the percentage of income not indicated in point 2 of this article in a non-commercial organisations total income. Under the separate method a taxpayer shall keep a separate record of the expenses attributable to the income referred to in point 2 of this article, and expenses attributable to income taxable in accordance with the standard procedure. 102
6.
7.
Article 135. Taxation of Social Sphere Organisations 1. The income of the organisations covered by this article shall not be taxable provided they observe the conditions established by this article. For the purposes of this Code, social sphere organisations shall be those performing the activities referred to in this point, where no less than 90% of their aggregate annual income comes from property received free of charge and deposit interest. Social sphere activities shall be regarded as: 1) 2) the provision of medical services, except for cosmetic surgery and sanatorium-resort services; the provision of licensed pre-school education and training services; primary, basic, secondary and further general education services; primary, secondary, higher and higher vocational education; retraining and further professional development; services in the fields of science (including scientific research, use and realisation by the author of scientific intellectual property), sport (except for commercial sporting events), culture (except for business activities), services to preserve (except for the distribution of information and propaganda) historical or cultural artefacts entered in registers of historical and cultural artefacts or the state list of historical and cultural monuments, in accordance with legislation of the Republic of Kazakhstan, and also in the social welfare or protection of children, the elderly or handicapped; library services.
2.
3)
4)
The income of the organisations referred to in this point shall not be taxable provided it is used to perform the above activities. 3. For the purposes of this Code organisations operating in the social sphere shall also include organisations that meet the following conditions: 1) the number of handicapped employees for the tax period amounts to at least 51% of the total number of employees; employment compensation expenses for handicapped individuals for the tax period amount to at least 51% (in specialised organisations where handicapped individuals with hearing, speech and visual impairments are employed at least 35%) of total employment compensation expenses.
2)
4.
Social sphere organisations shall not include organisations generating income from the production and realisation of excisable goods and excisable activities. Where the conditions stipulated in this article are not met, income received shall be deemed taxable in accordance with the procedure established in this Code.
5.
Chapter 13. Losses

Article 136. Definition of Losses 1. The following shall constitute a loss from business activities: 1) deductions that exceed aggregate annual income, taking into account adjustments stipulated by article 99 of this Code; a loss from the sale of an enterprise as a property complex.
2) 2.
The following shall constitute a loss from the realisation of securities:
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1)
for securities, other than debt securities a negative difference between the realisation price and acquisition cost; for debt securities a negative difference between the realisation price and purchase cost, taking into account any depreciation discount and (or) premium on the realisation date.
2)
3.
A situation where expenses exceed receipts as determined in accordance with articles 127 and 128 of this Code shall be recognised as a loss on derivatives, taking into account the specific nature of hedging transactions.
Article 137. Losses Carried Forward 1. Losses from business activities and also losses from the retirement of group I fixed assets shall be carried forward for the next 10 years inclusive to offset taxable income from the tax periods in question. Unless otherwise established by this article, losses arising from the realisation of securities shall be compensated against capital gains from the realisation of other securities. If losses cannot be compensated in the period in which they arose, they may be carried forward for up to 10 years and compensated against capital gains generated from the realisation of other securities, unless otherwise established by this article. 3. Losses from the realisation of shares and participation interest in a legal entity or consortium created in accordance with legislation of the Republic of Kazakhstan, if 50% or more of the charter (shareholder) capital or shares (participation interest) of the legal entity or consortium on the day of realisation consists of the property of persons (entity) that are (is) not a subsoil user(s) shall be compensated against capital gains from the realisation of shares and participation interest in the legal entity or consortium referred to in subpoint 6) of point 2 of article 133 of this Code. Losses from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan using the open trade method shall be compensated against capital gains from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan using the open trade method. If the losses referred to in points 3 and 4 of this article may not be compensated in the period in which they occurred, they should be carried forward to subsequent tax periods. The losses of a special financial company from activities performed in accordance with legislation of the Republic of Kazakhstan on securitisation may be carried forward for the period that bonds securing a specific asset are in circulation. Losses incurred by a taxpayer applying the special tax regime for legal entity agricultural manufacturers and rural consumer cooperatives shall not be carried forward to subsequent tax periods. Losses on derivatives, taking into account the characteristics of hedging transactions, shall be compensated against income from derivatives. If these losses cannot be compensated in the period in which they occurred, they may be carried forward for up to 10 years and compensated against income from derivatives.
2.
4.
5.
6.
7.
8.
Article 138. Carry Forward of Losses following Reorganisation Losses carried forward due to a division or spin-off shall be allocated according to the legal successors participation interest in the reorganised taxpayer and shall be carried forward in accordance with the procedure determined by article 137 of this Code.
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Chapter 14. Procedure for calculating and deadline for paying corporate income tax
Article 139. Calculation of Corporate Income Tax 1. Corporate income tax, except corporate income tax on net income and corporate income tax withheld at the source of payment, shall be calculated for a tax period in accordance with the following procedure: the product of the rate set by point 1 or point 2 of article 147 of this Code, and taxable income reduced by the income and expenses stipulated by article 133 of this Code, and also by losses carried forward in accordance with article 137 of this Code minus corporate income tax credited in accordance with point 2 of this article and article 223 of this Code. 2. Corporate income tax payable to the budget shall be reduced by corporate income tax withheld at the source of payment from income in the form of winnings and interest, provided documents are provided confirming that the tax has been withheld at the source of payment. This point shall not apply to a social sphere organisation or non-commercial organisation with respect to corporate income tax withheld at the source of payment from deposit interest income. 3. If corporate income tax withheld at the source of payment on interest income exceeds corporate income tax payable to the budget, the difference between corporate income tax withheld at the source of payment and corporate income tax payable to the budget shall be carried forward for the subsequent 10 tax periods inclusive to reduce corporate income tax payable to the budget for the tax periods in question.
Article 140. Special Considerations for the Calculation and Payment of Corporate Income Tax by Certain Categories of Taxpayers A taxpayer applying the special tax regime for legal entity agricultural manufacturers and rural consumer cooperatives shall calculate corporate income tax taking into account the special features established by article 451 of this Code. Article 141. Calculation of Advance Payments 1. Unless otherwise established by point 2 of this article taxpayers shall calculate and make advance corporate income tax payments during the current tax period in accordance with the procedure established by this Code. The following shall be entitled not to calculate and make advance corporate income tax payments: 1) unless otherwise stipulated by this point, taxpayers whose aggregate annual income after adjustments for the tax period preceding the previous tax period, did not exceed 325,000 times the monthly calculation index set by the law on the state budget for the relevant financial year; newly created taxpayers during the tax period in which state registration (record of registration) was carried out with the justice authorities, and also during the subsequent tax period; non-resident legal entities newly registered with the tax bodies as taxpayers, and operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office during the tax period in which registration with the tax bodies was carried out, and also during the subsequent tax period.
2.
2)
3)
3.
Advance payments shall be made in equal amounts during the current tax period.
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4.
A statement of advance corporate income tax payments payable for the period prior to filing a corporate income tax declaration for the previous tax period shall be filed for the first quarter of the reporting tax period on or before 20 January of the reporting tax period with the tax body at the taxpayers location. Advance corporate income tax payments for the period prior to filing a corporate income tax declaration for the previous tax period shall be one fourth of total advance payments in advance payment statements for the previous tax period.
5.
A taxpayer shall file a statement of advance corporate income tax payments for the period after filing a corporate income tax declaration for the previous tax period within 20 calendar days of filing for the 2nd, 3rd and 4th quarters of the reporting tax period. Advance corporate income tax payments for the period after filing a corporate income tax declaration for the previous tax period shall be of total corporate income tax for the previous tax period in accordance with point 1 of article 139 and 199 of this Code. Taxpayers who incurred losses or recorded no taxable income at the end of the previous tax period should file a statement of advance payments with a tax body within 20 calendar days of filing a corporate income tax declaration for the previous tax period, based on estimated corporate income tax for the current tax period. During a reporting tax period taxpayers shall be entitled to file an additional statement of advance corporate income tax payments for the period after a corporate income tax declaration was filed for the previous tax period, for future months of the reporting tax period based on estimated income for the reporting tax period. Advance corporate income tax payments for the period after a corporate income tax declaration was filed for the previous tax period, inclusive of adjustments indicated in additional statements of advance corporate income tax payments, may not be negative. An additional statement of advance corporate income tax payments for the period after a corporate income tax declaration was filed for the previous tax period may be filed on or before 20 December of the tax period.
6.
7.
8.
9.
If the deadline for filing a corporate income tax declaration for the previous tax period has been extended, a taxpayer shall make advance payments of average monthly advance payments for the extended period based on total advance payments calculated in statements of advance corporate income tax payments for the previous tax period.
10. This article shall not extend to taxpayers who meet the conditions of point 1 of article 134 of this Code, and also to taxpayers who meet the conditions established by points 2 and 3 of article 135 of this Code. Article 142. Deadline and Procedure for paying Corporate Income Tax 1. Taxpayers shall pay corporate income tax according to their location. Non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment shall pay corporate income tax according to the location of the permanent establishment. 2. The taxpayers referred to in point 1 of article 141 of this Code shall be obliged to make monthly advance corporate income tax payments to the budget throughout the tax period established by article 148 of this Code, on or before the 25th day of the current month and in the amount determined by article 141 of this Code. Advance payments made to the budget during a tax period shall be credited against corporate income tax payments calculated according to a corporate income tax declaration for the tax period. A taxpayer shall make a final corporate income tax payment for a particular tax period within 10 calendar days of the filing deadline. 106
3.
Chapter 15. Corporate income tax withheld at the source of payment

Article 143. Income Taxable at the Source of Payment 1. Income taxable at the source of payment shall, unless otherwise provided for by point 2 of this article, include: 1) 2) winnings; non-residents income from sources in the Republic of Kazakhstan, as determined in accordance with article 192 of this Code, which is not attributable to these non-residents permanent establishment; interest payable to legal entities.
3) 2.
The following shall not be taxed at the source of payment: 1) 2) interest on state equity securities and agency bonds; investment income payable to pension savings funds on placed pension assets, insurance organisations performing life insurance activities, unit and joint stock investment funds and the State Fund for the Social Insurance of Placed Assets; interest on debt securities included on the date of accrual in an official list of a stock exchange operating in the Republic of Kazakhstan; loan interest payable to organisations performing bank loan operations based on a license from the authorised state body for the regulation and control of the financial market and financial organisations; interest on loans payable to credit cooperatives; interest on loans payable to special financial companies created in accordance with legislation of the Republic of Kazakhstan on securitisation; interest on loans or deposits payable to resident banks; interest on financial leases payable to a resident lessor; interest on repo transactions and debt securities payable to organisations performing professional operations on the securities market;
3)
4)
5) 6)
7) 8) 9)
10) interest on microcredit payable to microcredit organisations. Article 144. Procedure for calculating Corporate Income Tax withheld at the Source of Payment 1. A tax agent shall calculate an amount of corporate income tax withheld at the source of payment by applying the rate set either in point 3 or 4 of article 147 of this Code to income payable that is taxable at the source of payment. A tax agent should withhold tax at the source of payment when paying the income referred to in article 143 of this Code, regardless of the type of income and the place it is paid.
2.
Article 145. Procedure for transferring Corporate Income Tax withheld at the Source of Payment 1. Tax agents should transfer corporate income tax withheld at the source of payment within 25 calendar days from the end of the month in which payment was made, unless otherwise stipulated by this Code. Taxes withheld at the source of payment shall be transferred according to the location of a tax agent. 107
2.
A non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall transfer corporate income tax withheld at the source of payment to the budget according to the location of the permanent establishment. Article 146. Statement of Corporate Income Tax withheld at the Source of Payment Tax agents should file a statement of corporate income tax withheld at the source of payment on or before the 15th of the second month following the quarter in which payment was made.
Chapter 16. Tax rates, tax period and tax declaration

Article 147. Tax Rates 1. A taxpayers taxable income that has been reduced by the income and expenses stipulated by article 133 of this Code, and by losses carried forward in accordance with the procedure established by article 137 of this Code, shall be taxed at the rate of 15%, unless otherwise stipulated by point 2 of this article. Where land is a taxpayers main means of production, taxable income reduced by income and expenses stipulated by article 133 of this Code, and losses carried forward in accordance with the procedure established by article 137 of this Code, shall be taxed at the rate of 10%. Income taxable at the source of payment, except for non-residents income from sources in the Republic of Kazakhstan, shall be taxable at the source of payment at the rate of 10%. Non-residents income from sources in the Republic of Kazakhstan defined in accordance with article 192 of this Code, and which is not related to a permanent establishment of the nonresidents, shall be taxable at the rates established by article 194 of this Code. In addition to corporate income tax, the net income of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall be taxed at the rate of 15% in accordance with the procedure established in article 199 of this Code.
2.
3.
4.
5.
Article 148. Tax Period 1. The tax period for corporate income tax purposes shall be the calendar year from 1 January until 31 December. If an organisation was created after the start of a calendar year, the organisations first tax period shall be the period from the day it was created until the end of the calendar year. In this respect, an organisations creation date shall be the day it undergoes state registration with the justice authorities. 3. If an organisation is liquidated or reorganised before the end of a calendar year, the organisations final tax period shall be the period from the start of the year until the person in question is liquidated or reorganised. If an organisation created after the start of a calendar year is liquidated or reorganised before the end of the same year, its tax period shall be the period from the day it is created until the day it is liquidated or reorganised.
2.
4.
Article 149. Tax Declarations 1. Payers of corporate income tax shall file a corporate income tax declaration with the tax body at its location on or before 31 March of the year following the reporting tax period, except for nonresidents receiving only income taxable at the source of payment from sources in the Republic of Kazakhstan, and not operating in the Republic of Kazakhstan through a permanent establishment, unless otherwise established by this article. 108
2.
At the same time as filing a corporate income tax declaration, a payer of corporate income tax shall file annual financial reporting compiled in accordance with international financial reporting standards and accounting and financial reporting legislation of the Republic of Kazakhstan, with the tax body at its location. A payer of corporate income tax shall file adjusted annual financial reporting with the tax body at its location within 30 calendar days of adjusting annual financial reporting.
3.
A corporate income tax declaration shall consist of the declaration itself and attachments to it on the disclosure of information on objects of taxation and (or) objects relating to taxation. A taxpayer applying the simplified tax regime for small businesses shall not file a declaration for income taxable in accordance with article 427 of this Code.
4.
Section 5. Taxation of organisations operating in special economic zones Chapter 17. Taxation of organisations operating in special economic zones
Article 150. General Provisions 1. Unless otherwise stipulated by this Code, legal entities shall be recognised as organisations operating in special economic zones if they meet the following conditions simultaneously: 1) 2) 3) they have created a record of registration with the tax bodies in special economic zones; they have no structural subdivisions outside of special economic zones; no less than 90% of their aggregate annual income is receivable (received) from realising goods of own production (work, services) used in the following activities that meet the objectives for the creation of the special economic zone: the design, development, introduction, experimental production and production of software data bases and hardware; the creation of new artificial intelligence and neurone system information technology; scientific research and development work to create and implement information technology projects; the production of word processors, copying machines, addressing machines, calculators, cash registers, franking machines, ticket machines, office machines and equipment, computers and other data processing machines; the production of electronic and radio elements, transmission apparatus, receivers, recording and reproduction machines; the production of home electronic equipment; the production of finished textile items, except for clothing; the production of knitwear; the production of clothing made from textile products; the production of silk cloth and items made from it; the production of non-woven fabric and items made from it; the production of carpets, carpet items and tapestries;
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the production of cotton cellulose and its derivatives; the production of high-quality paper and raw cotton; the production of leather items; the chemical industry; the production of rubber and plastic items; the production of other non-metallic mineral products; the metallurgy industry; the production of finished metal products; the production of machines and equipment; the production of petrochemical products, and also the production of associated, combined production and technology; the provision of tourist services. A list of the goods, work or services listed in subpoint 3) of this point shall be determined by the Government of the Republic of Kazakhstan. 2. The following shall not be recognised as organisations operating in special economic zones: 1) 2) 3) 4) 3. subsoil users; organisations producing excisable products; organisations applying special tax regimes; organisations applying preferences.
Any income received (receivable) shall be treated as income from the types of activities listed in subpoint 3) of point 1 of this article based on confirmation from the executive body or administration in the special economic zone and issued in accordance with the procedure and in the format established by the authorised body for the administration of the relevant industry sector, with the agreement of the authorised body. The provisions of this chapter shall be valid for special economic zones created in accordance with legislation of the Republic of Kazakhstan before 1 January 2009.
4.
Article 151. Calculation, Procedure and Deadline for the Payment of Tax 1. Organisations operating in special economic zones shall calculate taxes in accordance with the procedure established by this Code, taking into account the specific details stipulated by points 2 and 3 of this article. To determine corporate income tax payable to the budget, corporate income tax calculated in accordance with article 139 of this Code shall be decreased by 100%. The tax reduction stipulated by this point shall also apply for corporate income tax advance payments as determined in accordance with article 141 of this Code. 3. The following shall be applied to objects of taxation in special economic zones and that are used to perform the activities listed in subpoint 3) of point 1 of article 150 of this Code: 1) a coefficient 0 to the corresponding land tax rates; 110
2.
2)
a 0% rate to the average annual value of objects of taxation for property tax.
Article 152. Tax Period and Tax Reporting The tax period, procedure and deadline for filing tax reporting on taxes and other obligatory payments to the budget shall be determined in accordance with this Code.
Section 6. Individual income tax Chapter 18. General provisions

Article 153. Payers 1. Payers of individual income tax shall be individuals with objects of taxation as defined in accordance with article 155 of this Code. Payers of tax on the gaming business and fixed tax shall not be payers of individual income tax with respect to income derived from the activities specified in articles 411 and 420 of this Code. Individual entrepreneurs applying the special tax regime for farms and farm holdings shall not be payers of individual income tax with respect to income from activities covered by the special tax regime in question.
2.
3.
Article 154. Special Considerations for the Taxation of Foreign Nationals and Stateless individuals who are Residents of the Republic of Kazakhstan 1. Income tax at the source of payment from the income of foreign nationals or stateless individuals who are residents of the Republic of Kazakhstan (hereafter resident foreign national) shall be calculated, withheld and transferred by a tax agent in accordance with the procedure established by chapter 25 of this Code, taking into account tax deductions and at the rates stipulated by articles 158 and 166 of this Code. Income from sources outside of the Republic of Kazakhstan that is received by a resident foreign national shall be taxable in accordance with the procedure established by article 178 and chapter 27 of this Code.
2.
Article 155. Objects of Taxation 1. Objects of taxation for individual income tax purposes shall be individuals income in the form of: 1) 2) 2. income taxable at the source of payment; income not taxable at the source of payment.
Objects of taxation shall be determined as the difference between taxable income, taking into consideration the adjustments stipulated by article 156 of this Code, and tax deductions in those cases, in accordance with the procedure and up to the amounts stipulated by this section. The following shall not be regarded as an individuals income: 1) targeted social aid, benefits and compensation payable from the budget in the amounts established by legislation of the Republic of Kazakhstan; damages for harm caused to an individuals life and health in accordance with legislation of the Republic of Kazakhstan;
3.
2)
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3)
compensation paid to employees when their work involves a travel element, involves business trips within areas served 0.35 of the monthly calculation index set for the relevant financial year by the law on the state budget, for each such day; business trip compensation, unless otherwise established by this article: established in subpoints 1), 2) and 4) of article 101 of this Code; per diems of up to 6 times the monthly calculation index set for the relevant financial year by the law on the state budget - for the period an individual is on a business trip within the Republic of Kazakhstan, up to 40 days; per diems of up to 8 times the monthly calculation index set for the relevant financial year by the law on the state budget - for the period an individual is on a business trip outside of the Republic of Kazakhstan, up to 40 days;
4)
5)
compensation for business trips paid by state institutions, except for state institutions maintained by budget funds and the budget of the National Bank of the Republic of Kazakhstan, up to the amounts established by legislation of the Republic of Kazakhstan; compensation for business trips paid by state institutions maintained by budget funds and the budget of the National Bank of the Republic of Kazakhstan, up to the amounts and in accordance with the procedure established by legislation of the Republic of Kazakhstan; compensation of documented travel expenses, expenses for the transportation of property, to rent premises for a period of no more than 30 calendar days when an employee is transferred to work in a different location along with an employer; non-deductible employer expenses not attributable to income generating activities, which have been allocated to specific individuals; field allowances for employees engaged in geological exploration, topographic and reconnaissance work in field conditions, up to the amounts established by legislation of the Republic of Kazakhstan;
6)
7)
8)
9)
10) an employers accommodation and catering expenses, up to per diem limits established in subpoint 4) of this point, to support individuals working on rotation at production facilities, and provide suitable working conditions and ensure rest periods between shifts; 11) expenses from delivering employees from their place of residence (stay) in the Republic of Kazakhstan to their place of work and back again; 12) the cost of special clothing, footwear, other means of individual protection and first aid, soap, disinfectant, milk or other equivalent food products for diet therapy and preventive nutrition according to provisions established by legislation of the Republic of Kazakhstan; 13) insurance payments under obligatory employer liability insurance agreements with respect to the life and health of employees while performing their employment (professional) duties; 14) compensation for material damages awarded by a court; 15) dividends, interest, winnings previously subject to individual income tax at the source of payment, provided documents are available to confirm that tax has been withheld at the source of payment; 16) pension savings in pension savings funds sent to insurance organisations for life insurance purposes, to pay insurance premiums under a cumulative insurance (annuity) agreement, and also redemption amounts under annuity pension agreements sent to insurance organisations in accordance with the procedure stipulated by legislation of the Republic of Kazakhstan; 17) late payment interest accrued for the late withholding (accrual) and (or) transfer of obligatory pension contributions, in the amounts established by legislation of the Republic of Kazakhstan;
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18) the value of property received as humanitarian aid; 19) capital gains from the realisation of motor vehicles and trailers subject to state registration, and which have been owned for at least one year; 20) capital gains from the realisation of residential premises, dachas, garages, small holdings owned for at least one year from the moment ownership rights were registered; 21) capital gains from the realisation of land plots and (or) land allotments owned for at least one year, and provided for individual construction, small holding, dacha and garage construction purposes, and on which the objects referred to in subpoint 1) of point 2 of article 180 of this Code are located; 22) capital gains from the realisation of land plots and (or) land allotments and provided for individual construction, small holding, dacha and garage construction purposes, and on which the objects referred to in subpoint 1) of point 2 of article 180 of this Code are not located, if the period between the date title documents for the purchase and disposal of a land plot and (or) land allotment is a year or more; 23) capital gains on property requisitioned for state needs in accordance with legislation of the Republic of Kazakhstan; 24) the refund of an individual lessors expenses to maintain and repair leased property, or a lessees expenses to maintain and repair property leased from an individual; 25) the amount by which the market value of the underlying asset of an option exceeds the option exercise price at the moment the option is exercised. An option exercise price is the price at which an underlying asset is fixed in option documentation; 26) the value of property transferred to an individual free of charge in the form of advertising, up to the value of twice the monthly calculation index set for the relevant financial year by the law on the state budget. Article 156. Non-Taxable Income 1. The following types of income shall be excluded from an individuals taxable income: 1) 2) alimony received for children and dependents; interest payable to individuals on their holdings in banks or organisations performing certain banking operations under license of the authorised state body for the regulation and control of the financial market and financial organisations; interest on debt securities; interest on state equity securities, agency bonds and capital gains derived from the realisation of state equity securities and agency bonds; dividends and interest on securities that are in an official list of a stock exchange operating in the Republic of Kazakhstan on the day the dividends and interest are accrued; income on the units of unit-investment funds when purchased back by the funds managing company; dividends received from a resident legal entity provided the following are met simultaneously: shares and participation interest have been held for at least three years; 50% of the value of charter (shareholder) capital or shares (participation interest) of a legal entity or consortium, on the day of payment, consists of the property of a person (persons) that is (are) not a subsoil user(s); 113
3) 4)
5)
6)
7)
8)
all payments made to military personnel during military service, employees of the bodies of internal affairs, financial police, bodies and institutions of the criminal and executive system and the state fire service who have been awarded a special rank in view of the performance of their professional duties; lottery winnings of up to 50% of the minimum salary set by the law on the state budget for the relevant financial year;
9)
10) payments in relation to social work and professional training, which are made from the state budget and (or) grants, up to the minimum salary set by the law on the state budget for the relevant financial year; 11) payments made from grants (except for employment compensation); 12) payments in accordance with legislation of the Republic of Kazakhstan on the social protection of individuals who have suffered as a result of an environmental disaster or nuclear testing at test sites; 13) the income of veterans of the Great Patriotic War and individuals of equivalent status; group I and II registered disabled individuals; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; and also the income of one of the parents of an individual handicapped since childhood - up to a limit of 45 times the minimum salary per year as set by the law on the state budget for the relevant financial year; 14) the income of group III registered handicapped individuals up to 27 times the minimum salary per year as set by the law on the state budget for the relevant financial year; 15) capital gains from the realisation of shares and participation interest in a legal entity or consortium created in accordance with legislation of the Republic of Kazakhstan. This subpoint shall apply if 50% of the value of charter (shareholder) capital or shares (participation interest) of a legal entity or consortium, on the day of payment, consists of the property of a person (persons) that is (are) not a subsoil user(s); 16) capital gains from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan using the open trade method; 17) one-off payments from the state budget (except for employment compensation); 18) payments made to pay for medical services (except for cosmetic services), for childbirth or burial, up to a limit of 8 times the minimum salary set by the law on the state budget for the relevant financial year, for each type of payment made during the calendar year. This income shall be exempt from taxation provided documents are available to confirm the receipt of medical services (except for cosmetic services) and actual expenses to pay for them, birth certificates, death certificates; 19) the official income of diplomatic or consular employees who are not citizens of the Republic of Kazakhstan; 20) the official income of foreign nationals employed in the state service of a foreign country in which their income is taxable; 21) the official foreign currency income of individuals who are citizens of the Republic of Kazakhstan serving in diplomatic or equivalent representations of the Republic of Kazakhstan abroad, which is paid from state budget resources; 22) pension payments from the State Centre for Pension Payments;
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23) premiums on deposits to housing construction savings (state premiums) payable from the state budget in amounts established by legislation of the Republic of Kazakhstan; 24) employer expenses allocated, in accordance with legislation of the Republic of Kazakhstan, for employee training, professional development or retraining in a speciality related to their employers operating activities, except for business trip compensation stipulated by subpoints 4)-6) of point 3 of article 155 of this Code. For the purpose of this subpoint, employee training, professional development or retraining in a speciality related to an employers operating activities shall cover: expenses actually incurred to pay for training; actual accommodation expenses incurred up to the limits set by the government of the Republic of Kazakhstan; actual expenses incurred for travel to a place of study and back again once studies have been completed; funds allocated by an employer to pay an employee, up to: 6 times the monthly calculation index set by the law on the state budget for the relevant financial year, per day if an employee is on training, professional development or retraining in the Republic of Kazakhstan; 8 times the monthly calculation index set by the law on the state budget for the relevant financial year, per day - if an employee is on training, professional development or retraining outside of the Republic of Kazakhstan; 25) training expenses incurred in accordance with subpoint 3) of point 1 of article 133 of this Code; 26) social payments from the State Social Insurance Fund; 27) scholarships payable to students at educational organisations, up to the limits set by legislation of the Republic of Kazakhstan for state scholarships; 28) the value of property received by an individual as a gift or inheritance from another individual. The provisions of this subpoint shall not cover property received by individual entrepreneurs to perform their duties, or pension savings inherited in accordance with the procedure established by legislation payable by pension savings funds; 29) the value of property received as charity and sponsorship aid; 30) the cost of tickets to childrens camps for children below the age of 16 years; 31) insurance payments related to an insurance case that arose while an agreement was in force, and which are payable under any form of insurance, except for income stipulated by article 175 of this Code; 32) insurance premiums payable by an employer in accordance with employees compulsory and (or) cumulative insurance agreements; 33) insurance payments made against the death of an insured individual under a cumulative insurance agreement; 34) voluntary professional pension contributions to pension savings funds in the amount established by legislation of the Republic of Kazakhstan; 35) material benefit from an interest saving for an employee using funds borrowed from (loaned by) an employer;
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36) a settlers net trust management income under a trust management agreement or that of a beneficiary from other trust management cases, which has been received from a resident individual acting as a trust manager; 37) a material benefit from an interest saving if a bank loan has been provided to a payment card holder for an interest free period as established in an agreement concluded between the bank and client; 38) an amount credited by an issuing bank against its funds to a payment card holders account when making cash-free payments using the payment card; 39) dividends received from the non-resident legal entity referred to in point 1 of article 224 of this Code and allocated from profit or a part of it subject to individual income tax in the Republic of Kazakhstan in accordance with article 224 of this Code. 2. The income of group I, II and III handicapped individuals shall be exempt from taxation as stipulated by point 1 of this article from the month in which they were registered as such.
Article 157. Non-Taxable Aggregate Annual Income For state registration purposes in accordance with legislation of the Republic of Kazakhstan, individual entrepreneurs non-taxable income for the calendar year shall be 12 times the minimum salary set by the law on the state budget for the relevant financial year. Article 158. Tax Rates 1. Taxpayer income, except for income indicated in point 2 of this article, shall be taxable at the rate of 10%. Dividend income received from sources in the Republic of Kazakhstan and abroad shall be taxed at the rate of 5%.
2.
Article 159. Tax Period 1. The tax period for tax agents to calculate individual income tax from income taxable at the source of payment shall be the calendar month. The tax period for calculating individual income tax from income not taxable at the source of payment shall be determined in accordance with article 148 of this Code.
2.
Chapter 19. Income taxable at the source of payment

Article 160. Income Taxable at the Source of Payment The following types of income shall be recognised as income taxable at the source of payment: 1) 2) 3) 4) 5) 6) employee income; an individuals income from a tax agent; pension payments from pension savings funds; income in the form of dividends, interest and winnings; scholarships; income under cumulative insurance agreements.
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Article 161. Calculation, Withholding and Payment of Tax 1. Tax agents shall calculate individual income tax on income taxable at the source of payment when accruing taxable income. Tax agents shall withhold individual income tax no later than the day income taxable at the source of payment is paid, unless otherwise stipulated by this Code. Tax agents shall transfer individual income tax on paid income according to their location on or before the 25th of the month following the month of payment, unless otherwise stipulated by this article. Tax agents shall pay tax for structural subdivisions to the budgets at the location of the structural subdivisions. 4. The issuer of underlying assets for depository receipts shall calculate and withhold tax from income on the depository receipts in question. The deadline for tax agents applying special tax regimes for small businesses based on a simplified declaration and for farms or farm holdings to pay individual income tax has been established by articles 438 and 446 of this Code.
2.
3.
5.
Article 162. Individual Income Tax and Social Tax Declarations 1. Tax agents shall file a declaration of individual income tax and social tax from resident individuals of the Republic of Kazakhstan and a declaration of individual income tax and social tax from foreign nationals and stateless individuals with the tax bodies at the place tax is paid on or before the 15th of the second month following the reporting quarter. Tax agents applying special tax regimes for farms or farm holdings and for small businesses based on a simplified declaration shall not file an individual income tax and social tax declaration for activities not covered by these regimes.
2.
1. Employee Income Article 163. Employee Income 1. An employees income taxable at the source of payment shall be determined as the difference between taxable income accrued by an employer, inclusive of adjustments stipulated by article 156 of this Code, and the tax deductions stipulated by article 166 of this Code. Unless otherwise stipulated by this article, an employees taxable income shall be any income received from an employer in monetary form or in kind, including income received in the form of material benefits, and also income under civil agreements concluded in accordance with legislation of the Republic of Kazakhstan between employers and third parties, and under which employees receive the income referred to in articles 164 and 165 of this Code. The following shall not be employee taxable income: 1) 2) 3) 4) 5) pension payments from pension savings funds; dividend income, interest and winnings; income under cumulative insurance agreements; income not taxable at the source of payment as determined by article 177 of this Code; payments to employees for personal property purchased from them;
2.
3.
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6)
material benefit from an interest saving by using credit (loans, microcredit) received from an employer.
Article 164. Employee Income in Kind 1. Taxable income received by an employee in kind shall include: 1) 2) employment compensation received in kind; the value of property received from an employer free of charge. The value of work performed and services provided free of charge shall be determined according to the amount of expenses incurred to provide the work or services in question; payment made by an employer for goods, work or services received by an employee from third parties.
3)
2.
The value of the goods, work or services referred to in point 1 of this article, inclusive of applicable value added tax and excise duty, shall be considered taxable employee income in kind.
Article 165. Employee Income in the Form of Material Benefits Taxable employee income received in the form of material benefits shall include: 1) a negative difference between the value of goods, work or services realised to employees, and the purchase price or cost of those goods, work or services; an employee debt or liability to an employer written off by that employer; employer expenses to pay insurance premiums for employee insurance agreements; employer costs to reimburse employee costs not connected with its activities. Tax Deductions
2) 3) 4)
Article 166. 1.
Employees shall be entitled to the following tax deductions on their taxable income in kind for each month during the calendar year irrespective of the frequency of payments: 1) the minimum salary set by the law on the state budget for the relevant financial year, for the month in which income is accrued. The total tax deduction for the year should not exceed nontaxable aggregate annual income established by article 157 of this Code; obligatory pension contributions in the amount established by pension legislation of the Republic of Kazakhstan; voluntary pension contributions made in ones own favour; insurance premiums made by an individual in his own favour according to cumulative insurance agreements; amounts used to repay interest on loans received by a resident individual of the Republic of Kazakhstan in housing construction savings banks to improve living conditions in the Republic of Kazakhstan, in accordance with legislation of the Republic of Kazakhstan on housing construction savings; expenses to pay medical (except for cosmetic) services up to the amount and under the conditions established by point 6 of this article.
2)
3) 4)
5)
6)
2.
If a tax deduction stipulated by subpoint 1) of point 1 of this article exceeds an employees taxable income for the month, including adjustments stipulated by article 156 of this Code, after reductions
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for obligatory pension contributions, then the excess shall be carried forward to subsequent months within the calendar year to reduce the employees taxable income. 3. If an individual has been an employee for less than 15 working days during a particular month, then the employee shall not be entitled to a tax deduction in accordance with subpoint 1) of point 1 of this article. The right to a tax deduction in accordance with subpoints 1), 3)-6) of point 1 of this article shall be provided to a taxpayer on income received from one employer, based on an application. The right to the tax deductions established by subpoints 3)-5) of point 1 of this article shall be provided if the following documents are filed: 1) a voluntary pension agreement and document confirming payment of voluntary pension contributions; an insurance agreement and documents confirming payment of insurance premiums; an agreement with a housing construction savings bank for a bank loan to conduct measures to improve living conditions in the Republic of Kazakhstan, and a document confirming payment of loan interest.
4.
5.
2) 3)
6.
A taxpayer shall receive the tax deduction established by subpoint 6) of point 1 of this article provided: 1) the total tax deduction for the calendar year does not exceed 8 times the minimum salary set by the law on the state budget for the relevant financial year; an employee has provided documents to confirm the receipt of medical (except for cosmetic) services and actual expenses to pay for them; the provisions of subpoint 18) of point 2 of article 156 of this Code have not been applied to these expenses.
2)
3)
Article 167. Calculation and Withholding of Tax Individual income tax on employee income taxable at the source of payment shall be calculated by applying the rate established by point 1 of article 158 of this Code to an employees income taxable at the source of payment and determined in accordance with article 163 of this Code. 2. Income of an Individual from a Tax Agent Article 168. Income of an Individual from a Tax Agent 1. The income of an individual from a tax agent that is taxable at the source of payment shall be determined as the taxable income of an individual from a tax agent, inclusive of adjustments stipulated by article 156 of this Code. Unless otherwise established by this article, the taxable income of an individual from a tax agent shall be: 1) an individuals income from civil and legal agreements concluded with a tax agent in accordance with legislation of the Republic of Kazakhstan; payments to individuals.
2) 2.
For the purposes of this article, taxable income shall not include: 1) income not taxable at the source of payment as determined by article 177 of this Code;
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2) 3) 4)
payments to individuals for personal property purchased from them; the income referred to in subpoints 1) and 3)-6) of article 160 of this Code; material benefit from an interest saving for the use of credit (loan, microcredit) received from legal entities and individual entrepreneurs.
Article 169. Calculation of Tax Individual income tax shall be calculated by applying the rate set in point 1 of article 158 of this Code to an individuals income from tax agents taxable at the source of payment, as determined in accordance with article 168 of this Code. 3. Pension Payments from Pension savings funds Article 170. Pension Payments 1. Pension income taxable at the source of payment shall be determined as taxable pension income, taking into account the adjustments stipulated by article 156 of this Code, and reduced by tax deductions stipulated by this article. Taxable pension income shall include payments made by pension savings funds: 1) from taxpayers pension savings formed from obligatory pension contributions and (or) voluntary professional pension contributions in accordance with legislation of the Republic of Kazakhstan, voluntary pension contributions in accordance with a voluntary pension agreement. The payments stipulated by this subpoint, for the purpose of pension income taxable at the source of payment, shall be subject to a tax deduction of the minimum salary set by the law on the state budget for the relevant financial year, for each month income is accrued, irrespective of the frequency of payments, unless otherwise established by this article; in accordance with legislation of the Republic of Kazakhstan, to resident individuals of the Republic of Kazakhstan who have reached pension age and who are leaving or who have left for a permanent place of residence outside of the Republic of Kazakhstan. The payments stipulated by this subpoint, for the purpose of pension income taxable at the source of payment, shall be subject to a tax deduction of 12 times the minimum salary set by the law on the state budget for the relevant financial year, unless otherwise established by this article; in accordance with legislation of the Republic of Kazakhstan to resident individuals of the Republic of Kazakhstan who have not reached pension age and who are leaving or who have left for a permanent place of residence outside of the Republic of Kazakhstan; to individuals in the form of pension savings inherited in accordance with the procedure established by legislation of the Republic of Kazakhstan.
2)
3)
4)
2.
If a contributor receives pension payments from obligatory pension contributions and (or) voluntary pension contributions, and (or) voluntary professional pension contributions concurrently in a single month, a tax deduction equal to the minimum salary set by the law on the state budget for the relevant financial year shall be taken for each month income is accrued, irrespective of the frequency payments are made. In this respect, to calculate income in the form of pension payments taxable at the source of payment, total taxable income in the form of pension payments shall be reduced by the value of the tax deduction, taking into account adjustments stipulated by article 156 of this Code. This tax deduction shall be made by one of the pension savings fund that the taxpayer applied to.
Article 171. Calculation of Tax Individual income tax shall be calculated by applying the rate established by point 1 of article 158 of this Code to income in the form of pension payments taxable at the source of payment, as determined in accordance with article 170 of this Code.
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4. Income in the Form of Dividends, Interest and Winnings Article 172. Calculation of Tax 1. Individual income tax shall be calculated by applying the rates in points 1 and 2 of article 158 of this Code to income accrued in the form of dividends, interest and winnings taxable at the source of payment. Taxable income payable by a tax agent in the form of dividends, interest and winnings, taking into account the adjustments stipulated by article 156 of this Code shall be income in the form of dividends, interest and winnings taxable at the source of payment. For the purposes of this section, net income from a settlers trust management under a trust management agreement or that of a beneficiary from other trust management cases, which has been received from a resident individual acting as a trust manager shall also be regarded as dividends. 2. Individual income tax withheld from winnings or interest, provided documents exist confirming that the tax has been withheld at the source of payment, shall be credited against individual income tax assessed for the tax period by an individual entrepreneur calculating and paying tax in accordance with the procedure established by articles 178 and 179 of this Code.
5. Scholarships Article 173. Scholarships Income in the form of scholarships taxable at the source of payment shall be determined as income in the form of a taxable scholarship, taking into account the adjustments stipulated by article 156 of this Code. Unless otherwise stipulated by this article, income in the form of taxable scholarships shall be funds allocated by a tax agent for payment to: students in education institutions; cultural and scientific figures, members of the mass media and other individuals. Income in the form of taxable scholarships shall not be regarded as the income stipulated by subpoints 1)-4) and 6) of article 160 of this Code. Article 174. Calculation of Tax Individual income tax shall be calculated by applying the rate established in point 1 of article 158 of this Code to the scholarship taxable at the source of payment. 6. Income from Cumulative Insurance Agreements Article 175. Income from Cumulative Insurance Agreements 1. Income from cumulative insurance agreements taxable at the source of payment shall be determined as the difference between taxable income from cumulative insurance agreements, taking into account adjustments stipulated by article 156 of this Code, and tax deductions in those cases and amounts stipulated by this article. Taxable income from cumulative insurance agreements shall be: 1) insurance payments made by insurance organisations whose insurance premiums were paid:
2.
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against pension savings in pension savings funds. These payments, for the purpose of income in the form of pension payments taxable at the source of payment, shall be subject to a tax deduction equalling the minimum salary set by the law on the state budget for the relevant financial year, for each month income is accrued, irrespective of the frequency payments are made; at the expense of insurance premiums made in favour of an individual by the individual himself under cumulative insurance agreements; at the expense of insurance premiums made by an employer in favour of an employee under cumulative insurance agreements; 2) redemption amounts payable in those cases where a cumulative insurance agreement is terminated ahead of schedule; the amount by which insurance payments made by an insurance organisation exceed insurance premiums paid using funds not referred to in subpoint 1) of this article.
3)
Article 176. Calculation of Tax Individual income tax shall be calculated by applying the rate established by point 1 of article 158 of this Code to income paid under cumulative insurance agreements and taxable at the source of payment, as determined in accordance with article 175 of this Code.
Chapter 20. Income not taxable at the source of payment

Article 177. Income not taxable at the Source of Payment Income not taxable at the source of payment shall include the following: 1) 2) 3) 4) property income; the income of individual entrepreneurs; the income of private notaries and advocates; other types of income.
Article 178. Calculation of Individual Income Tax on Income not taxable at the Source of Payment 1. Taxpayers, except for those referred to in points 4 and 5 of this article, shall calculate individual income tax on income not taxable at the source of payment themselves by applying the rate established by point 1 of article 158 of this Code to income not taxable at the source of payment. Income not taxable at the source of payment shall be determined as the difference between taxable income, taking into account the adjustments stipulated by article 156 of this Code, and tax deductions established by point 1 of article 166 of this Code, taking into account the provisions of points 5 and 6 of article 166 of this Code, unless otherwise established by this article and article 182 of this Code. 2. Where a taxpayer has several types of income not taxable at the source of payment, except for the income of private notaries and advocates, taxpayers shall calculate individual income tax themselves by applying the rate established by point 1 of article 158 of this Code to all types of income not taxable at the source of payment. The tax deductions established by point 1 of article 166 of this Code shall apply for individual income tax on aggregate income not taxable at the source of payment if the deductions were not made when determining employee income.
3.
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4.
Individual entrepreneurs, except for those referred to in point 5 of this article, shall calculate tax on their income for the tax period themselves. Tax shall be calculated by applying the rate established by point 1 of article 158 of this Code against the individual entrepreneurs income, and reduced by the income and expenses stipulated by article 133 of this Code, and also by losses carried forward in accordance with article 137 of this Code. Individual entrepreneurs applying special tax regimes for small businesses based on patents or simplified declarations shall calculate individual income tax on income taxable under the special tax regimes in accordance with chapter 61 of this Code.
5.
Article 179. Tax Payment Deadline 1. Taxpayers shall pay individual income tax at the end of the tax period at their location within 10 calendar days from the deadline established for filing an individual income tax declaration. Individual entrepreneurs applying special tax regimes for small businesses based on patents or simplified declarations shall pay individual income tax on income taxable under these special tax regimes in accordance with chapter 61 of this Code.
2.
1. Property Income Article 180. Property Income 1. A taxpayers taxable property income shall include: 1) 2) 2. capital gains from the realisation of property; income received from leasing property to persons not acting as tax agents.
Capital gains from the realisation of the following property shall be recognised as capital gains from the realisation of property: 1) 2) residential premises, dachas, garages, small holdings owned for less than 12 months; land plots and (or) allotments owned for less than 12 months and used in individual residential construction; small holding, dacha and garage construction, and which have been equipped with the facilities listed in subpoint 1) of this point; land plots and (or) allotments provided for individual residential construction; private and small holding; dacha and garage construction, and which have not been equipped with the facilities referred to in subpoint 1) of this point, if the period between the dates legal documents for the purchase and disposal of a land plot and (or) allotment is less than 12 months; land plots (and) or allotments provided for purposes not listed in subpoints 2) and 3) of this point; securities and participation interest in a legal entity; immovable property, except for that referred to in subpoints 1)-4) of this point; motor vehicles and trailers subject to state registration, and which have been owned for less than 12 months.
3)
4)
5) 6) 7)
An agent, in the event it realises a motor vehicle and (or) trailer on the basis of a power of advocate to drive a motor vehicle and (or) trailer with the right to disposal, for property income purposes shall inform the owner of the arithmetic means of transport of the amount for which the arithmetic means of transport was realised, or pay individual income tax on behalf of the owner of the arithmetic means of transport, which shall be regarded as the fulfilment of the tax obligation of the owner of the arithmetic means of transport.
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If an agent realises a motor vehicle and (or) trailer on the basis of a power of advocate to drive a motor vehicle and (or) trailer with the right to disposal, capital gains shall be determined as the positive difference between the value at which the agent realised the arithmetic means of transport on behalf of the owner and the amount paid by the owner to purchase the realised means of transport. 3. Capital gains from the realisation of the property referred to in point 2 of this article, except for securities and participation interest, shall be the positive difference between the realisation value of property and its purchase value, unless otherwise established by this article. In the absence of a purchase value, capital gains shall be the positive difference between the realisation value of the property and the market value at the moment ownership rights to the realised property arise. 4. If immovable property purchased through participation interest in a residential construction is realised, any positive difference between the propertys realisation value and market value at the moment ownership rights to the realised property arose shall be recognised as capital gains, but no lower than the amount referred to in the participation interest agreement for the residential construction. A taxpayer should determine the market value at the moment ownership rights arise of the realised property referred to in subpoints 1) and 6) of point 2 of this article by the deadline set for filing an individual income tax declaration. For the purposes of this point, market value shall be the amount determined in a valuation report according to an agreement between an appraiser and taxpayer in accordance with legislation of the Republic of Kazakhstan on evaluation activities. 6. If the realised property referred to in subpoints 1) and 6) of point 2 of this article has no market value at the moment ownership rights arise, capital gains shall be the positive difference between the propertys realisation value and its appraisal value. Appraisal value shall be the value used by the authorised state body for the state registration of rights to immovable property and transactions with it to calculate property tax as at 1 January of the year in which ownership rights to the realised property arose. Capital gains from the realisation of securities and participation interest shall be determined in accordance with point 4 of article 87 of this Code, unless otherwise established by this article. Any positive difference between realisation value and purchase value shall be regarded as capital gains from the realisation of securities purchased by an individual under an option. Purchase value shall include the exercise price and option purchase costs.
5.
7.
8.
2. Income of Private Notaries and Advocates Article 181. Income of Private Notaries and Advocates Any income received from advocacy or notary activities, including payments for providing legal assistance and notary services, and any amounts received as compensation for defence and representation expenses shall be recognised as the income of private notaries and advocates. Article 182. Calculation and Payment of Tax 1. Individual income tax payable on the income of private notaries and advocates shall be calculated monthly at the end of each month by applying the rate established in point 1 of article 158 of this Code to the income received.
th Tax calculated shall be payable monthly on or before the 5 of the month following the month for which income was calculated.
2.
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3. Income of Individual Entrepreneurs Article 183. Income of Individual Entrepreneurs 1. An individual entrepreneurs income shall be determined using the procedure established for identifying objects of corporate income tax in accordance with articles 83-133, 136, 137 and 224 of this Code, unless otherwise established by this Code. The income of individual entrepreneurs using special tax regimes for small businesses based on a patent or simplified declaration shall be determined in accordance with chapter 61 of this Code.
2.
4. Other Income Article 184. Other Income 1. A taxpayers other taxable income shall include: 1) 2) income received from sources outside of the Republic of Kazakhstan; income from services provided and work performed in the Republic of Kazakhstan by diplomatic or equivalent representations that have been accredited in the Republic of Kazakhstan, and which are not tax agents; the income of domestic workers from employment agreements concluded in accordance with labour legislation of the Republic of Kazakhstan.
3)
2.
The income referred to in subpoint 1) of point 1 of this article shall be taxed taking into account the specific conditions established by chapter 27 of this Code.
Chapter 21. Individual income tax declaration

Article 185. Individual Income Tax Declarations 1. The following resident taxpayers shall file individual income tax declarations: 1) 2) 3) 4) 5) 2. individual entrepreneurs; private notaries and advocates; individuals in receipt of property income; individuals in receipt of other income, including income outside of the Republic of Kazakhstan; individuals with funds in bank accounts in foreign banks outside of the Republic of Kazakhstan.
Deputies of the Parliament of the Republic of Kazakhstan, judges and individuals obligated to file declarations in accordance with the constitutional law of the Republic of Kazakhstan On Elections, the law of the Republic of Kazakhstan On the Fight against Corruption and the Criminal Executive Code of the Republic of Kazakhstan, shall file a declaration on income and property that is an object of taxation and located in the Republic of Kazakhstan and abroad. Individual entrepreneurs applying the special tax regime for small businesses based on a patent or simplified declaration shall not file an individual income tax declaration with respect to income included in an object of taxation in accordance with article 427 of this Code.
3.
Article 186. Declaration Filing Deadline An individual income tax declaration shall be filed with a tax body at a taxpayers place of residence on or before 31 March of the year following the reporting tax period, except for those cases stipulated by
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the constitutional law of the Republic of Kazakhstan On Elections and the law of the Republic of Kazakhstan On the Fight against Corruption. Article 187. Failure to confirm a Tax Payment If taxpayers filing an individual income tax declaration in accordance with subpoint 4) of point 1 and point 2 of article 185 of this Code fail to confirm payment of individual income tax, individual income tax shall be calculated by applying the rate established by point 1 of article 158 of this Code to the income for which payment of individual income tax has not been confirmed.
Section 7. Special considerations of international taxation Chapter 22. General provisions

Article 188. General Principles of International Taxation 1. Residents of the Republic of Kazakhstan shall pay taxes in the Republic of Kazakhstan in accordance with the provisions of this Code on income received from sources in the Republic of Kazakhstan and also from income received from sources outside of the Republic of Kazakhstan. Non-residents shall pay taxes in the Republic of Kazakhstan on income received from sources in the Republic of Kazakhstan, in accordance with the provisions of this Code. Non-residents operating in the Republic of Kazakhstan through a permanent establishment shall also pay taxes in the Republic of Kazakhstan in accordance with the provisions of this Code on income received from sources outside of the Republic of Kazakhstan and attributable to the activities of the permanent establishment in question. 3. Residents and non-residents shall also pay other taxes and other obligatory payments to the budget in the Republic of Kazakhstan as established by this Code, provided such obligations arise.
2.
Article 189. Residents 1. For the purposes of this Code, residents of the Republic of Kazakhstan shall be recognised as those individuals permanently residing in the Republic of Kazakhstan, or not permanently residing in the Republic of Kazakhstan, but whose centre of vital interest is in the Republic of Kazakhstan. An individual shall be regarded as being permanently residing in the Republic of Kazakhstan for the current tax period if the individual spends no less than 183 calendar days in the Republic of Kazakhstan in any consecutive 12-month term which ends in the current tax period. If an individual spends a part of a day in the Republic of Kazakhstan, that day shall be counted as a complete day. An individual shall also be deemed as permanently residing in the Republic of Kazakhstan for the current tax period if the number of calendar days spent in the Republic of Kazakhstan in the current tax period and the two previous tax periods amounts to no less than 183 days. In this respect, permanent residence shall be determined by applying the following coefficients to each tax period: 1 x the number of days resident in the current tax period + 1/3 x the number of days resident in the first previous tax period + 1/6 x the number of days resident in the second previous tax period, where: 1 is the coefficient for the current tax period; 1/3 is the coefficient for the first previous tax period; 1/6 is the coefficient for the second previous tax period.
2.
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An individual spending less than 30 calendar days in the Republic of Kazakhstan during a particular current tax period shall not be deemed as permanently residing in the Republic of Kazakhstan. For the purposes of this point, an individual shall be considered as non-resident for the period following the final day of presence in the Republic of Kazakhstan, if the individual does not become resident in the year following the year in which presence in the Republic of Kazakhstan ends. 3. An individuals centre of vital interest shall be considered as being in the Republic of Kazakhstan where the following conditions are fulfilled simultaneously: 1) the individual has citizenship of the Republic of Kazakhstan or permission to live in the Republic of Kazakhstan (residence permit); the individuals family and (or) close relatives reside in the Republic of Kazakhstan; the individual and (or) individuals family members own, or otherwise have at their disposal, immovable property in the Republic of Kazakhstan permanently available for residence.
2) 3)
4.
The following individuals who are citizens of the Republic of Kazakhstan, who have filed an application for citizenship of the Republic of Kazakhstan or for permanent residency in Kazakhstan without citizenship of the Republic of Kazakhstan shall be regarded as resident individuals, regardless of their period of presence in the Republic of Kazakhstan or any other criteria set forth in this article: 1) individuals posted overseas by the state authorities, including employees of diplomatic, consular institutions, and international organisations, as well as their family members; the crew of means of transport belonging to legal entities or citizens of the Republic of Kazakhstan performing regular international transportation; military and civilian personnel employed on military bases, or members of military units, groups, contingents or associations deployed outside the Republic of Kazakhstan; individuals working outside the Republic of Kazakhstan in establishments belonging to the Republic of Kazakhstan or persons of the Republic of Kazakhstan (including employment based on concession agreements); students, interns or trainees based outside the Republic of Kazakhstan for educational purposes or undergoing training programmes - for the entire term of their instruction or traineeship; teachers and scientists working outside the Republic of Kazakhstan for teaching, consulting or research purposes - for the entire term of their teaching assignment or research project; those outside the Republic of Kazakhstan for treatment purposes or who are undergoing health and medicinal procedures.
2)
3)
4)
5)
6)
7)
5.
For the purposes of this Code, the term resident shall also apply to legal entities created in compliance with legislation of the Republic of Kazakhstan, and (or) those legal entities whose place of effective management (actual management body) is in the Republic of Kazakhstan. The place of effective management (actual management body) shall mean the place where the management body (board of directors or equivalent) meets, where basic management and (or) controls are carried out, and where strategic commercial decisions on the legal entitys business activities are taken.
Article 190. Non-Residents 1. For the purposes of this Code, non-residents shall be:
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1)
individuals and legal entities that are not residents in accordance with the provisions of article 189 of this Code; despite the provisions of article 189 of this Code, foreign nationals or stateless individuals who have been recognised as non-residents in accordance with the provisions of an international treaty to avoid double taxation.
2)
2.
An individual who has been recognised as a non-resident in accordance with subpoint 2) of point 1 of this article should file the following documents to a tax agent or to the tax body at its place of residence by the date income is received or tax reporting is filed: a document confirming a non-residents residence that meets the requirements of point 4 of article 219 of this Code;
3.
a notarised copy of a document confirming identity (passport).
Article 191. Permanent Establishment of a Non-Resident 1. A non-residents permanent establishment in the Republic of Kazakhstan shall be recognised as the permanent place through which it performs business activities in the Republic of Kazakhstan, including activities through an authorised entity, in particular: 1) any location where activities related to the production, processing, packaging, assembly, boxing and delivery of goods are conducted; any place of management; any place where activities associated with the production of natural resources, including the place of extraction for hydrocarbons, are conducted; any place where activities (including supervision and monitoring) involving gas and oil pipelines are conducted, and natural resources are explored; any place where activities are conducted to install, assemble, erect, lay, launch and (or) service equipment, except to assemble power-generating and technical equipment; any place where activities are carried out to install, tune and operate gaming machines (including consoles), computer networks and communication channels, amusements, transportation or any other types of infrastructure.
2) 3)
4)
5)
6)
When performing the activities referred to in subpoints 3) and 4) of this point, a non-resident shall be deemed as having created a permanent establishment from the earlier of the date a document enters into force certifying the non-residents right to perform the relevant activities (contract, agreement) or the date the activities actually start. 2. The permanent place of activity for providing services in the Republic of Kazakhstan shall be the place where services are provided through employees or other personnel hired by a non-resident for these purposes, if such activities continue in the Republic of Kazakhstan for more than six months within any consecutive 12-month period from the date business activities started in relation to a single project or related projects. Related projects are recognised as projects where contracts are interrelated or interdependent. Interrelated contracts shall be recognised as those contracts for which a non-resident or its subsidiaries or founder (shareholder, participant) provide identical or homogenous services (work) to one and the same tax agent or its related party. Interdependent contracts shall be those where an individual or legal entitys failure to fulfil obligations under one of them impacts the fulfilment of obligations under another contract. If a single project or related projects have resulted in operations that have created a permanent establishment in accordance with this point, the permanent establishment shall be recognised as having been created for each of the projects non-resident participants. If non-resident project participants fail to fulfil tax obligations, a permanent establishment will be regarded as having been
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created retroactively from the date business activities are started as part of a single project or related projects in relation to the non-resident concluding the project. If a general contractor responsible for executing a project (contract) hires a different legal entity as a subcontractor, then the period of time spent by the subcontractor in executing the project (contract) shall be the time spent by the general contractor in executing the project (contract). 3. A non-resident shall also be deemed to have created a permanent establishment in the Republic of Kazakhstan if: 1) 2) risks in the Republic of Kazakhstan are insured or re-insured through an authorised entity; goods are sold from a specific place in the Republic of Kazakhstan. In this respect, a permanent establishment shall be created from the date activities are started, except for subpoint 3) of this point; exhibitions are held in the Republic of Kazakhstan at which goods are realised, and if these activities last more than 10 days; a branch or representative office is opened, except for representative offices performing the activities referred to in point 6 of this article.
3)
4)
4.
Construction sites, assembly and installation objects, and design work shall create permanent establishments, regardless of the period these activities are conducted. The term construction site (facility) shall be understood to mean a location where work to erect and (or) reconstruct real estate, as well as to construct buildings and constructions, is carried out, as well as assembly work; to construct and (or) reconstruct bridges, roads, canals; to lay pipelines; to install power-generating and technical equipment. A construction site (facility) shall cease to exist from the day following the date on which an act of acceptance regarding the object being commissioned is signed (volume of work performed) and full payment is made for construction.
5.
Temporary breaks within a 12-month period and seasonal breaks in the activities stated in this article shall not result in the liquidation of a permanent establishment. A non-resident performing preparatory or auxiliary activities in the Republic of Kazakhstan that differ from its main (usual) activities shall not create a permanent establishment if these activities last for no longer than three years. In this respect, preparatory and auxiliary activities should be performed for the non-resident itself and not for other (third) parties. Preparatory and auxiliary activities shall be performed to: 1) use any place exclusively to store, dismantle and (or) supply goods belonging to a non-resident, before they are realised; keep a permanent place of activity exclusively to purchase goods without further realisation; keep a permanent place of activity exclusively to collect, process and (or) distribute information, advertising or study the market of goods, work or services realised by a non-resident, unless these activities are the non-residents main (usual) activities.
6.
2) 3)
7.
A non-resident performing business activities in the Republic of Kazakhstan through an independent agent (broker and (or) other independent intermediary acting on the basis of an authorisation, commission or consignment agreement or other similar agreement) shall not form a permanent establishment. The term independent agent shall be understood to mean a person that: 1) is not authorised to conclude contracts on behalf of a non-resident;
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2)
acts within the framework of its main (usual) activities and is both legal and economically independent from a non-resident; bears a business risk by virtue of the fact that it performs activities independently.
3) 8.
Notwithstanding the provisions of points 1 and 2 of this article, if a non-resident performs business activities in the Republic of Kazakhstan through a dependent agent (individual or legal entity), then the non-resident will be regarded as having a permanent establishment in relation to any activities that the dependent agent performs for this non-resident. In this respect, a dependent agent should: 1) 2) not be a dependent agent in accordance with point7 of this article; be entitled, by virtue of contractual relations, to represent its interests in the Republic of Kazakhstan, act and conclude contracts (agreements, treaties) in its name; not have its activities restricted to the activities listed in point 6 of this article.
3) 9.
A subsidiary of a non-resident legal entity created in accordance with legislation of the Republic of Kazakhstan shall be considered as the non-resident legal entitys permanent establishment if the subsidiary and non-resident legal entity have relations that meet the criteria of point 8 of this article. In other cases, a non-resident legal entitys subsidiary shall not be regarded as the permanent establishment of a non-resident legal entity.
10. A non-resident seconding foreign personnel to another legal entity to work in the Republic of Kazakhstan, including to a non-resident operating in the Republic of Kazakhstan through a permanent establishment, shall not create a permanent establishment in relation to those services in the Republic of Kazakhstan if: 1) personnel act solely on behalf of and in the interests of the legal entity to which they have been seconded; the non-resident seconding the foreign personnel is not responsible for the results of the personnels work performed in the Republic of Kazakhstan; and the non-residents income from seconding foreign personnel is determined taking into account the time the personnel need to fulfil their duties on behalf of and in the interests of the legal entity to which they have been seconded, and which does not exceed 10% of the non-residents total costs to provide the personnel in question. A non-resident should file copies of accounting documentation with the recipient of services to confirm total service costs, including foreign personnels income. If the above conditions have not been met, a non-residents services shall create a permanent establishment in the Republic of Kazakhstan. 11. A non-resident performing business activities in the Republic of Kazakhstan that lead to the creation of a permanent establishment should register as a taxpayer with a tax body at accordance with the procedure established by article 562 of this Code. 12. A non-residents activities shall form a permanent establishment in accordance with the provisions of this article regardless of whether they have been registered as a taxpayer with the tax bodies or made a record of their registration with the justice bodies. 13. For the purposes of this Code, the date a non-resident starts activities in the Republic of Kazakhstan shall be recognised as the date: 1) a contract (agreement, treaty) is concluded to: perform work or provide services in the Republic of Kazakhstan or provide authorisation to conclude actions on its behalf in the Republic of Kazakhstan, or
2)
3)
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purchase goods in the Republic of Kazakhstan for realisation purposes, or perform joint activities (participate in a common partnership) in the Republic of Kazakhstan, or purchase work or services to perform activities in the Republic of Kazakhstan; 2) a first employment agreement or other civil or legal agreement are concluded with an individual in the Republic of Kazakhstan, or the date an employee arrives in the Republic of Kazakhstan to execute the conditions of the contract referred to in subpoint 1) of this point. In this respect, the date a non-resident starts activities in the Republic of Kazakhstan may not be earlier than one of the dates indicated in this subpoint. If several of the conditions of this point have been met, the date activities are started in the Republic of Kazakhstan shall be the earliest of the date referred to in this point. 14. If a non-residents operations through a branch or representative office do not lead to the creation of a permanent establishment in accordance with an international treaty to avoid double taxation or point 6 of this article, then the non-residents branch or representative office will be subject to the provisions of this Code provided for the permanent establishments of non-residents, unless otherwise established by chapter 26 of this Code. Article 192. Non-Residents Income from Sources in the Republic of Kazakhstan 1. The following types of income shall be considered as a non-residents income from sources in the Republic of Kazakhstan: 1) income from the realisation of goods in the Republic of Kazakhstan, as well as income from the realisation of goods in and outside of the Republic of Kazakhstan as part of foreign trade activities; income from performing work and providing services in the Republic of Kazakhstan; income received from management, financial (except for insurance and (or) risk reinsurance services), consulting, audit, legal (except for services to represent and protect interests in courts, courts or arbitration, and also notary services) services outside of the Republic of Kazakhstan to: residents; non-residents with a permanent establishment in the Republic of Kazakhstan, if services received are attributable to the activities of the permanent establishment in question; 4) the income of a person registered in a low-tax country as defined in accordance with article 224 of this Code from performing work, providing services and realising goods, irrespective of where they were performed (provided or realised), and also other income established by this article and received by the person in question from: residents; non-residents with a permanent establishment in the Republic of Kazakhstan, if the work, services or goods received are attributable to the activities of the permanent establishment in question; 5) capital gains from the realisation of: property located in the Republic of Kazakhstan; securities issued by residents, as well as participation interest in a resident legal entity or consortium in the Republic of Kazakhstan;
2) 3)
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shares issued by non-residents, as well as participation interest in a non-resident legal entity or consortium, if 50% or more of the value of the non-resident legal entitys shares, participation interest or assets comprises of property in the Republic of Kazakhstan; 6) income from assigning debt claim rights to a resident or non-resident operating in the Republic of Kazakhstan through a permanent establishment - for the taxpayer who assigns the debt claim right; income from assigning debt claim rights from a resident or non-resident operating in the Republic of Kazakhstan through a permanent establishment - for the taxpayer acquiring the debt claim right; forfeits (late payment interest, fines) imposed on a resident or non-resident for failing to fulfil liabilities that arose while the non-resident performed activities in the Republic of Kazakhstan, or for fulfilling them incorrectly, including with respect to contracts (agreements, treaties) to perform work, provide services and (or) under foreign trade contracts to supply goods; income in the form of dividends received from a resident legal entity, and also from mutual investment funds in the Republic of Kazakhstan;
7)
8)
9)
10) income in the form of interest, except for interest on debt securities received from: residents; non-residents with a permanent establishment or property in the Republic of Kazakhstan, if the non-residents debt is attributable to their permanent establishment or property; 11) income in the form of interest on debt securities received from: resident issuers; non-resident issuers with a permanent establishment or property in the Republic of Kazakhstan, if the non-residents debt is attributable to their permanent establishment or property; 12) income in the form of royalties received from a resident or non-resident with a permanent establishment in the Republic of Kazakhstan, if royalty expenses are attributable to the activities of that permanent establishment; 13) income from the rental of property located in the Republic of Kazakhstan; 14) income received from immovable property located in the Republic of Kazakhstan; 15) income in the form of insurance premiums payable under insurance agreements or the reinsurance of risks arising in the Republic of Kazakhstan; 16) income from the provision of international transportation services, as well as transportation services provided in the Republic of Kazakhstan. For the purposes of this section, international transportation services shall be recognised as any transportation of passengers, baggage, goods, including by mail; sea, river or air; motor vehicle or railway, and carried out between points in various countries, one of which is the Republic of Kazakhstan. International transportation services for the purposes of this section shall not include: a conveyance made entirely between points outside of the Republic of Kazakhstan, and between points within the Republic of Kazakhstan; the transportation of products by pipeline; 17) income received from operating pipelines, electric power lines, fibre optic cables located in the Republic of Kazakhstan;
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18) a non-resident individuals income from activities in the Republic of Kazakhstan under an employment agreement (contract) concluded with a resident or non-resident employer; 19) directors fees and (or) other payments received by management (board of directors or other body) in connection with their management duties in relation to a resident legal entity. In this respect, the place where management tasks are actually performed shall not be considered; 20) a non-resident individuals allowances payable due to a resident or non-resident employer residing in the Republic of Kazakhstan; 21) a non-resident individuals income from activities in the Republic of Kazakhstan in the form of material aid, including expenses incurred by an employer (resident or non-resident) on the basis of an employment agreement (contract) or by another entity on the basis of a services agreement, to provide material or social aid to the individual in question. These expenses shall include the individuals food and accommodation expenses, as well as childrens school and education expenses; and expenses to send the individual and family members on vacation; 22) pension payments made by resident pension savings funds; 23) income payable to employees of the arts: theatre, cinema, radio and television artistes, musicians, painters, sportsmen, from activities in the Republic of Kazakhstan, irrespective of how and to whom the payment is made; 24) winnings payable by a resident or non-resident with a permanent establishment in the Republic of Kazakhstan, if the winnings are related to the activities of the permanent establishment; 25) income received from the provision of independent personal (professional) services in the Republic of Kazakhstan; 26) income in the form of property in the Republic of Kazakhstan, which has been received free of charge, including any income from this property; 27) income from derivatives; 28) income received according to a property trust settlement act from a resident trust manager who is not responsible for fulfilling a tax obligation in the Republic of Kazakhstan for a non-resident settler under a property trust management agreement or beneficiary in other trust management cases; 29) other income arising as a result of business activities in the Republic of Kazakhstan. 2. Income tax calculated from a non-residents income in accordance with the provisions of this Code and paid to the budget of the Republic of Kazakhstan by a tax agent at its own expenses shall not be considered the non-residents income from sources in the Republic of Kazakhstan.
Chapter 23. Procedure for taxing the income of non-resident legal entities operating without creating a permanent establishment in the republic of kazakhstan
Article 193. Procedure for calculating and withholding Income Tax at the Source of Payment 1. The income of a non-resident legal entity operating without creating a permanent establishment, as determined in article 192 of this Code, shall be subject to income tax at the source of payment without deductions, at the rates determined in article 194 of this Code. 2. A tax agent shall withhold income tax at the source of payment at the moment it pays income to a non-resident legal entity, irrespective of the form and where the income is paid.
2.
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3.
The obligation and responsibility for calculating, withholding and transferring income tax at the source of payment to the budget shall lie with the following tax agents paying income to a nonresident: 1) 2) individual entrepreneurs; a non-resident legal entity operating in the Republic of Kazakhstan through a branch or representative office, if the branch or representative office do not create a permanent establishment in accordance with an international treaty to avoid double taxation or point 6 of article 191 of this Code; a legal entity, including non-resident operating in the Republic of Kazakhstan through a permanent establishment. In this respect, a non-resident legal entity shall be recognised as a tax agent from the date it starts operations in the Republic of Kazakhstan that have subsequently created a permanent establishment; 4) a resident issuer of the underlying asset of depositary receipts.
3)
4.
The term income payment shall be understood to mean a cash and (or) non-cash transfer; the transfer of securities, participation interest, goods or property; or the performance of work or provision of services; the write-off or credit of a debt claim against a debt due to a non-resident to pay income from sources in the Republic of Kazakhstan. The following shall not be subject to taxation: 1) payments associated with a supply of goods to the Republic of Kazakhstan under foreign trade transactions; income from providing services to open and maintain correspondent accounts in resident banks and make settlements on them, and also settlements made using international payment cards; dividends, if the following conditions have been met simultaneously: shares or participation interest have been held for more than three years; 50% or more of the value of charter (joint stock) capital or shares (participation interest) of a legal entity or consortium paying dividends, on the day of payment consists of the property of a person (persons) that is (are) not a subsoil user(s) in the Republic of Kazakhstan; 4) income from the units of open mutual investment funds if they are redeemed by the funds management company; dividends and interest on securities that on the day dividends and interest are accrued are officially listed on a stock exchange operating in the Republic of Kazakhstan; interest on state equity securities and agency bonds, and capital gains from the realisation of state equity securities and agency bonds; capital gains from the realisation of the shares or participation interest referred to in subpoint 5) of point 1 of article 192 of this Code, except for that referred to in article 197 of this Code; capital gains from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan or a foreign stock exchange, using the open trade method; interest on the non-resident legal entities escrow bank accounts indicated in article 216 of this Code;
5.
2)
3)
5)
6)
7)
8)
9)
10) payments linked to a price adjustment for the quality of realised crude oil transported through an integrated pipeline system to outside the Republic of Kazakhstan;
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11) cumulated (accrued) interest on debt securities paid by resident buyers upon purchase; 12) income from the financial lease of tangible assets under international financial lease agreements; 13) income from performing work or providing services outside the Republic of Kazakhstan except for the income referred to in subpoints 3) and 4) of point 1 of article 192 of this Code. 6. A non-resident legal entitys income shall be taxed at the source of payment irrespective of how a non-resident disposes of its income in favour of third parties and (or) its structural subdivisions in other countries.
Article 194. Income Tax Rates at the Source of Payment The income of a non-resident operating without creating a permanent establishment from sources in the Republic of Kazakhstan shall be taxed at the source of payment at the following rates: 1) the income specified by article 192 of this Code, except for that referred to in subpoints 2)-6) of this article 15%; the income referred to in subpoint 4) of article 192 of this Code 20%; insurance premiums under risk insurance agreements 15%; insurance premiums under risk re-insurance agreements 5%; income from the provision of international transportation services 5%; capital gains, dividends, interest and royalties 15%.
2) 3) 4) 5) 6)
Article 195. Procedure and Deadline for transferring Income Tax at the Source of Payment 1. A tax agent shall be responsible for transferring income tax withheld at the source of payment from a non-resident legal entitys income, to the state budget: 1) on income accrued and paid, except for the case referred to in subpoint 3) of this point within 25 calendar days from the end of the month in which income was paid, at the market rate of exchange on the payment date; on accrued but unpaid income, if it has already been deducted within 10 calendar days from the deadline for filing a corporate income tax declaration, at the market rate of exchange on 31 December of the reporting tax period in which a non-residents income was deducted. This subpoint shall not apply to interest on debt securities and deposits that mature 10 calendar days after the deadline established for filing corporate income tax declarations. In that case the provisions of subpoint 1) of point 1 of this article shall apply; 3) on advance payments made within 25 calendar days from the end of the month in which income was accrued to a non-resident, at the market rate of exchange on the date it was accrued.
2)
2.
If a non-residents accrued income was deducted in the current tax period, and actually paid to the non-resident in subsequent tax periods, then the tax agent shall transfer income tax at the source of payment to the budget within the deadline established by subpoint 2) of point 1 of this article. A tax agent shall transfer income tax at the source of payment from a non-residents income according to its location. A non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall transfer income tax from a non-residents income at the source of payment to the state budget according to the location of the permanent establishment.
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Article 196. Filing of Tax Reporting Tax agents should file statements of corporate income tax withheld at the source of payment from nonresidents income with a tax body at their location within the following deadlines: 1) on or before the 15th of the second month following the reporting quarter in which an obligation arose to withhold income tax at the source of payment; on or before 15 February of the year following the reporting tax period in which a non-residents accrued but unpaid income was deducted. In this respect, the date a non-residents accrued but unpaid income was deducted shall be 31 December of the reporting tax period. Article 197. Calculation, Withholding and Transfer of Tax from Capital Gains after the Realisation of Immovable Property located in the Republic of Kazakhstan, and Securities, Participation Interest related to Subsoil Use in the Republic of Kazakhstan 1. This article shall apply to non-residents capital gains from the realisation of: 1) 2) immovable property located in the Republic of Kazakhstan; shares issued by a resident, and participation interest in a resident legal entity or consortium with a subsoil use right in the Republic of Kazakhstan; shares issued by a resident, and participation interest in a resident legal entity or consortium if 50% or more of the value of charter (joint stock) capital or shares (participation interest) of the resident legal entity or consortium on the realisation date consists of the property of a person (persons) that is (are) a subsoil user(s); shares issued by a non-resident and participation interest in a non-resident legal entity or consortium if 50% or more of the value of charter (joint stock) capital or shares (participation interest) of the non-resident legal entity or consortium on the realisation date consists of the property of a person (persons) that is (are) a subsoil user(s). In this respect, capital gains shall be determined in accordance with article 87 of this Code. For the purposes of this Code, the Government of the Republic of Kazakhstan shall specify the procedure for determining subsoil users share of property in the charter (joint stock) capital or shares (participation interest) of a legal entity or consortium at the share (participation interest) realisation date. 2. A non-residents income referred to in point 1 of this article, except for the income referred to in subpoint 8) of point 5 of article 193 of this Code, shall be subject to income tax at the source of payment at the rate established by article 194 of this Code. When it receives information from the authorised state body for the regulation and control of power engineering and mineral resources on a transaction to buy or sell securities or participation interest associated with the property of a resident legal entity or consortium with subsoil use rights in the Republic of Kazakhstan, a tax body shall be obliged to notify the resident or consortium of the purchaser of the securities or participation interest, and also of the purchase price of the securities or participation interest. A person realising shares, participation interest or immovable property should provide a purchasertax agent with a copy of a document confirming the cost (contribution) value. The realisation value shall be subject to income tax at the source of payment if a tax agent does not receive a document confirming the cost (contribution) value. 5. Entities paying income, including non-residents, irrespective of whether they have a permanent establishment in the Republic of Kazakhstan shall be responsible for calculating, withholding and
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transferring income tax at the source of payment to the budget. This entity shall be recognised as a tax agent. 6. A non-resident tax agent should register as a taxpayer with a tax body at accordance with the procedure established by article 562 of this Code. A tax agent shall withhold income tax at the source of payment at the moment income is paid to a non-resident, irrespective of how and where the income is paid. A tax agent shall transfer corporate income tax within the deadline established by article 195 of this Code, and also file a statement of corporate income tax withheld at the source of payment from non-residents income within the deadline established by article 196 of this Code, to the tax body where the tax agent has created a record of registration in the Republic of Kazakhstan. A resident legal entity or consortium with the subsoil use rights in the Republic of Kazakhstan referred to in subpoints 2)-4) of point 1 of this article may also pay tax at the expense of the tax agents funds. In this respect, a resident legal entity or consortium shall transfer tax within the deadline established by article 195 of this Code and file a statement of corporate income tax withheld at the source of payment from non-residents income within the deadline established by article 196 of this Code, to the tax body at the resident legal entity or consortiums location in the Republic of Kazakhstan. Tax transferred by a tax agent to a resident legal entity or consortium referred to in subpoints 2)-4) of point 1 of this article and with subsoil user rights in the Republic of Kazakhstan shall not be recognised as the resident legal entity or consortiums income. 10. If a tax agent fails to apply points 8 and 9 of this article, a resident legal entity or consortium with subsoil user rights in the Republic of Kazakhstan shall be entitled to pay income tax, using its own funds, on a non-residents capital gains in accordance with the procedure and within the deadline established in point 9 of this article. In this respect, resident legal entities or consortiums with subsoil user rights in the Republic of Kazakhstan may not deduct tax paid for a non-resident for taxable income of. 11. If a tax agent, resident legal entity or consortium referred to in subpoints 2)-4) of point 1 of this article, and which have subsoil user rights in the Republic of Kazakhstan, fail to apply the provisions of points 7-10 of this article, the tax debt shall be recovered from the resident legal entity or consortium with subsoil user rights in the Republic of Kazakhstan. 12. If a tax agent fails to transfer income tax from a non-residents capital gains from the realisation of immovable property located in the Republic of Kazakhstan, or does not do so in full, the tax debt shall be recovered against the realisation of the immovable property in accordance with the procedure established by this Code.
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Chapter 24. Procedure for taxing the income of non-resident legal entities operating in the republic of kazakhstan through a permanent establishment
Article 198. Definition of Taxable Income 1. The procedure for determining taxable income, calculating and paying the corporate income tax of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall be established by the provisions of this article, and articles 83149 of this Code. A non-resident legal entitys aggregate annual income from operations in the Republic of Kazakhstan through a permanent establishment shall include the following types of income attributable to the permanent establishments activities, and generated (to be generated) from the date activities are started in the Republic of Kazakhstan: 1) income stipulated by point 1 of article 192 of this Code from sources in the Republic of Kazakhstan; 137
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2) 3)
any income listed in point 1 of article 85 of this Code that has not been included in subpoint 1) of this point; income received by the permanent establishment of a non-resident legal entity from sources outside of the Republic of Kazakhstan, including through employees or other hired personnel; a non-resident legal entitys income, including its structural subdivisions income received in other countries from activities in the Republic of Kazakhstan that are the same or similar to those performed through the non-resident legal entitys permanent establishment in the Republic of Kazakhstan.
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If a non-resident operates in both the Republic of Kazakhstan and abroad under a single project or related projects together with its permanent establishment in the Republic of Kazakhstan, then the income of the permanent establishment would be income it could have received had it been a separate and independent legal entity performing the same activities under the same or similar conditions, and acted separately from the non-resident legal entity of which it is the permanent establishment. The term related projects has been defined by point 2 of article 191 of this Code. The income of a permanent establishment for the purposes of this point shall be determined in accordance with transfer pricing legislation of the Republic of Kazakhstan.
4.
If goods produced in the Republic of Kazakhstan by a non-resident legal entitys permanent establishment are realised by a different business division outside of the Republic of Kazakhstan, then the permanent establishments income shall be considered as the income it could have received if it had been a separate and independent legal entity engaged in the same or identical activities under the same or similar conditions, and had acted separately from the non-resident legal entity of which it is a permanent establishment. For the purposes of this paragraph, the income of a permanent establishment shall be determined in accordance with transfer pricing legislation of the Republic of Kazakhstan.
5.
Expenses directly associated with generating income from activities performed in the Republic of Kazakhstan through a permanent establishment shall be deductible, regardless of whether the expenses were incurred in the Republic of Kazakhstan or abroad, except for expenses that are non-deductible in accordance with this Code. A non-resident legal entity shall not be entitled to deduct, with respect to their permanent establishments, any amounts attributable to: 1) royalties, fees, charges or other payments for the use or the provision of the right to use the property or the intellectual property of the non-resident legal entity; income for services provided by a non-resident legal entity to its permanent establishment; interest on loans provided by a non-resident legal entity to its permanent establishment; expenses not connected with the generation of income from a non-resident legal entitys activities in the Republic of Kazakhstan carried out through a permanent establishment; expenses not supported by documentation; a non-resident legal entitys management or general administrative expenses as determined by point 2 of article 208 of this Code, which have not been incurred in the Republic of Kazakhstan.
6.
2) 3) 4)
5) 6)
Article 199. Procedure for taxing Net Income 1. A non-resident legal entitys net income from activities in the Republic of Kazakhstan performed through a permanent establishment shall be subject to corporate income tax on net income of 15%. Net income shall be recognised as taxable income minus income and expenses stipulated by article 133 of this Code, and also losses carried forward in accordance with article 137 of this Code, minus corporate income tax calculated.
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Corporate income tax calculated on net income shall be recorded in a corporate income tax declaration. A non-resident legal entity shall be required to pay corporate income tax on net income from activities performed through a permanent establishment within 10 calendar days from the deadline established for filing a corporate income tax declaration.
3.
Article 200. Procedure for taxing Income in Specific Cases 1. If a non-resident legal entity has more than one permanent establishment in the Republic of Kazakhstan, the non-resident shall be entitled to pay corporate income tax jointly for a non-resident legal entitys group of permanent establishments through one of the permanent establishments. In this respect, a non-resident legal entity should have sent written notification on or before 31 December of the year preceding the reporting tax period to: 1) the authorised body stating which permanent establishment will calculate and pay corporate income tax; the tax bodies at the location of its permanent establishments stating that a particular permanent establishment will pay tax to the budget for all of its permanent establishments. Corporate income tax payable to the budget in this case shall be calculated from the total taxable income of a non-resident legal entitys permanent establishments in the Republic of Kazakhstan. In this respect, the relevant permanent establishment should file a total corporate income tax declaration in its place of residence for a non-resident legal entitys entire group of permanent establishments. 2. Notwithstanding the provisions of article 198 of this Code, a tax agent paying the income referred to in subpoint 4) of point 2 and point 3 of article 198 of this Code should calculate, withhold and transfer income tax from the income in question without deductions, at the rate established by subpoint 1) of article 194 of this Code, and according to its location. The provisions of this point shall not apply if the provisions of part 2 of point 3 of this article have been observed. In this respect, income tax at the source of payment that has been withheld by a tax agent shall be offset against the tax liabilities of the permanent establishment of the non-resident legal entity in accordance with the procedure established by point 4 of this article. 3. In the absence of a contract concluded with a branch or representative office of a non-resident legal entity, non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office, and (or) a tax invoice issued by the branch or representative office, permanent establishment of the non-resident legal entity, the income of the non-resident legal entity shall be subject to income tax at the source of payment at the rate established by article 194 of this Code, without deductions, irrespective of the provisions of article 198 of this Code. Income tax at the source of payment withheld by a tax agent shall in that case be offset against the tax liabilities of the branch, representative office or permanent establishment of the non-resident legal entity in accordance with the procedure established by point 4 of this article. If a contract has been concluded with a branch, representative office of a non-resident legal entity, non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch, representative office and (or) an invoice issued by the branch, representative office or permanent establishment of the non-resident legal entity, the provisions of this point shall not apply and the income of the non-resident legal entity shall be subject to income tax in accordance with the provisions of article 198 of this Code. In this respect, non-resident legal entities should provide tax agents with a notarised copy of a document with the identification number of the branch, representative office or permanent establishment. 4. Corporate income tax withheld by a tax agent in accordance with the provisions of this article shall be recalculated by a non-resident legal entity operating through a permanent establishment, 139
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retrospectively. Recalculation shall involve calculating corporate income tax in accordance with articles 198 and 199 of this Code and filing a corporate income tax declaration with the tax body at location its permanent establishment that records the income referred to in points 2 and 3 of this article. Corporate income tax calculated as the difference between income tax withheld and recalculated income tax shall be offset against the tax liabilities of the permanent establishment of a nonresident legal entity in accordance with the procedure established by this Code.
Chapter 25. Procedure for taxing the income of non-resident individuals

Article 201. Procedure for calculating, withholding and transferring Income Tax at the Source of Payment 1. A non-resident individuals income, as determined by point 1 of article 192 of this Code, shall be subject to income tax at the source of payment at the rates referred to in article 194 of this Code, without deductions. In this respect, a tax agent shall be responsible for calculating, withholding and transferring income tax from the income of non-resident individuals at the source of payment in accordance with the procedure and within the deadline established by this article and article 195 of this Code. 2. Notwithstanding the provisions of this article, income tax at the source of payment to the budget from the income of the non-resident individuals referred to in point 1 of article 197 of this Code, except for the income referred to in subpoints 9) and 10) of point 8 of this article, shall be calculated, withheld and transferred in accordance with article 197 of this Code. A tax agent shall calculate, withhold and transfer income tax from the income of non-resident individuals at the source of payment as determined by subpoints 18)-22) of point 1 of article 192 of this Code, including the income determined by articles 163-165 of this Code without tax deductions, in accordance with the procedure and within the deadline established by articles 161 and 167 of this Code. A tax agent shall withhold income tax at the source of payment at the moment income is paid to a non-resident individual, except for the case referred to in point 5 of this article, irrespective of the type and place where income is paid. A tax agent shall withhold individual income tax at the source of payment from the income of foreign personnel seconded for work by a non-resident whose activities do not create a permanent establishment in accordance with the provisions of point 10 of article 191 of this Code. The withholding shall be made at the moment income is paid to the non-resident legal entity providing the personnel. In this respect, a tax agent shall calculate and transfer individual income tax at the source of payment from the income of such foreign personnel every month, within the deadline established by article 161 of this Code. The obligation and responsibility to calculate, withhold and transfer income tax at the source of payment to the budget shall lie with the following tax agents paying income to a non-resident: 1) 2) individual entrepreneurs; a non-resident legal entity operating in the Republic of Kazakhstan through a branch or representative office, if the branch or representative office does not create a permanent establishment in accordance with an international treaty to avoid double taxation or point 6 of article 191 of this Code; a legal entity, including non-resident, operating in the Republic of Kazakhstan through a permanent establishment.
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In this respect, a non-resident legal entity shall be recognised as a tax agent from the date it starts activities in the Republic of Kazakhstan that subsequently lead to the creation of a permanent establishment; 4) a legal entity, including a non-resident, operating in the Republic of Kazakhstan through a permanent establishment that has been provided with foreign personnel by a non-resident whose activities do not create a permanent establishment in accordance with the provisions of point 10 of article 191 of this Code; a resident issuer of the underlying asset of depositary receipts.
5) 7.
A tax agent shall transfer income tax from the income of a non-resident individual at the source of payment to its local budget. A non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment shall transfer income tax from the non-resident individuals income at the source of payment to the permanent establishments local budget.
8.
The following shall not be subject to taxation: 1) 2) interest on bank deposits; payments related to the supply of goods to the Republic of Kazakhstan under foreign trade operations; cumulative (accrued) interest on debt securities following their purchase, which is paid by resident purchasers; dividends, provided the following conditions have been met: shares or participation interest has been held for more than three years; 50% or more of the value of charter (joint stock) capital or shares (participation interest) of a legal entity or consortium paying dividends, on the day of payment consists of the property of a person (persons) that is (are) not a subsoil user(s) in the Republic of Kazakhstan; 5) income from the units of open mutual investment funds if they are bought back by the fund in questions management company; dividends and interest on securities that on the day dividends and interest are accrued are in the official listing of a stock exchange operating in the Republic of Kazakhstan; interest on state equity securities and agency bonds, and capital gains from the realisation of state equity securities and agency bonds; capital gains from the realisation of the shares or participation interest referred to in subpoint 5) of point 1 of article 192 of this Code, except for that referred to in article 197 of this Code; capital gains from realising securities officially listed on the realisation date on a stock exchange operating in the Republic of Kazakhstan or a foreign stock exchange, using the open trade method;
3)
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10) capital gains from the realisation of residential premises, dachas, garages, small holdings owned for at least one year from the moment ownership rights were registered; 11) income from work performed and services provided outside of the Republic of Kazakhstan, except for the income referred to in subpoints 3) and 4) of point 1 of article 192 of this Code.
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Article 202. Procedure for taxing the Income of the Foreign Employees of a Non-Resident Legal Entity without a Permanent Establishment in the Republic of Kazakhstan 1. The provisions of this article shall apply to the taxation of non-resident individuals income specified in subpoints 18), 20), 21) of point 1 of article 192 of this Code, including the income referred to in articles 163-165 of this Code, unless otherwise established by point 5 of article 201 of this Code. In this respect, the provisions of this article shall apply provided the following conditions have been met simultaneously: 1) the non-resident individual is an employee of a non-resident legal entity without a permanent establishment in the Republic of Kazakhstan; the non-resident individual has been recognised for the current tax period as permanently residing in the Republic of Kazakhstan in accordance with point 2 of article 189 of this Code. If a non-resident individual is not recognised for the current tax period as permanently residing in the Republic of Kazakhstan, then that individuals income referred to in subpoints 18), 20) and 21) of point 1 of article 192 of this Code, including the income referred to in articles 163-165 of this Code, shall not be taxable. 2. The obligation and responsibility to calculate, withhold and transfer individual income tax at the source of payment to the budget from the income of the non-resident individuals referred to in subpoint 1) of point 1 of this article shall lie with the legal entity (including a non-resident operating through a permanent establishment) in whose favour work has been performed or services have been provided by a non-resident legal entity. This entity shall be recognised as a tax agent. Individual income tax shall be calculated on a non-resident individuals income set forth in an employment agreement (contract) between the non-resident individual and a non-resident legal entity, exclusive of tax deductions and by applying the rate established by article 158 of this Code. In this respect, the non-resident legal entity should provide notarised copies of employment agreements (contracts) concluded with non-resident individuals on business trips in the Republic of Kazakhstan to the tax agent. Tax agents shall calculate and transfer individual income tax from the income of non-resident th individuals to their local budget on or before the 25 of each month. Tax agents shall withhold individual income tax at the source of payment at the moment income is paid to a non-resident legal entity, irrespective of the type and place income was paid.
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Article 203. Filing of a Declaration on Individual Income Tax and Social Tax from the Income of Foreign nationals and Stateless individuals Tax agents shall file a declaration on individual income tax and social tax from the income of foreign nationals and stateless individuals with the tax body at their location within the deadline established by article 196 of this Code. Article 204. Procedure for taxing the Income of a Non-Resident Individual in Specific Cases 1. The provisions of this article shall cover a non-resident individuals income from sources in the Republic of Kazakhstan from persons that are not tax agents in accordance with the provisions of this Code. The individual income tax from non-resident individuals income referred to in point 1 of this article shall be calculated by applying the rate established by article 194 of this Code to an amount of income, without tax deductions. Non-resident individuals shall pay individual income tax themselves no later than 10 calendar days from the deadline set for filing an individual income tax declaration for the tax period.
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4.
Non-resident individuals shall file an individual income tax declaration at the end of the tax period with the tax body at their place of stay (residence) within the deadline established by article 205 of this Code.
Article 205. Filing of an Individual Income Tax Declaration A non-resident individual receiving income from sources in the Republic of Kazakhstan that is not subject to individual income tax at the source of payment in accordance with this Code shall file an individual income tax declaration with the tax body at the taxpayers place of stay (residence) on or before 31 March of the year following the reporting tax period.
Chapter 26. Special provisions under international treaties

Article 206. Conditions for the Application of an International Treaty 1. The provisions of an international treaty to avoid double taxation and prevent the evasion of the taxation of income and property (capital), to which the Republic of Kazakhstan is a party (hereafter, for the purposes of this chapter and chapter 27 of this Code - international treaty), shall apply to those persons that are residents of one or both contracting countries. The provisions of point 1 of this article shall not apply to a resident of a country with which an international treaty has been concluded, if the resident in question applies the provisions of the international treaty in the interests of another entity that is not a resident of a country with which an international treaty has been concluded.
2.
Article 207. Procedure for applying International Treaties The provisions of international treaties shall be applied in accordance with the procedure established by this Code and the relevant international treaty. Article 208. Methods for deducting a Non-Resident Legal Entitys Executive and General Administrative Expenses for the Purpose of taxing Income from Sources in the Republic of Kazakhstan 1. If the provisions of an international treaty allow executive and general administrative expenses to be deducted when determining a non-resident legal entitys taxable income from activities in the Republic of Kazakhstan through a permanent establishment, and if these expenses are incurred inside the Republic of Kazakhstan and outside its borders in the generation of the income in question, then one of the following two methods shall be used to determine the expenses: 1) 2) the proportional allocation of expenses method; the direct deduction of expenses method. In this respect, the above expenses may be deducted if a non-resident legal entity has a document confirming residency that meets the requirements of point 4 of article 219 of this Code. 2. Executive and general administrative expenses shall be those expenses related to managing an organisation, paying employment compensation to management personnel not connected to the production process. A non-resident legal entity shall, at its discretion, select only one of the two methods for deducting executive and general administrative expenses. The method chosen should not be changed during the course of the reporting tax period. The method chosen for a permanent establishment to deduct executive and general administrative expenses (including the procedure for calculating the calculation index used in the proportional allocation of expenses method) shall be applied on an annual basis and may only be amended with 143
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the consent of the tax body that is the next highest in relation to the tax body at the permanent establishments location (except the authorised body), before the reporting tax period is due to start. 5. A non-resident legal entity shall not be entitled to apply two methods for deducting executive and general administrative expenses simultaneously during the reporting tax period. For the purpose of calculating the above deductible expenses, a non-resident should complete the relevant appendix to the corporate income tax declaration and file it with the tax body at the location of its permanent establishment. A permanent establishment in the Republic of Kazakhstan may deduct executive or general administrative expenses only if it has the following supporting documents as well as a translation into Kazakh or Russian: 1) a notarised copy of a document confirming residency that meets the requirements of point 4 of article 219 of this Code; a copy of the financial reporting of the taxpayers permanent establishment in the Republic of Kazakhstan; a copy of a non-resident legal entitys financial reporting; a copy of an audit report on the audit of the financial statements of a non-resident legal entity (if the financial statements of the person in question have been audited). In this respect, the financial statements referred to in subpoints 2) and 3) of this point, depending on the method chosen for determining the calculation index, should disclose the following data: 1) 2) 3) 4) total aggregate annual income; employment compensation expenses as a whole; the initial (current) and book value of tangible assets as a whole; total expenses broken down into items, including a breakdown of total executive and general administrative expenses.
6.
7.
2)
3) 4)
8.
A list of a non-resident legal entitys executive and general administrative expenses deductible to a permanent establishment in the Republic of Kazakhstan, and also the method for allocating them between the non-resident legal entity and its permanent establishment(s) shall be approved in the non-resident legal entitys tax accounting policy. A non-resident legal entity should file a notarised copy of a document confirming residency to the relevant tax body within the deadline established for filing a corporate income tax declaration. When applying the proportional allocation method a statement of expenses deductible to a permanent establishment in the Republic of Kazakhstan shall be compiled in free form. A non-resident shall file the documents referred to in point 7 of this article, except for the document referred to in subpoint 1) of part 1 of point 7 of this article, with a tax body when required to do so.
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10. If financial statements have been compiled in a foreign language, the taxpayer should attach a translation into Kazakh or Russian that has been notarised in accordance with the procedure established by legislation of the Republic of Kazakhstan. 11. If executive and general administrative expenses subject to proportional allocation have not been recorded in financial statements, and also if the requirements established by this article have not been met, then these expenses shall not be deductible.
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Article 209. Proportional Allocation of Expenses Method 1. Under the proportional allocation method, the executive and general administrative expenses referred to in point 2 of article 208 of this Code that are deductible for a permanent establishment, shall be determined as the product of the given expenses and a calculation index. The calculation index shall be calculated by one of the following two methods, at the discretion of a non-resident legal entity: 1) the correlation between a non-resident legal entitys aggregate annual income over a given reporting tax period from activities in the Republic of Kazakhstan through a permanent establishment, and the non-resident legal entitys total aggregate annual income as a whole for the same tax period; the arithmetic mean value (MV) using three indices: the correlation between a non-resident legal entitys aggregate annual income over a given reporting tax period from activities in the Republic of Kazakhstan through a permanent establishment, and the non-resident legal entitys total aggregate annual income as a whole for the same tax period (I); the correlation between the initial (current) value of tangible assets recorded in the financial statements of a permanent establishment in the Republic of Kazakhstan at the end of the tax period, and the total initial (current) value of the non-resident legal entitys tangible assets for the same tax period (TA); the correlation between employment compensation expenses for personnel employed by a permanent establishment in the Republic of Kazakhstan at the end of the tax period, and the non-resident legal entitys total payroll expenses for the same tax period (PR). The arithmetic mean value shall be determined using the formula: MV = (I + TA + PR)/3. Article 210. Features of the Calculation of the Calculation Index when applying the Proportional Allocation of Expenses Method in Specific Cases 1. If the duration of tax periods in the Republic of Kazakhstan and in a taxpayers country of residence do not match, or if the same is true for start and end dates of tax periods in the Republic of Kazakhstan and a taxpayers country of residence while their duration are equal, the taxpayer should adjust the data in a non-resident legal entitys financial statements in its country of residence, which were used to calculate executive and general administrative expenses that are deductible for a permanent establishment. A correction index (CI) shall be applied to adjust data in a taxpayers financial statements in its country of residence, and which should ensure that the taxpayers tax period in its country of residence matches that in the Republic of Kazakhstan. 2. The correction index (CI) shall be determined as the correlation between the number of months in the tax period in a taxpayers country of residence that are incorporated in the tax period in the Republic of Kazakhstan, and the number of months of the taxpayers tax period in its country of residence. When the reporting tax period in the Republic of Kazakhstan incorporates two entire or partial tax periods in a taxpayers country of residence, the index (K1, K2) shall be applied. 3. Data in a taxpayers financial statements in its country of residence shall be adjusted as follows: K1 x FS(CR)1 + K2 x FS(CR)2, where K1 = TP(CR)1/ TP(CR)3; K2 = TP(CR)2/ TP(CR)3,
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where: TP(CR)1 is the number of months in a single tax period in a taxpayers country of residence that fall within a tax period in the Republic of Kazakhstan; TP(CR)2 is the number of months in a different tax period in a taxpayers country of residence that fall within a tax period in the Republic of Kazakhstan; TP(CR)3 is the total number of months in a tax period in a taxpayers country of residence; FS(CR)1 a taxpayers financial statements in its country of residence for a single tax period in the taxpayers country of residence that falls within the tax period in the Republic of Kazakhstan; FS(CR)2 a taxpayers financial statements in its country of residence for a different tax period in the taxpayers country of residence that falls within the tax period in the Republic of Kazakhstan. Article 211. Direct Deduction of Expenses Method 1. The direct method for deducting a non-residents executive and general administrative expenses shall be used when a non-resident legal entity accounts for the income and costs (including executive and general administrative expenses) of its head office and those of its permanent establishments in the Republic of Kazakhstan and abroad separately. Executive or general administrative expenses shall be deducted by a permanent establishment in the Republic of Kazakhstan if they are determinable and have been directly incurred in the generation of income from activities in the Republic of Kazakhstan through a permanent establishment. These expenses may only be deducted by a permanent establishment where supporting documents are available and they have been translated into Kazakh or Russian. The following shall serve as supporting documents: 1) primary accounting documents confirming expenses incurred by a non-resident legal entity in the Republic of Kazakhstan for the purposes of generating income from activities through a permanent establishment; copies of primary accounting documents confirming expenses incurred by a non-resident legal entity outside the Republic of Kazakhstan for the purposes of receiving income from activities in the Republic of Kazakhstan through a permanent establishment; copies of the documents referred to in point 7 of article 208 of this Code; tax registers to record expenses incurred by a non-resident legal entity outside of the Republic of Kazakhstan, and which have been compiled based on primary accounting documents confirming the expenses in question. The form of a register of expenses incurred by a non-resident legal entity outside of the Republic of Kazakhstan, and the procedure for compiling it shall be approved in the nonresident legal entitys accounting policy. Article 212. Procedure for applying an International Treaty in Relation to the Complete or Partial Exemption of a Non-Residents Income received from Sources in the Republic of Kazakhstan from Taxation 1. A tax agent shall be entitled to apply a tax exemption or reduce a rate of tax stipulated by the international treaty itself at the moment income is paid to a non-resident or deducted, if the nonresident is the final recipient of the income and is a resident of a country with which an international treaty has been concluded.
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3) 4)
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The provisions of an international treaty stipulating a tax exemption or a reduced rate of tax shall apply if a non-resident has provided the tax agent with a document confirming residency that meets the requirements of point 4 of article 219 of this Code, but by no later than the day income is paid. 2. The term final (actual) recipient (owner) of income for the purpose of reducing income tax rates in accordance with the provisions of an international treaty on a non-residents dividends, interest and royalties received from sources in the Republic of Kazakhstan should be regarded as a person entitled to determine how income is to be used and disposed of. In this respect, the final (actual) recipient (owner) of income may not be a legal entity or individual who is an agent, nominal holder or entity without the right to own income or who is an intermediary in relation to the income in question. 3. The procedure for applying the provisions of an international treaty established by this article shall cover the taxation of non-residents following types of income received from sources in the Republic of Kazakhstan: 1) dividends, including those received on shares that are the underlying asset of depositary receipts; the income referred to in subpoints 18), 20) and 21) of point 1 of article 192 of this Code and generated by the non-resident individuals referred to in articles 201-202 of this Code, provided the following conditions have been met: the non-resident individual is in the Republic of Kazakhstan for a period or periods that do not exceed 183 days in total in any consecutive 12-month period beginning or ending in the reporting tax year; income is paid by an employer who is not a resident of the Republic of Kazakhstan, or on behalf of the employer; an employers permanent establishment in the Republic of Kazakhstan is not responsible for paying a non-resident individuals income; 3) income from services provided (work performed) in the Republic of Kazakhstan, provided that the services (work) are provided (performed) by a non-resident in the Republic of Kazakhstan within the period before a permanent establishment is created in the Republic of Kazakhstan in accordance with an international treaty. For the purposes of this subpoint, a non-resident shall provide a tax agent with notarised copes of foundation documents or an excerpt from a trade register indicating the founders (participants) and majority shareholders of the non-resident legal entity; 4) other income receivable by a non-resident legal entity or individual from sources in the Republic of Kazakhstan established by point 1 of article 192 of this Code, and which are not related to activities performed in the Republic of Kazakhstan through a permanent establishment, except for the income referred to in article 197 of this Code.
2)
4.
To apply a reduced rate of tax stipulated by a particular international treaty to dividends on shares that are the underlying asset of depositary receipts, a tax agent should have the following documents available at the moment payment is made: 1) a list of depositary receipt holders from the joint stock company Central Securities Depositary, which should contain: the surnames, name, patronymic (if applicable) of individuals or the names of legal entities that are the holders of depositary receipts whose underlying asset are shares issued by a resident of the Republic of Kazakhstan; information on the quantity and type of depositary receipts;
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the name and details of documents confirming the identity of individuals, or the number and date of the state registration of legal entities. The above list shall be compiled by the joint stock company Central Securities Depositary as at the date it receives a registrars request to do so, unless a different date is indicated in the request; 2) a document from a non-resident confirming the residency of a non-resident final (actual) recipient (owner) of income on depositary receipts. Confirmation should meet the requirements of point 4 of article 219 of this Code.
5.
A tax agent should use tax reporting filed with the tax bodies to indicate accrued (paid) income; income withheld and income exempt from withholding in accordance with the provisions of international treaties; income tax rates and the name of the international treaties in question. In this respect, a tax agent, when filing tax reporting, should also file a notarised copy of a document confirming residency, which meets the requirements of point 4 of article 291 of this Code with the tax body at its location confirming the non-resident taxpayers residency. In this respect, a tax agent shall not be required to refile a certified copy of a document confirming residency of a taxpayer with a tax body if a copy had been filed earlier, except for when the document in question is filed with data that has been amended according to subpoint 4) of point 1 of article 219 of this Code.
6.
If a tax agent is guilty of an inappropriate application of the provisions of an international treaty which has led to a failure to pay or an incomplete payment of tax to the state budget, the tax agent shall be made accountable in accordance with laws of the Republic of Kazakhstan.
Article 213. Procedure for applying an International Treaty in Relation exempting from Taxation a Non-Residents Income from providing International Transportation Services through a Permanent Establishment 1. A non-resident shall be entitled to apply the provisions of an international treaty relating to an exemption of income from international transportation services from taxation where one of the parties is the Republic of Kazakhstan, if it is the final recipient of income and a resident of a country with which an international treaty has been concluded. The provisions of an international treaty stipulating a tax exemption shall apply if a non-resident possesses a document confirming residency that meets the requirements of point 4 of article 219 of this Code at the date a corporate income tax declaration is filed. A taxpayer shall file a notarised copy of a document confirming residency with the tax body at the location of its permanent establishment when filing a corporate income tax declaration. 2. A non-resident should indicate the amount of tax, the tax rate and name of the international treaty that was the source of the tax rate in a corporate income tax declaration. In this respect, a non-resident legal entity should keep a separate record of income from international transportation services (not taxable according to an international treaty) and from transportation services in the Republic of Kazakhstan (taxable). Expenses incurred in generating income from international transportation services shall be determined by the direct or indirect method. In this respect, a taxpayer shall be entitled, at its discretion, to apply one of the above methods for calculating expenses. The method chosen shall be used for a year and may only be changed with the consent of the next highest tax body to the tax body at the taxpayers location (except for the authorised body), until the start of the reporting tax period. 5. The direct method shall envisage determining expenses based on the separate accounting of expenses incurred from international transportation services, and expenses from transportation services in the Republic of Kazakhstan. 148
3.
4.
6.
The indirect method shall envisage determining the expenses in question as the product of a percentage and total expenses incurred by a non-resident to generate income from sources in the Republic of Kazakhstan, for the reporting tax period. The percentage shall be determined as the ratio between income from international transportation services and income from sources in the Republic of Kazakhstan. A taxpayer shall be held accountable in accordance with laws of the Republic of Kazakhstan for an unlawful application of the provisions of an international treaty that has led to a non-payment or incomplete payment of tax to the budget.
7.
Article 214. Procedure for applying an International Treaty in Relation to a Partial Exemption from Taxation of Net Income from a Non-Residents Activities performed in the Republic of Kazakhstan through a Permanent Establishment 1. A non-resident shall be entitled to apply a reduced rate of tax on net income from activities in the Republic of Kazakhstan through a permanent establishment as stipulated by the relevant international treaty if it is a resident of a country with which an international treaty has been concluded, and if the international treaty envisages a procedure for taxing the non-residents net income that differs from the procedure established by article 199 of this Code. The reduced rate of tax shall apply if a non-resident possesses a document confirming residency that meets the requirements of point 4 of article 219 of this Code at the date a corporate income tax declaration is filed. A non-resident shall file a notarised copy of a document confirming residency with the tax body at its permanent establishments location when filing a corporate income tax declaration. 2. A non-resident should indicate the amount of tax on net income, the tax rate and name of the international treaty that was the source of the tax rate in a corporate income tax declaration. A non-resident taxpayer shall be accountable in accordance with laws of the Republic of Kazakhstan where the provisions of an international treaty are incorrectly applied, leading to a nonpayment or incomplete payment of tax to the budget.
3.
Article 215. Procedure for applying an International Treaty in Relation to exempting from Taxation a Non-Resident Individuals Income received from Entities that are not Tax Agents 1. A non-resident individual shall be entitled to apply the provisions of an international treaty that exempt the income referred to in article 204 of this Code from taxation if the non-resident is the final recipient of the income and is a resident of a country with which the international treaty has been concluded. An international treaty shall be applied in relation to a tax exemption if a non-resident possesses a document confirming residency that meets the requirements of point 4 of article 219 of this Code at the date an individual income tax declaration is filed. A non-resident taxpayer shall file a notarised copy of a document confirming residency with the local tax body at its place of stay (residence) when filing an individual income tax declaration. 2. A non-resident individual shall indicate the amount of income accrued (received) and taxes paid (exempt from payment) in accordance with the provisions of an international treaty, and the name of the international treaty in an individual income tax treaty. In the absence of a document confirming residency a non-resident individual should pay income tax to the budget when filing an individual income tax declaration in accordance with the procedure and within the deadline established by article 204 of this Code. In this respect, if income tax is paid to the budget from income received from sources in the Republic of Kazakhstan by a non-resident individual entitled to apply the provisions of a particular
3.
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international treaty, the non-resident shall be entitled to a refund from the budget of income tax paid in accordance with the procedure established by article 217 of this Code. Article 216. Procedure for transferring Income Tax from Non-Residents Income to the Budget or to Escrow Accounts 1. If a tax agent fails to apply the procedure established by article 212 of this Code, the tax agent should withhold income tax at the source of payment at the moment income is paid to the nonresident at the rate set by point 1 of article 158 or article 194 of this Code, and transfer the income tax withheld within the deadline established by articles 161 and 195 of this Code to the budget or to an escrow account opened in the name of the non-resident. The procedure for transferring income tax to an escrow account shall apply solely to income tax withheld from a non-residents income from work performed or services provided in the Republic of Kazakhstan that do not lead to the formation of a permanent establishment. 2. A non-resident receiving income, a tax agent and resident bank designated as a tax agent shall conclude an agreement to open an escrow account for the non-resident using the form approved by the parties to the agreement before the deadline for the tax agent to transfer income tax from the non-residents income. Escrow accounts shall be opened in the national or foreign currency. If an escrow account has been opened in a foreign currency, income tax and bank interest shall be paid to the budget in the national currency at the market currency exchange rate at the moment tax is transferred to the budget. A bank in which a conditional deposit has been placed should file a report with the tax body at the th tax agents location on or before the 15 of the second month following the reporting quarter on cash flow during the reporting quarter. The report should take the form established by the authorised body, and should be filed for quarters in which cash flows were recorded in an escrow account. A report shall be amended, supplemented and filed in those cases and in accordance with the procedure established by this Code for tax reporting. 5. A tax agent should file the following with the tax body at its location: 1) an escrow account agreement within 10 calendar days from the day it is signed (a copy of the agreement shall be stored with the relevant tax body); a statement of corporate income tax withheld at the source of payment from non-residents income, within the deadline established by article 196 of this Code, and which should record income tax transferred to the escrow account.
3.
4.
2)
6.
The tax body at a tax agents location should register an escrow account agreement or refuse to register an escrow account agreement within two calendar days from the moment the tax agent provides the agreement. In this respect, only those escrow account agreements should be registered that do not contradict the provisions of this article. The grounds for refusing registration shall be the failure of the escrow account agreement to comply with the provisions of this article. Non-residents and tax agents shall not be entitled to dispose of income tax in an escrow account until a tax body adopts a decision in favour of the non-resident. The provisions of this article shall only apply to escrow account agreements registered with a tax body. If an escrow account agreement has not been registered at the date income tax withheld at the source of payment is transferred as determined in accordance with article 195 of this Code, the income tax shall be transferred to the budget within the established deadline.
7.
8.
9.
10. A tax agent should record income accrued (paid) and taxes withheld in a statement filed with a tax body, as well as the rates at which tax was calculated.
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11. Tax bodies should keep a record of income tax amounts: placed in escrow accounts; returned to non-residents entitled to apply the provisions of an international treaty; transferred to the budget. Article 217. Procedure for refunding Income Tax from the Budget or an Escrow Account 1. A non-resident shall be entitled to an income tax refund in accordance with the provisions of an international treaty in accordance with the procedure established by this article, when: 1) a tax agent has transferred income tax from the non-residents income received from sources in the Republic of Kazakhstan to an escrow account or to the budget; the non-resident operates in the Republic of Kazakhstan through a branch or representative office that do not lead to the creation of a permanent establishment in accordance with an international treaty; a taxpayer pays tax in accordance with the provisions of this Code. In this respect, a non-resident should file a tax application with a tax body for a refund of income tax paid from the budget or an escrow account on the basis of an international treaty (hereafter for the purposes of this article and article 218 of this Code application) together with the documents determined by article 219 of this Code. 2. A non-resident shall file an application with the next highest tax body after the tax body at its location (except for the authorised body). If a tax agent is registered with a tax body that is lower in relation to the authorised body, the nonresident shall file its application to the tax body at question. 3. To meet the conditions of an international treaty, perform work and provide services in the Republic of Kazakhstan, except for work and services under long-term contracts, a non-resident shall file an application once work and services in the Republic of Kazakhstan have been completed. A taxpayer shall file an application with a tax body within the statute of limitation set by article 46 of this Code from the day income tax is placed in an escrow account or from the day income tax is transferred to the budget, unless otherwise established by an international treaty. A non-resident shall file applications with a tax body with respect to long-term contracts once the contract has been actually completed no later than the statute of limitation set by article 46 of this Code, unless otherwise established by an international treaty. 5. A tax body shall consider an application within 45 calendar days from the day the non-resident files it. If a cameral review during the consideration of an application highlights errors, a tax body, in accordance with chapter 84 of this Code, shall send notification to the non-resident requesting it to correct the errors. In this respect, the consideration period of the non-residents application shall be suspended until the errors are eliminated. While considering a non-residents application a tax body shall conduct a targeted audit of whether the tax agent calculated, withheld and transferred income tax at the source of payment from the income of the non-resident that submitted the application during the statute of limitation as established by article 46 of this Code. During an audit a tax body shall check documents to verify whether:
2)
3)
4.
6.
7.
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1)
the tax agent has fulfilled its tax obligations to calculate, withhold and transfer income tax at the source of payment from a non-residents income in full; the contracts provided are linked by a single project, contracts provided are linked to other contract(s) within the framework of a single project or related projects; the non-resident has already provided services to residents, the non-resident performs regular activities in the Republic of Kazakhstan; the non-resident has a permanent establishment in the Republic of Kazakhstan; actual work and service deadlines meet those stipulated in work and service contracts (this issue is covered while the non-resident applicant performs work or provides services in the Republic of Kazakhstan); the non-resident applicant has made a record of registration with the justice bodies in accordance with legislation of the Republic of Kazakhstan on the state registration of legal entities and the record of registration of branches and representative offices; filed applications have been completed correctly; applications or documents confirming residency include a signature or stamp of the foreign entity and competent body in a foreign country responsible for certifying the residency of a foreign entity; escrow account agreements have been registered with the tax bodies at the tax agents location (this issue shall be considered when the non-resident concludes these agreements);
2)
3)
4) 5)
6)
7) 8)
9)
10) the parties to an escrow account agreement have observed the conditions of the agreement (this issue shall be considered when the non-resident concludes these agreements). 8. If a non-resident has a representative office or branch in the Republic of Kazakhstan, the tax body considering the application should send a request to the tax body at the location of the branch or representative office to conduct a comprehensive tax audit of the non-resident for the period of the statute of limitation as established by article 46 of this Code to verify that the non-resident has fulfilled its tax obligations and whether it has a permanent establishment in the Republic of Kazakhstan. If a tax agent is liquidated, a tax body should send a request to the competent body in the nonresidents country of residence for information on the mutual relations between the tax agent and non-resident.
9.
10. In those cases when a non-resident fails to file the documents required by article 219 of this Code, or a tax body fails to send a request to the competent body of a foreign country or state body of the Republic of Kazakhstan to provide information, the deadline for considering a non-residents application shall be suspended until the documents and request information are received. In this respect, the period of suspension should not exceed the statute of limitation set by article 46 of this Code from the moment tax obligations arise to pay tax to the budget or to an escrow account. If the statute of limitation set by article 46 of this Code is exceeded, an application shall not be considered. 11. When a tax body adopts a decision to refund income tax withheld at the source of payment, the amount of income tax to be refunded shall be entered on the relevant application in accordance with the provisions of an international treaty, while the application shall be signed and stamped by the manager of the tax body. 12. If income tax has been paid to the budget and a decision has been made by a tax body at favour of a non-resident, the tax body shall return the income tax to the non-resident from the budget in accordance with the provisions of an international treaty in accordance with the procedure stipulated by article 602 of this Code, based on an application from the non-resident certified by the tax body. 152
13. In the event that income tax is transferred to an escrow account and a tax body adopts a decision in favour of a non-resident, the bank shall return income tax indicated in an application and accrued bank interest to the non-resident. In this respect, non-residents shall file an application certified by the tax body with a bank themselves. 14. When a tax body discovers any unlawful application of the provisions of an international treaty, it shall send a valid decision to refuse to return income tax withheld at the source of payment to the non-resident in question. The notification shall be drawn up on tax body letterhead and signed by its manager. 15. A decision of a tax body shall be sent to a non-resident by special recorded delivery. 16. If a non-resident does not agree with a negative decision of a tax body, the non-resident shall have the right to apply to the authorised body for a repeat review of the correct application of the provisions of an international treaty (if necessary, by engaging the competent body of the nonresidents country of residence) within: 1) 2) 90 calendar days from the day a negative decision is received or after 45 calendar days from the day an application is filed, in the event a decision has not been made. In this respect, a copy of the above request should be filed with the tax body that adopted the negative decision. A request shall be made in free form and should include the documents established by article 219 of this Code. 17. The authorised body should issue a justified decision on a request within 45 calendar days of receiving the request from a non-resident. If the authorised body adopts a decision to refund income tax withheld at the source of payment, a note shall be made in the application regarding the amount of income tax to be refunded in accordance with the provisions of an international treaty, while the application shall signed and stamped by the tax body manager. 18. If a non-resident considers that the taxation of income in the Republic of Kazakhstan contradicts the provisions of a particular international treaty, the non-resident shall be entitled to refer to the competent body of its country of residence with an application to review the legality of the application of the provisions of an international treaty in relation to the taxation of its income. In this respect, a non-resident should apply to the competent body in its country of residence with a request to contact the authorised body before applying to a court in the Republic of Kazakhstan during the statute of limitation set by article 46 of this Code. 19. The authorised body shall not be entitled to contact the competent body of a foreign country if a decision of a court of the Republic of Kazakhstan exists regarding the application of the provisions of an international treaty with respect to the income of a non-resident from sources in the Republic of Kazakhstan. Article 218. Procedure for transferring Income Tax from an Escrow Account to the Budget 1. Where a tax body rejects an application or has not received a copy of the request referred to in point 16 of article 217 of this Code, the tax body shall have 90 calendar days from the day a nonresident receives a rejected application to forward a collection order to the bank for the transfer of the tax indicated in the application and held in an escrow account. If a non-resident fails to file an application with a tax body within the statute of limitation set by article 46 of this Code, the tax body should send a collection order to the bank within 15 calendar days from the above deadline on the transfer of tax placed in an escrow account to an escrow account. At the same time as sending a collection order, a tax body shall send a request to a bank on interest accrued from the moment an amount of income tax was placed in a non-residents escrow 153
2.
3.
account until it was transferred to the budget, in accordance with the procedure and in the form established by the authorised body. 4. Within two calendar days from receiving a request, a bank should send data to a tax body on accrued bank interest in the form established by the authorised body. Data on accrued bank interest may be amended and supplemented and provided for tax reporting purposes in those cases and in accordance with the procedure established by this Code. 5. A tax body should send a bank a collection order to recover bank interest to the budget within two calendar days of receiving data on accrued bank interest. A bank should transfer income tax placed in an escrow account and accrued bank interest to the budget no later than one operating day following the day it receives a collection order. A bank shall be made accountable in accordance with laws of the Republic of Kazakhstan if it is guilty of breaching the conditions of an escrow account agreement and is late in transferring withheld income tax to the budget. If a bank is unable to fulfil its obligations to transfer income tax placed in an escrow account to the budget, the obligation to transfer income tax at the source of payment, bank interest and fines for the late transfer of tax to the budget shall be the responsibility of a tax agent.
6.
7.
8.
Article 219. Requirements for Documents confirming Residence, and for Tax Applications for a Refund of Income Tax paid from the Budget or an Escrow Account based on an International Treaty 1. If article 217 of this Code is applied, a tax body shall accept an application for a refund of income tax paid from the budget or an escrow account based on an international treaty provided it possesses the following: 1) notarised copies of contracts (agreements, treaties) to perform work, provide services or for other purposes; notarised copies of documents (foundation documents or excerpts from trade registers) with reference to the founders (participants) and major shareholders of a non-resident legal entity; copies of accounting documents confirming income accrued and withheld (paid) taxes; a document or notarised copy confirming residence issued by the competent body of a country of residence. For the purposes of this chapter, a non-resident, if its registration details have changed in its country of residence, should refile a document confirming residence or a notarised copy incorporating the amended data, in accordance with the procedure established by this chapter.
2)
3) 4)
2.
If a non-resident files a tax application for a refund of income tax paid from the budget or an escrow account based on an international treaty from income received on shares that are the underlying asset of depositary receipts, the following shall be attached to the application: 1) a list of depositary receipt holders from the joint stock company Central Securities Depositary, which should contain: the surnames, name, patronymic (if applicable) of the non-resident; information on the quantity and type of depositary receipts; the name and details of documents confirming the identity of the non-resident (for an individual), or the number and date of the state registration of the non-resident (for a legal entity); 2) a decision of a general meeting of the shareholder of an issuer of shares that are the underlying asset of depositary receipts, on the payment of dividends for a specific period, indicating the
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size of dividends per share and the date a list of shareholders entitled to dividends was compiled; 3) 4) currency account statements showing dividends received; a document confirming the non-residents residence that meets the requirements of point 4 of this article.
3.
If the documents referred to in points 1 and 2 of this article have been compiled in a foreign language, a non-resident should provide a notarised translation into Kazakh or Russian. For the purposes of this chapter, a document confirming the residence of a foreign entity shall be an official document confirming that a foreign entity recipient of income is a resident of a country with which the Republic of Kazakhstan has entered into an international treaty in a particular tax period during which taxable income has been accrued to a foreign entity from sources in the Republic of Kazakhstan in accordance with an international treaty. Such a document shall be certified by the competent body of the country of residence of the relevant foreign entity-recipient of income. In this respect, the signature and stamp of the body confirming a non-residents residence (document confirming residence), and also the signature and stamp of a foreign notary in the event a notarised copy of a document confirming residence has been filed shall be legalised in accordance with the procedure established by legislation of the Republic of Kazakhstan or an international treaty of which the Republic of Kazakhstan is one of the parties.
4.
Article 220. Certificate of Income received from Sources in the Republic of Kazakhstan and Tax withheld (paid) 1. In order to receive a credit for taxes paid in the Republic of Kazakhstan, or deduct income from sources in the Republic of Kazakhstan, a non-resident shall be entitled to obtain a certificate from a tax body on the amount of income received from sources in the Republic of Kazakhstan and taxes withheld (paid). To receive a certificate on an amount of income received from sources in the Republic of Kazakhstan and taxes withheld (paid), the following non-residents should file tax applications to the following tax bodies: 1) non-resident legal entity operating in the Republic of Kazakhstan without creating a permanent establishment at the location of the tax agent; non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment at the location of the permanent establishment; foreigner or stateless individual at the location of the tax agent; foreigner or stateless individual paying taxes on income from sources in the Republic of Kazakhstan themselves in the place of stay (residence) in the Republic of Kazakhstan.
2.
2)
3) 4)
3.
A tax body shall issue a certificate on an amount of income received from sources in the Republic of Kazakhstan and taxes withheld (paid) no later than 15 calendar days from the date a nonresident and (or) tax agent provide tax reporting that records the non-residents accrued income and taxes payable. If it is discovered that data in a taxpayers tax application does not match the data in the taxpayers and (or) tax agents tax reporting, also if tax has not been paid or a tax agent has not transferred tax from a non-residents income as at the date an application is filed, a tax body shall send a written refusal to issue a certificate to the non-resident. If a non-resident does not file a tax application, a tax body shall not issue a certificate on an amount of income received from sources in the Republic of Kazakhstan and taxes withheld (paid).
4.
5.
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6.
A tax body should maintain a register of transactions in the form established by the authorised body.
Chapter 27. Special considerations of the taxation of residents income from foreign trade activities
Article 221. Income received from Sources Outside of the Republic of Kazakhstan 1. For the purposes of this Code, income from sources outside of the Republic of Kazakhstan, irrespective of the place of payment, shall be recognised as all types of income that are not considered income from sources in the Republic of Kazakhstan. A resident taxpayer should record income from sources outside of the Republic of Kazakhstan in a tax declaration, as well as from sources in low-tax countries.
2.
Article 222. Procedure for deducting the Expenses of a Resident Legal Entity related to the Generation of Income from outside of the Republic of Kazakhstan 1. A resident taxpayer shall deduct in the Republic of Kazakhstan expenses related to the generation of income, including income from sources from outside the Republic of Kazakhstan, in accordance with the procedure established by the provisions of sections 4 and 6 of this Code. A resident taxpayer shall deduct expenses for a permanent establishment in a foreign country that were incurred both in the Republic of Kazakhstan and outside of the Republic of Kazakhstan, and which were related to the generation of income from sources outside of the Republic of Kazakhstan through the permanent establishment, in accordance with the provisions of tax legislation of that country. Executive and general administrative expenses incurred both in the Republic of Kazakhstan and outside of the Republic of Kazakhstan to generate the taxable income of a permanent establishment of a resident legal entity in a foreign country shall be deductible in accordance with the provisions of tax legislation of the country in question or an international treaty. Executive and general administrative expenses shall be deductible in a foreign country where a resident legal entity has generated income, in accordance with the procedure stipulated by tax legislation of that particular country. If tax legislation of a foreign country where a resident legal entity has generated income or an international treaty allows the deduction of executive and general administrative expenses, but at the same time tax legislation of the foreign country does not provide a procedure for deducting these expenses, the resident legal entity shall deduct the executive and general administrative expenses in the country in question in accordance with the procedure stipulated by articles 208211 of this Code. Article 223. Foreign Tax Credit 1. Any tax paid outside of the Republic of Kazakhstan on income or a similar type of tax from income received by a resident taxpayer from sources outside of the Republic of Kazakhstan shall be credit against a payment of corporate or individual income tax in the Republic of Kazakhstan provided documents are available confirming payment. Payment confirmation documentation shall be a certificate on an amount of income received from sources in a foreign country and taxes paid, which should be certified by a tax body at the residents home country. 2. The income of a resident taxpayer from sources outside of the Republic of Kazakhstan shall not be subject to a credit in the Republic of Kazakhstan if it is: 1) exempt from taxation in accordance with the provisions of this Code; 156
2.
3.
4.
2) 3)
adjustable in accordance with article 99 of this Code; taxable in the Republic of Kazakhstan in accordance with the provisions of an international treaty, irrespective of whether tax has been paid and (or) withheld from this income in a foreign country within excess tax paid in the foreign country. In this respect, excess tax paid shall be determined as the difference between actual tax paid and tax payable in a foreign country in accordance with the provisions of an international treaty.
3.
The amounts creditable under this article shall be determined for each foreign country separately. In this respect, an amount of creditable tax shall be the lesser of: 1) tax actually paid in a foreign country on income received by a resident taxpayer from sources outside of the Republic of Kazakhstan; income tax on income from sources outside of the Republic of Kazakhstan calculated in the Republic of Kazakhstan in accordance with the provisions of this chapter and sections 4 or 6 of this Code, as well as the provisions of an international treaty. During the statute of limitation set by article 46 of this Code a taxpayer shall credit foreign income tax on income from sources outside of the Republic of Kazakhstan in the tax period in which the income is receivable.
2)
4.
To determine the total amount of income tax paid in a foreign country on income received from sources in the same country that is creditable a resident shall complete the relevant appendix to a corporate or individual income tax declaration. A taxpayer should attach a notarised Kazakh or Russian translation of an original certificate on an amount of income received from sources in a foreign country and taxes paid.
5.
Article 224. Income received in a Low-Tax Country 1. Where, directly or indirectly, 10% or more of the charter capital of a non-resident legal entity located in and (or) registered in a low-tax country, or 10% or more of the voting shares of the said non-resident legal entity are directly or indirectly held by a resident, then the part of the nonresident legal entitys profit determined based on the residents interest in the charter capital of that non-resident legal entity shall be included in the residents taxable income in the Republic of Kazakhstan. The provision of this point shall also apply to a residents participation in other types of business activities that do not form a legal entity where participation interest directly or indirectly amounts to 10% or more. For the purposes of this article, profit shall be determined as the profit for the reporting period recognised in a non-resident legal entitys financial statements, less income tax. 2. The total profit of a non-resident legal entity located and (or) registered in a low-tax country, from which a part of profit is included in the taxable income of a resident of the Republic of Kazakhstan, should be confirmed by the non-residents consolidated financial statements. The resident referred to in point 1 of this article should file copies of the following documents with the tax body at its place of stay (residence) on or before 31 December of the year following the reporting tax period, together with a notarised translation into Kazakh or Russian: 1) the residents consolidated financial statements (if the taxpayer is a legal entity with a subsidiary); the financial statements of the non-resident entity referred to in point 1 of this article; the consolidated financial statements of the non-resident legal entity referred to in point 1 of this article, with information broken down into subsidiaries in low-tax countries (if the non-resident legal entity has a subsidiary);
3.
2) 3)
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4)
an audit report for the documents referred to in this point if legislative acts of the Republic of Kazakhstan or a foreign country stipulate an obligatory audit for the persons in question.
4.
A foreign country shall be recognised as a low-tax country if it meets one of the following conditions: 1) 2) the rate of income tax in the country in question is no more than 10%; the country in question has laws on the confidentiality of financial information or laws that maintain the confidentiality of the actual owner of property, income or actual company owners, founders or shareholders. A list of low-tax countries shall be determined by the Government of the Republic of Kazakhstan.
5.
For the purposes of this article the administrative and regional units of a foreign country shall also be recognised as a low-tax country if they meet one of the following conditions: 1) the rate of income tax applied to a non-resident legal entity in a particular administrative and regional unit is no more than 10%; the administrative and regional unit in question has laws on the confidentiality of financial information or laws that maintain the confidentiality of the actual owner of property, income or actual company owners, founders or shareholders.
2)
6.
The provisions of this article shall apply irrespective of the concessions, investment tax preferences, most favoured nation treatment provided by the Republic of Kazakhstan to a resident and (or) established by legislation of the Republic of Kazakhstan for residents, and also other conditions of taxation that are more favourable than those stipulated by this Code.
Article 225. Procedure for a Resident to apply an International Treaty in a Foreign Country 1. If a resident receives income from sources in a foreign country with which the Republic of Kazakhstan has concluded an international treaty, when executing the conditions of the relevant international treaty, a resident shall be entitled to apply the provisions of the international treaty in the country of question in order to receive a tax exemption or reduce tax rates on this income in the foreign country. The provisions of an international treaty shall be applied to residents income from sources outside of the Republic of Kazakhstan if the conditions established by article 206 of this Code are met. When residency of the Republic of Kazakhstan needs to be confirmed, a resident shall apply to the next highest tax body to the tax body at its place of stay (residence) (except for the authorised body) to receive confirmation of residence. In this respect, the following taxpayers should file notarised copies of the following together with a tax application to receive confirmation of tax residence: 1) a foreign legal entity that is a resident by virtue of its effective place of management being in the Republic of Kazakhstan, - a document confirming the existence in the Republic of Kazakhstan of the legal entitys place of effective management (actual management body) (minutes of a general meeting of a board of directors or similar body that refer to the location of the meeting, or other documents confirming the location of main management and (or) control, and also for adopting strategic commercial decisions required for the legal entity to operate); a citizen of the Republic of Kazakhstan who is a resident identity card or passport of the Republic of Kazakhstan; foreigner and stateless individual who are residents: identity card or passport;
2.
3.
2)
3)
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a document confirming the period of stay in the Republic of Kazakhstan (visa or other documents). 4. A document confirming residency shall be issued by the next highest tax body to the tax body at its place of stay (residence) (except for the authorised body) within 15 calendar days from the day a resident files a tax application. If a resident considers that the taxation of income in a foreign country contradicts the provisions of a particular international treaty, it may refer to the competent body of its country of residence or the authorised body, irrespective of security measures stipulated by domestic legislation of the foreign country, with an application to review the legality of the application of the provisions of an international treaty in relation to the taxation of its income.
5.
Article 226. Procedure for Mutual Cooperation 1. If a resident applies to the authorised body for a review of the application of the provisions of an international treaty in relation to the taxation of its income, it should attach the following notarised copies of: 1) 2) contracts (agreements, treaties) to perform work (provide services) or for other purposes; documents (foundation documents or excerpts from trade registers) with reference to the founders (participants) and major shareholders of a resident legal entity; accounting documents confirming income accrued and paid, and withheld taxes; the documents referred to in point 3 of article 225 of this Code.
3) 4) 2.
A resident should file an application within the statute of limitation set by article 46 of this Code, from the moment taxation that does not comply with the provisions of an international treaty arises in a foreign country, unless otherwise established by the international treaty. The authorised body review an application from a resident within 45 calendar days of receiving it and, if the residents application of the provisions of an international treaty in a foreign country is justified, send a request to the competent body of the foreign country for mutual cooperation.
3.
Article 227. Assistance in Tax Collection 1. The authorised body, in accordance with the provisions of an international treaty, shall be entitled to request the assistance of the competent body of a foreign country to recover a tax obligation by sending a tax claim in the form established by the authorised body. A tax claim shall be sent to the competent body of a foreign country if a non-resident fails to fulfil a tax obligation or does not do so in full with respect to the income of its permanent establishment from sources outside of the Republic of Kazakhstan only after all possible forced recovery measures have been taken as established by this Code. If a request for assistance has been received from the competent body of a foreign country, the authorised body shall be entitled to ensure that the resident in question fulfils its obligation in the foreign country. In this respect, the authorised body shall consider the legality of tax on a residents income from sources in a foreign country in accordance with the provisions of an international treaty and shall issue an opinion. In the event of a positive outcome to the request of the competent body of a foreign country, the authorised body, in accordance with the provisions of an international treaty, shall ensure that a resident fulfils its tax obligations in accordance with the procedure established by this Code. At the request of the authorised body a resident taxpayer shall transfer tax to the account of the competent body of the foreign country referred to in the request for cooperation in tax collection sent according to the provisions of an international treaty. The authorised body shall review the requests of the competent body of a foreign country on the principle of reciprocity. 159
2.
3.
4.
5.
The provisions of this article shall apply until the end of the statute of limitation set by article 46 of this Code, unless otherwise established by an international treaty.
Section 8. Value added tax Chapter 28. General provisions

Article 228. Payers 1. Payers of value added tax shall be: 1) persons that have been registered for value added tax purposes in the Republic of Kazakhstan: individual entrepreneurs; resident legal entities, except for state institutions; non-residents operating in the Republic of Kazakhstan through a branch or representative office; trust managers creating turnover from the realisation of goods, work and services under trust management agreements with settlers or beneficiaries in other trust management cases; 2) persons importing goods into the Republic of Kazakhstan in accordance with customs legislation of the Republic of Kazakhstan.
2.
Registration for value added tax purposes shall be carried out in accordance with articles 568 and 569 of this Code.
Article 229. Objects of Taxation The objects of taxation for value added tax purposes shall be: 1) 2) taxable turnover; taxable imports.
Chapter 29. Taxable turnover

Article 230. Definition of Taxable Turnover 1. Taxable turnover shall be turnover concluded by a payer of value added tax: 1) upon the sale of goods, work and services in the Republic of Kazakhstan, except for the nontaxable turnover referred to in article 232 of this Code; upon the purchase of work and services from a non-resident who is not a payer of value added tax in the Republic of Kazakhstan and who does not operate through a branch or representative office.
2)
2.
Balances of goods (including tangible assets, intangible and biological assets, investment in real estate) for which value added tax has been offset in accordance with article 256 of this Code, when de-registering a person for value added tax purposes, shall be regarded as turnover from the realisation of goods in the Republic of Kazakhstan. This point shall not apply when a legal entity de-registers for value added tax purposes due to its reorganisation, provided all legal entities created as a result of a merger or legal entity to which a
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different legal entity (legal entities) has been joined are payers of value added tax after reorganisation. Article 231. Turnover from the Realisation of Goods, Work and Services 1. With respect to goods, realisation turnover shall imply: 1) a transfer of ownership rights to goods, including: the sale of goods; the sale of a whole enterprise as a property complex; the shipment of goods, including the exchange of goods for other goods, work and services; the export of goods; the transfer of goods free of charge; the transfer of goods by an employer to an employee in lieu of salary; 2) 3) 4) 5) 6) 2. the shipment of goods under instalment payment conditions; the transfer of property to financial lease; the shipment of goods under commission agreements; the transfer of pledged property (goods) by a pledger in the event of debt non-payment; the re-import of a good previously exported.
Turnover from the realisation of work and services shall mean any performance of work or provision of services, including free of charge, as well as any activity performed for compensation other than the realisation of goods, including: 1) 2) 3) the provision of property for temporary possession and use through property lease agreements; the provision of rights to objects of intellectual property; the performance of work or provision of services by an employer to an employee in lieu of salary; the assignment of rights to claim related to the realisation of goods, work or services, except for advances and fines; an agreement to limit or cease business activities in return for compensation.
4)
5) 3.
The following shall not be regarded as realisation turnover: 1) 2) 3) the transfer of property as a contribution to charter capital; the return of property received as a contribution to charger capital; the transfer or gifting of goods for advertising purposes free of charge, where the value of a single unit does not exceed twice the monthly calculation index set by the law on the state budget for the relevant financial year; a customers shipment of tolling goods to a contractor so that the latter can manufacture, process, assemble (install) and (or) repair finished products, and (or) construct objects. Where manufacture, processing, assembly or repair takes place outside of the Republic of Kazakhstan, the shipment of the said goods shall not be regarded as realisation turnover provided they are 161
4)
exported in accordance with customs legislation of the Republic of Kazakhstan under the processing of goods outside the customs territory regime; 5) the shipment of returnable containers. A returnable container shall be a container whose value has not been included in the realisation price of the product contained in it and which shall be returned to the supplier under the conditions and within the deadline established by a supply agreement (contract), which should be in excess of six months. Any container not returned within the specified deadline shall be included in realisation turnover; the return of a good, except for the return of a good under the re-import regime, which had been previously exported under the export regime; the export of goods to outside the Republic of Kazakhstan for exhibition purposes or for other cultural or sporting events and which are to be re-imported under conditions and within the deadline established by an agreement, where the export in question is in compliance with the temporary export of goods customs regime in accordance with customs legislation of the Republic of Kazakhstan; a subsoil users transfer of property newly created and (or) purchased by the subsoil user to ownership of the Republic of Kazakhstan, when the property was used to conduct subsoil use operations and is to be transferred to the Republic of Kazakhstan in accordance with the conditions of a concluded subsoil use contract; the placement of an issuers equity securities;
6)
7)
8)
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10) the transfer of the tangible assets, intangible assets and other property of a reorganised legal entity to its legal successor(s); 11) the transfer of a concession object to a concedent, and also the subsequent transfer of a concession object to the concessionaire (legal successor or legal entity specially created by the concessionaire to realise a concession agreement) to be used within the framework of a concession agreement; 12) turnover from the realisation of an individuals property if the individual does not use the property for business purposes; 13) the transfer of property to a trust manager by a settler under a property trust management agreement or by the beneficiary in other trust management cases; 14) the return of property by a trust manager once a document acting as the basis for trust management has expired; 15) a trust managers transfer of net income from trust management to the settler under a property trust management agreement or to the beneficiary in other trust management cases. Article 232. Non-Taxable Turnover Non-taxable turnover shall be turnover from the realisation of goods, work and services: 1) 2) that is exempt from value added tax in accordance with this Code; where the place of realisation is not the Republic of Kazakhstan.
The place of realisation for goods, work and services shall be determined in accordance with article 236 of this Code. Article 233. Realisation (Purchase) Turnover under Agency Agreements 1. The shipment of goods, performance of work or provision of services, and also the purchase of goods, work and services by an agent on behalf of and at the expense of a principal shall not be the agents realisation (purchase) turnover. 162
2.
The provisions of point 1 of this article shall not apply in relation to: 1) 2) an agents shipment of goods, performance of work and provision of services to a principal; the shipment of goods received from a non-resident principal who is not a payer of value added tax in the Republic of Kazakhstan and which does not operate through a branch or representative office. In this case, the shipment of goods shall be included in the agents realisation turnover.
Article 234. Realisation (Purchase) Turnover concluded under Trust Management Agreements A shipment of goods, performance of work, provision of services, purchase of goods, work or services by a trust manager in accordance with a trust management agreement or other document that is the basis for trust management shall be considered the trust managers realisation (purchase) turnover. Article 235. Realisation (Purchase) Turnover within the Framework of Agreements on Joint Activities 1. When goods, work and services (including mineral resources produced) are realised by an agent for and (or) on behalf of a party (parties) to an agreement on joint activities: 1) a tax invoice shall be issued on behalf of one of the parties to the agreement on joint activities or on behalf of the agent, indicating the details of the party (parties) to the agreement on joint activities in supplier (seller) line; when drawing up tax invoices, total turnover and also the amount of turnover owed by each of the parties according to the conditions of the agreement on joint activities shall be recorded.
2)
2.
An original tax invoice shall be issued to both the purchaser of goods, work and services (including mineral resources produced and realised by a subsoil user), and also to each of the parties to an agreement on joint activities depending on the number of parties performing subsoil user operations within the framework of a single subsoil use contract (agreement). In those cases when a party (parties) to an agreement on joint activities or agent purchase goods, work or services in connection with these activities, the tax invoices received from the supplier (seller) should indicate: 1) the details of the party (parties) to the agreement on joint activities in terms of the number of parties to the agreement on joint activities or agent; the purchase value, including the amount of value added tax due owed by each of the parties to the agreement on joint activities.
3.
2)
4.
The number of original tax invoices issued in such cases should match the number of parties to an agreement on joint activities for which goods, work or services are purchased.
Article 236. Place of Realisation of Goods, Work or Services 1. The place of realisation of goods shall be recognised as the place where: 1) the transportation of the goods starts if the goods are being shipped (sent) by a supplier, recipient or third party; in all other cases the place where the goods transfer to the recipient.
2) 2.
The place of realisation of work or services shall be recognised as the place where: 1) immovable property is located, provided that the work or services are directly related to that property.
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The location of immovable property shall be recognised as place where the state registration of rights to immovable property was carried out or its actual location should the property in question not require state registration. For the purposes of this article, immovable property shall be recognised as buildings, structures, perennial plantations and other property firmly connected to the ground, in other words where any movement may be detrimental to their function, and also pipelines, power lines, space facilities, and enterprises as property complexes; 2) work and services are actually performed, if they are associated with movable property. These work and services shall include assembly, installation, repair and technical maintenance; 3) services are actually provided, if these services are associated with services in the field of culture, art, education, science, physical training or sport. For the purposes of this subpoint, entertainment services shall include leisure services that are provided in entertainment centres (gaming centres; nightclubs; cafes; bars; restaurants; Internet-cafes; computer, billiard and bowling clubs and cinemas; other buildings, premises and structures); 4) where the purchaser of work or services performs business or other activities. Unless otherwise stipulated by this subpoint, the place where a purchaser of work or services performs business or other activities shall be considered the Republic of Kazakhstan if the purchaser is present in the Republic of Kazakhstan based on state registration (a record of registration) in the justice bodies or based on a record of registration with the tax bodies as an individual entrepreneur. If the purchaser of work or services is a non-resident, and the recipient is its branch or representative office whose state registration (record of registration) has been carried out with the justice bodies of the Republic of Kazakhstan, then the place of realisation shall be the Republic of Kazakhstan. The provisions of this subpoint shall apply to the following types of work and services: the transfer of rights to use objects of intellectual property; consultancy, audit, engineering, designer, marketing, legal, accounting, advocatory and advertising services, as well as data provision and (or) processing services, except for the distribution of mass media products, and also the provision of access to information on web sites on public telecommunications networks; personnel secondment; the rental of movable property (except for means of transport); agency services to purchase goods, work or service, or a person engaged on behalf of the main party to an agreement (contract) to provide the services stipulated by this subpoint; communications; an agreement to restrict or cease business activities in return for compensation; radio and television services; tourism services; freight wagon and container leasing services; 5) the business or other activities of a person performing work or providing services not stipulated by subpoints 1)-4) of this point and point 4 of this article. 164
The place of the business or other activities of a person working or providing services not stipulated by subpoints 1)-4) of this point shall be the Republic of Kazakhstan if the person in question exists in the Republic of Kazakhstan by virtue of state registration (record of registration) with the justice bodies or based on a record of registration with the tax bodies as an individual entrepreneur. 3. If a realisation of goods, work or services has an auxiliary nature in relation to the realisation of other main goods, work or services, the place of auxiliary realisation shall be where the realisation of main goods, work or services takes place. The place of realisation of work and services shall not be the Republic of Kazakhstan when services are provided to transport passengers and baggage; to transport goods, including mail, provided the following conditions are met simultaneously: passengers and transportable goods (mail and baggage) are not imported into the Republic of Kazakhstan; passengers and transportable goods (mail and baggage) are not exported from the Republic of Kazakhstan; passengers are not transported, goods (mail and baggage) are not transported through the Republic of Kazakhstan. 5. When applying point 2 of this article, the place where work is performed or services indicated in more than one subpoint are provided, shall be determined by the first of these subpoints in order.
4.
Article 237. Completion Date of Realisation Turnover 1. Unless otherwise stipulated by this article, the completion date of realisation turnover for goods, work and services shall be the date goods are shipped (transferred), work is performed and services are provided. The day work is performed and services are provided shall be the date an act of completion is signed for the work and services. 2. If goods are not shipped the completion date of realisation turnover shall be the day ownership rights to the good are transferred to the recipient. If goods are exported under the export regime, the completion date of realisation turnover shall be: 1) the date the border of the Republic of Kazakhstan is actually crossed at a specific point determined in accordance with customs legislation of the Republic of Kazakhstan; the date a full freight customs declaration is drawn up with a note from the customs body performing customs clearance, when: goods are exported under the export regime using the periodic declaration procedure; goods are exported under the export regime using the temporary declaration procedure. 4. When a pledger transfers pledged property (goods), the pledgers completion date of realisation turnover shall be one of the following dates: 1) the day ownership rights to collateral transfer from the pledger to the winner of a trading session held while the pledged property was under seizure; the day ownership rights to collateral transfer from the pledger to the pledge holder, if an auction has been declared as not having taken place.
3.
2)
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5.
In the case of de-registration for value added tax purposes, the completion date of the taxable realisation turnover referred to in point 2 of article 230 of this Code shall be: 165
1)
the day on which the payer of value added tax files a tax application for de-registration as a payer of value added tax, or the tax application referred to in articles 37-43 of this Code; the date referred to in point 6 of article 571 of this Code when a person has been de-registered for value added tax purposes in accordance with a tax body decision.
2)
6.
Where a lessor transfers property to a lessee as a tangible asset, investment in real estate, biological assets, except for a transfer under a leaseback agreement, the completion date of realisation turnover shall be: 1) the deadline for receiving regular lease payments passes, as established by a financial lease agreement, except for those cases stipulated in subpoints 2) and 3) of this point; where, under the terms of a financial lease agreement, the deadline for regular lease payments passes before property is transferred to the lessee, the completion date of turnover shall be established as the date on which the property is transferred to financial lease; where the lessee makes its lease payments under the terms of a financial lease agreement ahead of schedule, the day on which the final payment is made shall be taken to be the final completion date of realisation turnover for the financial lease agreement in question.
2)
3)
7.
When a lesser transfers property, which a lessee (seller) is to receive as a tangible asset, investment in real estate and biological assets under a lease-back agreement, the completion date of realisation turnover shall be the date the property is transferred to financial lease. If work or services are realised on a continual (uninterrupted) basis, the completion date of taxable realisation turnover shall be whichever of the following dates occurs first: 1) 2) a tax invoice is made out inclusive of value added tax; the receipt of each payment (regardless of the form of payment). A realisation on a permanent (uninterrupted) basis shall be understood as the performance of work, the provision of services based on a long-term contract, provided that the beneficiary of work or services may use the results in production activities on the day work is performed or services are provided.
8.
9.
Where work or services are received from a non-resident that is not a payer of value added tax in the Republic of Kazakhstan and does operate through a branch or representative office, the completion date of turnover shall be the date an act of acceptance is signed for work performed or services provided.
Chapter 30. Size of taxable turnover

Article 238. Size of Taxable Turnover 1. The size of taxable turnover shall be determined based on the value of goods, work or services using the prices and tariffs adopted by the transacting parties exclusive of value added tax, unless otherwise specified by this article and transfer pricing legislation of the Republic of Kazakhstan. Where goods are exchanged free of charge, and also in those cases envisaged by point 2 of article 230 of this Code, the size of taxable turnover shall be determined based on the level of prices applicable on the completion date of realisation turnover exclusive of value added tax, but which should be no lower than their book value. For the purposes of this point, the book value shall be the value of goods recorded in accounting on the date the goods in question are realised. 3. When assigning rights to a claim on goods, work or services realised that are subject to value added tax, except for advances and fines, the size of taxable turnover shall be the positive 166
2.
difference between the value of the claim in question, and the value of the claim from a debtor as at the date the right to the claim is assigned, according to the taxpayers primary documents. 4. Where pledged property (goods) is transferred by a pledger, the size of the pledgers taxable turnover shall be determined from the value of realisable pledged property (goods), but should be no lower than the funds borrowed under the pledge of the property (goods) in question, exclusive of value added tax. Where goods are realised under instalment payment conditions, the size of taxable turnover shall be determined in accordance with point 1 of this article, taking into account all due payments stipulated by the conditions of the agreement. Taxable turnover shall include commission where payment for a third party is provided as a service. Excise duty on excisable goods and activities shall be included in taxable turnover. Following the realisation of goods for which an offset of value added tax has not been stipulated in accordance with tax legislation valid at the date of their purchase, the size of taxable turnover shall be taken as the positive difference between the realisation value and book value of the goods, as determined in point 2 of this article. When transferring a right to hold and (or) use, and (or) dispose of a land plot purchased without value added tax, realisation turnover shall be determined as capital gains from the realisation of land plots in accordance with the procedure stipulated by article 87 of this Code.
5.
6.
7. 8.
9.
10. Where property to be received by a lessee as a tangible asset, investment in real estate or biological assets, except for transfer under a leaseback agreement, is transferred to a financial lease, the size of taxable turnover shall be determined: 1) on the completion date of turnover as set forth in subpoint 1) of point 6 of article 237 of this Code, basis on the size of a lease payment set in accordance with the financial lease agreement, exclusive of interest and value added tax; on the completion date of turnover as set forth in subpoint 2) of point 6 of article 237 of this Code, based on the sum of all regular lease payments exclusive of interest and value added tax, where under the terms of a financial lease agreement, the period for regular lease payments commences before the property is transferred to the lessee; on the completion date of turnover as set forth in subpoint 3) of point 6 of article 237 of this Code, calculated as the difference between total lease payments receivable under the terms of a financial lease agreement, exclusive of interest and value added tax, and the size of taxable turnover determined as taxable turnover as on the previous completion date of turnover under the given agreement.
2)
3)
11. When property to be received by a lessee (seller) as a tangible asset, investment in real estate or biological assets, is transferred under a leaseback agreement, the volume of turnover from the realisation shall be defined in accordance with point 1 of this article. 12. For the provision of services under a transport forwarding agreement, the size of the forwarding agents taxable turnover shall be determined based on its commission. 13. When selling an enterprise as a property complex, the size of taxable turnover shall be determined based on the book value of property to be transferred from the sale of the enterprise as a property complex for which value added tax has already been offset: 1) increased by the positive difference between the realisation value under a purchase and sale agreement for the enterprise, and the book value of the assets to be transferred, less the book value of liabilities to be transferred, according to accounting data at the realisation date, or
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2)
decreased by the negative difference between the realisation value under a purchase and sale agreement for the enterprise, and the book value of the assets to be transferred, less the book value of liabilities to be transferred, according to accounting data at the realisation date.
14. Unless otherwise stipulated by this Code, the provisions of this section regarding the size of taxable turnover (including adjustments) shall apply when determining the size of non-taxable turnover. 15. When realising goods, performing work or providing services under conditions that meet the conditions of a commission agreement, the commissioners taxable turnover shall be determined based on the size of its commission. Article 239. Adjustment to the Size of Taxable Turnover 1. If the value of goods, work or services realised rises or falls, taxable turnover shall be adjusted accordingly. A taxpayers taxable turnover shall be adjusted where: 1) 2) 3) 4) 5) goods are returned in part or in full; transaction conditions change; the price of or compensation for goods, work or services realised have changed; price reductions are in place; a difference has been recorded in the value of goods, work or services realised when payment is made in tenge; packaging included in realisation turnover in accordance with subpoint 5) of point 3 of article 231 of this Code is returned.
2.
6)
3.
Taxable turnover shall be adjusted in accordance with this article if the following conditions have been observed simultaneously: 1) documents are available that are the basis for adjustments in those cases referred to in point 2 of this article; an additional tax invoice exists containing a negative (positive) amount of taxable turnover and value added tax.
2)
A reduction in taxable turnover should not exceed previously recorded taxable turnover from the realisation of the same goods, performance of the same work and provision of the same services. Article 240. Adjustment of Taxable Turnover on Doubtful Claims 1. If all or a part of a claim on goods, work or services realised constitute a doubtful claim, a payer of value added tax shall be entitled to reduce the taxable turnover on the claim: 1) at the end of 3 years from the end of the tax period in which the value added tax associated with the doubtful claim was recorded; in the tax period in which the judicial bodies passed a decision to remove a bankrupt debtor from the state register of legal entities. Taxable turnover shall be adjusted in accordance with this point provided the conditions referred to in article 105 of this Code have been observed. 2. Taxable turnover on a doubtful claim shall be reduced up to a limit of previously recorded taxable turnover from the realisation of goods, performance of work and provision of services. 168
2)
3.
If payment for goods, work or services realised is received after a payer of value added tax has made use of the right granted under point 1 of this article, taxable turnover shall be increased by the value of the given payment in the same tax period as that in which payment was received.
Article 241. Taxable Turnover from the Purchase of Work and Services from a Non-Resident who is not a Payer of Value Added Tax in the Republic of Kazakhstan and who does not operate through a Branch or Representative Office 1. Work or services provided by a non-resident who is not a payer of value added tax in the Republic of Kazakhstan and who does not operate through a branch or representative office shall be considered the turnover of the taxpayer of the Republic of Kazakhstan receiving the work or services if the Republic of Kazakhstan is the place where the work or services are performed, and shall be subject to value added tax in accordance with this Code. For the purposes of this article, the taxable turnover of the recipient of work and services shall be determined based on the value of the purchased work and services referred to in point 1 of this article, including taxes, except for value added tax. Value added tax payable in accordance with this article shall be determined by applying the rate stipulated in point 1 of article 268 of this Code to taxable turnover. Where payment for work or services received is made in a foreign currency, taxable turnover shall be recalculated into tenge at the market currency exchange rate on the completion date of turnover. Value added tax calculated in accordance with point 3 of this article shall be paid within the deadline for filing a value added tax declaration as stipulated in article 270 of this Code. A payment document or document issued by a tax body at the format established by the authorised body, and which confirms payment of value added tax in accordance with this article, shall entitle a taxpayer to offset tax in accordance with article 256 of this Code. The provisions of this article shall not apply if: 1) 2) work or services provided are those listed in article 248 of this Code; the work and services referred to in point 1 of this article have undergone import customs clearance.
2.
3.
4.
5.
6.
Chapter 31. Turnover taxable at the zero rate

Article 242. Export of Goods Turnover from the realisation of goods for export shall be taxed at the zero rate. An export of goods shall mean the removal of goods from the customs territory of the Republic of Kazakhstan in compliance with customs legislation of the Republic of Kazakhstan. Article 243. Confirmation of an Export of Goods 1. The following documents shall serve as confirmation of export: 1) 2) an agreement (contract) to supply goods for export; a freight customs declaration with a note from the customs body releasing the goods under the export regime, and also with a note from the customs bodies at a point of entry on the customs border of the Republic of Kazakhstan, except for those cases in subpoint 3) of this article; a full freight customs declaration with a note from the customs body responsible for customs clearance when:
3)
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goods are exported under the regime for export through major pipelines or power lines; goods are exported under the export regime using the periodic declaration procedure; goods are exported under the export regime using the temporary declaration procedure; 4) copies of bills of lading. Where goods are exported through major pipelines or electricity lines, an act of acceptance should be filed instead of copies of bills of lading; 5) confirmation from the authorised body for the protection of rights to intellectual property on the right to an object of intellectual property and its value if objects of intellectual property are being exported.
2.
If goods already exported from the customs territory of the Republic of Kazakhstan under the regime for processing outside the customs territory, or products made from them, are further exported, the export shall be confirmed in accordance with point 1 of this article and on the basis of the following documents: 1) a freight customs declaration, in accordance with which the processing regime has been changed to the export regime; a freight customs declaration drawn up under the regime for processing goods outside the customs territory; a copy of the freight customs declaration drawn up to import goods into a foreign country under the regime for processing goods in the customs territory (processing of goods under customs control), and certified by the customs body responsible for the customs clearance of the said goods; a copy of a freight customs declaration used to change the regime from processing goods under customs control in a foreign country to the release of goods into free circulation in a foreign country, or the export regime.
2)
3)
4)
Article 244. Taxation of International Transportation 1. Turnover from the realisation of the following international transportation services shall be taxed at the zero rate: 1) the transportation of goods, including mail exported from the Republic of Kazakhstan and imported into the Republic of Kazakhstan; the transportation of transit freight through the Republic of Kazakhstan; the international transportation of passengers and baggage.
2) 3) 2.
For the purposes of point 1 of this article, a transportation shall be considered as international if it is executed according to common international transportation documentation and, if export goods are exported through a major pipeline system; by documentation confirming the transfer of goods being exported to a customer or other persons responsible for their further delivery, with the provision of a freight customs declaration drawn up under the export customs regime. Unless otherwise stipulated by this point, if several transportation companies transport passengers to outside of the Republic of Kazakhstan and goods for export through the Republic of Kazakhstan, the start of the international transportation shall be recognised as where the transportation company transporting the passengers or goods (mail, baggage) up to the borders of the Republic of Kazakhstan starts its activities. Unless otherwise stipulated by this point, if several transportation organisations transport passengers and goods (mail, baggage) for import into the Republic of Kazakhstan, the term international shall apply to transportation carried out by a transportation organisation that uses its
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means of transport to transport passengers or goods (mail, baggage) into the Republic of Kazakhstan. 3. For the purposes of this article uniform international transportation documents shall be: 1) when transporting freight: on international automobile routes consignment notes; on international railway routes standard way bills; by air airway bills; by major pipeline: a freight customs declaration for a transit volume of goods for each major pipeline during a particular period; acts of completion, acts of acceptance; tax invoices; 2) when transporting passengers and baggage: by motor vehicle: for scheduled transportations a report on tickets sold in the Republic of Kazakhstan, as well as payment lists for passenger tickets compiled by bus stations on specific routes; for unscheduled transportations passenger lists; by railway: a report on travel, waybills and mail documents sold in the Republic of Kazakhstan; payment lists for passenger tickets sold in the Republic of Kazakhstan for international routes; a balance sheet showing payments for passenger transportations between railway administrations and a report on the registration of travel and transportation documents; by air: a general declaration; passenger lists; cargo lists; loading lists; loading documents (tickets and baggage receipts). Article 245. Taxation in Specific Cases 1. Value added tax shall be charged at the zero rate on turnover from the realisation of goods of own production for taxpayers operating in the Republic of Kazakhstan within the framework of a subsoil use contract that exempts imported goods from value added tax. If a subsoil use contract specifies a list of imported goods exempt from value added tax, then turnover from the realisation of goods in this list shall be exempt from value added tax.
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For the purposes of this article, goods of own production shall be recognised as products (goods) produced by payers of value added tax themselves and that have a foreign economic activity code that differs in any of the first four digits from the code for the raw materials and materials used in the production process and comprising the manufactured product (good), and that meet the sufficient processing criteria stipulated by customs legislation of the Republic of Kazakhstan. The list of taxpayers indicated in this article shall be approved by the Government of the Republic of Kazakhstan. 2. The documents used to confirm the realisation of goods to the taxpayers indicated in point 1 of this article shall be: 1) an agreement to supply goods to taxpayers operating in the Republic of Kazakhstan under a subsoil use contract that exempts goods for import from value added tax, and which should show that goods being supplied are to be used in the subsoil use contracts work programme; copies of bills of lading confirming the shipment of goods to taxpayers; copies of documents confirming the receipt of goods by taxpayers.
2) 3)
Chapter 32. Taxable imports

Article 246. Definition of Taxable Imports Goods being imported or already imported into the Republic of Kazakhstan (except for those exempt from value added tax in accordance with article 255 of this Code) that should be declared in accordance with customs legislation of the Republic of Kazakhstan shall be regarded as taxable imports. Article 247. Size of Taxable Imports The size of taxable imports shall include the customs value of imported goods as determined in accordance with customs legislation of the Republic of Kazakhstan, as well as taxes and other obligatory payments payable to the budget on the import of goods into the Republic of Kazakhstan, except for value added tax on imports.
Chapter 33. Turnover and imports exempt from value added tax
Article 248. Turnover Exempt from Value Added Tax Turnover from the realisation of the following goods, work or services shall be exempt from value added tax: 1) 2) state issued postal stamps; excise stamps (inventory control stamps used to mark excisable goods in accordance with article 653 of this Code); services provided by authorised state bodies for which state duty is levied; property procured for state needs in accordance with legislation of the Republic of Kazakhstan; the transfer of tangible assets, investment in real estate, intangible and biological assets free of charge in favour of state institutions, or state companies in accordance with legislation of the Republic of Kazakhstan; funeral, cemetery and crematoria services; lottery tickets, but not services relating to their realisation; 172
3) 4) 5)
6) 7)
8)
services to provide information and technical coordination between transaction parties, including the provision of services to collect, process and send information to transaction parties on transactions with payment cards; services to process and (or) repair goods imported into the Republic of Kazakhstan under the customs regime processing of goods in the customs territory of the Republic of Kazakhstan;
9)
10) work and services associated with transportation recognised as international in accordance with article 244 of this Code, more specifically: loading, unloading, reloading (including loading and unloading of liquid goods) work, services, dispatching, including mail, exported from the Republic of Kazakhstan or imported into the Republic of Kazakhstan, and also transit freight; technical, aero-navigational, airport services; services of seaports to service international voyages; 11) services to manage, maintain and run the housing fund; 12) banknotes and coins of the national currency; 13) goods, work or services, except for turnover from the realisation of goods, work or services from trading and intermediary activities and turnover from the production and realisation of excisable goods of public associations of handicapped individuals, and also production organisations if these associations and organisations meet the following conditions: handicapped individuals make up no less than 51% of the total employees of these production organisations; expenses to pay employment compensation to handicapped individuals make up no less than 51% (in specialised organisations in which no less than 35% of employees are individuals with hearing, speech and vision difficulties) of total employment compensation expenses; 14) services to lease premises in a rental house accordance with legislation on housing relations; 15) the repair and (or) maintenance of goods free of charge during a warranty period, including the value of spare parts, if the conditions of the transaction guarantee the quality of goods realised, work performed or services provided; 16) affined precious metals gold, platinum made from raw materials of own production; 17) services in relation to the activities referred to in articles 411 and 420 of this Code; 18) those referred to in articles 249-254 of this Code; 19) services provided to perform notary and advocate activities; 20) loan operations made in monetary form in return for a fee, for a certain period of time and under the promise of return: the national holding company; legal entities where 100% of the voting share belong to the national holding company. The list of the above legal entities shall be approved by the Government of the Republic of Kazakhstan. Article 249. Turnover from Land and Residential Buildings 1. The realisation of a residential building (part of a residential building) and (or) lease of the same, including a sublease, shall be exempt from value added tax, except for: 1) the realisation or lease of a residential building (part of a building) being used to provide hotel services; 173
2) 2.
the provision of hotel accommodation services.
Unless otherwise stipulated by this point, the transfer of a right to hold and (or) use, and (or) dispose of a land plot and (or) lease a land plot, including a sublease, shall be exempt from value added tax. The following shall not be exempt from value added tax: 1) 2) payment for transferring a land plot to park or store vehicles, and also other means of transport; a transfer of the right to hold and (or) use, and (or) dispose of a land plot occupied by a residential building (part of a residential building) used in hotel accommodation services; by a building (part of a building) that is not considered a residential building, and also to lease and sublease a land plot.
3.
Turnover from a realisation exempt from value added tax by this point shall be regarded as capital gains from the realisation of land plots in accordance with the procedure stipulated by article 87 of this Code.
Article 250. Financial Services 1. Turnover from the realisation of financial services shall be exempt from value added tax if the services have been stipulated by point 2 of this article. The following shall be regarded as financial services exempt from value added tax: 1) the following banking and other operations performed on the basis of a license from the authorised state body for the regulation and control of the financial market and financial organisations or the National Bank of the Republic of Kazakhstan by banks and organisations performing certain banking operations, and also operations performed by other legal entities without a license within the limits of their authority as established by legislative acts of the Republic of Kazakhstan to: accept deposits, opening and maintain individuals bank accounts; accept deposits, open and maintain legal entities bank accounts; open and maintain the correspondent accounts of banks and organisations performing certain banking operations; open and maintain individuals and legal entities metal accounts that record the physical quantity of affined precious metals and coins made from precious metals belonging to a particular individual; transfer operations; bank loan operations; cash operations; organise foreign currency exchange operations; accept payment documents for encashment (except for bills of exchange); open (issue) and confirm letters of credit, and fulfil any related liabilities; issue bank guarantees by banks that stipulate execution in monetary form; issue bank guarantees and other liabilities by banks for third parties that stipulate execution in monetary form;
2.
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factoring and forfeit operations performed by banks; 2) 3) operations with securities; the services of professional securities market participants, and also those persons performing professional activities on the securities market activities without a license in accordance with legislative acts of the Republic of Kazakhstan; operations with derivatives; insurance (reinsurance) operations, and also insurance broker (insurance agent) services to conclude and perform insurance (reinsurance) agreements; inter-bank clearing services; operations with payment cards, cheques, bills of exchange and deposit certificates; investment management services for pension assets, as well as for the assets of the state social insurance fund; the management of claims on mortgage loans;
4) 5)
6) 7) 8)
9)
10) the services of pension savings funds to raise pension contributions, distribute and credit investment income received from pension assets; 11) the realisation of participation interest in a companys charter capital; 12) operations to provide microcredit; 13) the provision of short-term loans by pawnshops under a pledge of movable property; 14) the following operations performed by credit partnerships for their participants: transfer operations: the execution of payment and money transfer instructions; loan operations: the provision of a monetary loan in return for a fee, for a certain period and under the promise of return; cash operations; open and maintain the bank accounts for the participants of credit partnerships; issue guarantees, instructions and other liabilities stipulating execution in monetary form, for the participants of a credit partnership; 15) operations with affined precious metals that do not involve their physical movement; 16) the assignment of loan claims. 3. When performing operations with securities, participation interest in any organisational or legal form of legal entity or in consortiums, realisation turnover shall be determined as capital gains from the realisation of securities, participation interest in any organisational or legal form of legal entity or consortium. A capital gains shall be defined in accordance with the procedure stipulated by article 87 of this Code.
Article 251. Property transferred to Financial Lease The transfer of property to financial lease shall be exempt from value added tax with respect to interest payable to a lessor, provided the following conditions have been met: 1) the transfer meets the requirements established by article 78 of this Code; 175
2)
the lessee purchases the property in the form of a tangible asset, investment in real estate or biological asset.
Article 252. Services provided by Non-Commercial Organisations Turnover from the realisation of services provided by the non-commercial organisations referred to in point 1 of article 134 of this Code shall be exempt from value added tax if the turnover relates to: 1) the provision of services to ensure the protection and social welfare of children, the elderly, war and labour veterans or the handicapped; rites and ceremonies performed by religious organisations or the realisation of religious articles.
2)
Article 253. Work and Services in the Fields of Culture, Science and Education Services and work in the fields of culture, science and education shall be exempt from value added tax, providing they relate to services and work: 1) to hold socially significant cultural events, cultural and mass interest events as part of the state order; performed by cultural organisations (except for business activities) theatres, orchestral halls, museums, libraries, cultural and leisure organisations; to organise educational events - pre-school education or teaching; nursery, primary, secondary or further (general) education; primary, secondary, higher or post-graduate (occupational) education; retraining or promotional qualifications performed by establishments with the appropriate licenses to conduct these types of activities; scientific research activities conducted within the framework of state purchase agreements; library services; the preservation, except for the distribution of information and propaganda, of historical or cultural artefacts entered in registers of historical and cultural artefacts or the state list of historical and cultural monuments in accordance with legislation of the Republic of Kazakhstan.
2)
3)
4) 5) 6)
Article 254. Goods and Services in the Field of Medical and Veterinary Activities 1. Turnover from the realisation of goods, work and services related to medical and veterinary practice shall be exempt from value added tax with respect to: 1) the realisation of medicines of all types, including all materials and components required for their manufacture; the realisation of items manufactured for medical or veterinary purposes, including orthopaedic items, equipment for the deaf and blind and medical (veterinary) machinery; all materials and components required for the production of medicines of all forms, including medical (veterinary) items as well as orthopaedic items, equipment for the deaf and blind and medical (veterinary) machinery; the provision of medical (veterinary) services, except for cosmetic and resort services.
2)
3) 2.
The list of goods and services referred to in point 1 of this article shall be approved by the Government of the Republic of Kazakhstan.
Article 255. Imports Exempt from Value Added Tax 1. Imports of the following goods shall be exempt from value added tax:
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1)
banknotes and coins of the national currency and foreign currency (except for banknotes and coins that have cultural and historical value), and also securities; goods by individuals according to the provisions for the duty free import of goods approved by the Government of the Republic of Kazakhstan; goods, except for excisable goods imported for humanitarian aid purposes in accordance with the procedure established by the Government of the Republic of Kazakhstan; goods, except for excisable goods imported for charitable aid purposes by countries, governments and international organisations, including the provision of technical assistance; goods imported for official use by foreign diplomatic or equivalent representations, and also for the personal use of diplomatic, administrative and technical personnel of these representatives, including family members residing with them and exempt in accordance with international treaties ratified by the Republic of Kazakhstan; goods subject to declaration in accordance with customs legislation of the Republic of Kazakhstan and under customs regimes establishing tax exemptions; all forms of medicines, including medicinal substances; medical (veterinary) items, including prosthetics and orthopaedic items, equipment for the deaf and blind and medical (veterinary) equipment; materials, equipment and components to produce all forms of medicines, including medical (veterinary) items, prosthetic items and medical (veterinary) equipment. A list of the items covered in this subpoint shall be approved by the Government of the Republic of Kazakhstan;
2)
3)
4)
5)
6)
7)
8) 9)
postage stamps (except those used in collections); raw materials for the production of banknotes by the National Bank of Kazakhstan and its organisations;
10) goods at the expense of grants provided by countries, governments and international organisations. 2. The procedure for exempting an import of the goods referred to in point 1 of this article from value added tax shall be established by the Government of the Republic of Kazakhstan.
Chapter 34. Offset of value added tax

Article 256. Value Added Tax Taken as an Offset 1. Unless otherwise stipulated by this chapter, when determining an amount of tax payable to the budget, the recipient of goods, work or services shall be entitled to offset value added tax payable for goods received, including tangible assets, intangible assets and biological assets; investment in real estate; work and services, where they are used or will be used to generate taxable turnover, and where the following conditions are met: 1) the recipient of the goods, work or services is a payer of value added tax in accordance with subpoint 1) of point 1 of article 228 of this Code; the supplier, which is a payer of value added tax at the date a tax invoice is issued, has issued a tax invoice or other document in accordance with point 2 of this article for goods, work or services realised in the Republic of Kazakhstan; in the case of an import of goods, value added tax is paid to the budget and is non-refundable in accordance with the conditions of a customs regime;
2)
3)
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4)
in the cases stipulated by article 241 of this Code - where a tax obligation to pay value added tax has been fulfilled; when the persons referred to in subpoint 1) of point 1 of article 228 of this Code are registered for value added tax purposes, the persons shall be entitled to offset value added tax on the balance of goods (including tangible assets, intangible and biological assets, investment in real estate) at the date of registration for value added tax purposes.
5)
2.
The amount of value added tax offset in accordance with point 1 of this article shall be the tax: 1) payable to suppliers on tax invoices issued with a special line for value added tax, except for those cases stipulated by subpoints 2)-4) of this point; payable on tax invoices issued in accordance with point 10 of article 263 of this Code under a financial lease agreement (except for a lease-back agreement), but no more than the tax due on the lessors taxable turnover as determined on the completion date of turnover in accordance with point 10 of article 238 of this Code; payable on tax invoices issued in accordance with point 10 of article 263 of this Code under a lease-back agreement; payable on tax invoices issued in accordance with point 11 of article 263 of this Code with respect to the part of the amount due on the value of periodicals and other products of the mass media in the reporting tax period; indicated in a freight customs declaration drawn up in accordance with customs legislation of the Republic of Kazakhstan and paid to the budget of the Republic of Kazakhstan in accordance with the established procedure, and non-refundable in accordance with the conditions of the customs regime; indicated in a payment document or document issued by a tax body confirming payment of value added tax in accordance with article 241 of this Code; indicated in a separate line in a railway or air ticket, with the taxpayer carriers identification number indicated in the ticket; indicated in a separate line in an electronic air ticket, with the taxpayer carriers registration number, provided the following are available: a boarding card; a document confirming the cost of the electronic ticket has been paid; 9) indicated in documents used by utilities suppliers, where payment is made by direct debit;
2)
3)
4)
5)
6)
7)
8)
10) in those cases stipulated by subpoint 5) of point 1 of this article the tax indicated in a residual inventory list compiled on the date of registration for value added tax purposes, provided it is confirmed in accordance with the relevant subpoints of this point; 11) indicated in a document used to release goods from the state material reserve, issued by the authorised body for state material reserves in the format established by legislation of the Republic of Kazakhstan, taking into account the provisions of this subpoint. The document above: for goods that create non-taxable turnover after realisation should record Exclusive of VAT; for all remaining goods the document should record value added tax up to the value of tax paid when the goods in question were supplied to the state material reserve, which was determined as if the value of the goods for release included value added tax at the rate valid at the release date.
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3.
Unless otherwise stipulated by point 4 of this article, value added tax shall be offset in the same tax period in which goods, work or services are received, in accordance with the procedure established by point 2 of this article. If value added tax is paid in accordance with article 241 of this Code, the tax paid shall be offset in the same tax period in which the obligation to pay value added tax was fulfilled. For goods used for thee purposes of taxable turnover, and which had been previously purchased for the purpose of exempt turnover, value added tax shall be offset in the same tax period in which they were used for the purposes of taxable turnover.
4.
If tax invoices are issued after the completion date of turnover from the realisation of the goods, work or services as stipulated by point 7 of article 263 of this Code, value added tax shall be offset in the same tax period for which the tax invoice was issued. Where a payer of value added tax has both taxable and non-taxable turnover, including turnover exempt from value added tax, value added tax shall be offset in accordance with the procedure stipulated by article 260 of this Code.
5.
Article 257. Value Added Tax not Subject to Offset 1. Value added tax shall not be offset if it is payable in connection with the receipt of: 1) 2) 3) 4) 2. goods, work or services not used for the purposes of taxable turnover; buildings in the housing fund, except for buildings used as hotels; vehicles purchased as tangible assets; goods, work or services used to repair buildings leased in the housing fund.
When property (goods, work, services) is received free of charge, the person receiving the property shall not offset the value added tax payable by the person that transferred the property free of charge.
Article 258. Adjustments to Value Added Tax offset 1. Value added tax previously offset shall be disallowed in the following cases: 1) on goods, work or services not used for the purposes of generating taxable turnover, except for those used to generate non-taxable turnover for which reasons a taxpayer applies the proportional method in accordance with articles 260 and 261 of this Code; on goods that are damaged or lost (except for those cases arising as a result of emergencies); where excess losses are sustained by natural monopolies; where the provisions of article 263 of this Code have not been observed; on transactions with a taxpayer recognised as fictitious on the basis of a valid court verdict or resolution; on a transaction(s) recognised by a court as having been committed by a business without any intention of conducting business activities; on property transferred as a contribution to charter capital; those stipulated by point 2 of article 239 of this Code.
2) 3) 4) 5)
6)
7) 8) 2.
For the purposes of this article, damage to goods shall mean the deterioration of all or specific properties (qualities) of a good as a result of which the goods may not be used to generate taxable 179
turnover. The loss of goods shall be understood as an event which leads to the destruction or loss of the goods. Damage to goods incurred by a taxpayer through natural deterioration, as established in legislation of the Republic of Kazakhstan, shall not constitute the loss of goods. 3. Value added tax previously offset shall be adjusted in the same tax period in which the events described in points 1 and 2 of this Code occurred. In those cases established by this point, value added tax shall be adjusted in accordance with the following procedure: 1) for inventories, the adjustment shall be determined by applying the rate of value added tax valid at the date the adjustment is made to the book value of inventories at that date; for tangible assets, intangible and biological assets and investment in real estate, a value added tax offset shall be disallowed at the rate valid at the date assets were purchased in proportion to the amount due on their book value exclusive of the adjustment and impairment.
4.
2)
5.
The adjustment stipulated by this article shall not be made in those cases referred to in point 3 of article 231 of this Code, except for the case referred to in subpoint 1) of point 3 of article 231 of this Code.
Article 259. Adjustments of Value Added Tax Offset with respect to Doubtful Debts when Liabilities have been written off 1. If a part of or an entire liability on purchased goods, work or services are recognised as doubtful in accordance with the provisions of this Code, then any value added tax already offset on these goods, work or services and corresponding to the doubtful debt shall be disallowed at the end of three years from the moment the liability arose, except for value added tax offset under subpoints 3) and 4) of point 1 of article 256 of this Code. If, after a value added tax offset has been disallowed, a payer of value added tax makes a payment for goods, work or services, the tax on the said goods, work or services shall be re-instated as an offset in the same tax period in which the payment was made. When a liability, except for liabilities that have been adjusted in accordance with point 1 of this article, is written off, value added tax already offset on goods, work and services shall be disallowed in the same period in which the cases referred to in point 1 of article 88 of this Code arose. Where a supplier-payer of value added tax is declared bankrupt, value added tax already offset, except for value added tax that has been adjusted in accordance with point 1 of this article, shall be disallowed in the tax period in which the justice bodies removed the bankrupt supplier-payer of value added tax from the state register of legal entities.
2.
3.
4.
Article 260. Procedure for offsetting Value Added Tax from Realisation Turnover not Subject to Value Added Tax 1. For goods, work or services being used to generate non-taxable turnover, value added tax payable to suppliers and on imports shall not be offset. When generating taxable and non-taxable turnover, value added tax shall be offset according to either the proportional or separate method at the discretion of a payer of value added tax. The method chosen to offset value added tax may not be changed during the calendar year. 3. Value added tax not subject to offset in accordance with this article shall be deducted when determining taxable income in accordance with the procedure established in this Code.
2.
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Article 261. Proportional Method According to the proportional method, value added tax to be offset shall be determined based on the proportion of taxable turnover in total turnover. Article 262. Separate method 1. To determine value added tax offset using the separate method, a payer of value added tax shall keep a separate record of expenses and value added tax on goods, work or services received and used to generate taxable and non-taxable turnover. Banks and organisations performing certain banking operations and micro credit organisations that use the proportional offset method shall be entitled to apply the separate method to account for value added tax on turnover from the receipt and realisation of pledged property (goods). When property is transferred to financial lease, a lessor using the proportional offset method shall be entitled to apply the separate method to record value added tax on turnover from the transfer of property to financial lease. A lessors expenses related to the purchase of property to be transferred to financial lease shall be regarded as expenses incurred for taxable turnover purposes.
2.
3.
4.
Chapter 35. Tax invoices

Article 263. Tax Invoices 1. A tax invoice shall be an obligatory document for all payers of value added tax, unless otherwise stipulated by this article. A payer of value added tax realising goods, work or services subject to value added tax, shall be obliged to issue the person receiving the goods, work or services in question with a tax invoice inclusive of value added tax, unless otherwise stipulated by this article. A payer of value added tax shall indicate the following in a tax invoice: 1) 4. 5. for turnover subject to value added tax an amount of value added tax;
2.
3.
for turnover exempt from value added tax a note stating Exclusive of VAT. If a supplier is not a payer of value added tax in accordance with subpoint 1) of point 1 of article 228 of this Code, a tax invoice or other document provided in accordance with point 2 of article 256 of this Code shall be issued with the note Exclusive of VAT. A tax invoice that is the basis for offsetting value added tax in accordance with article 256 of this Code should indicate the following: 1) 2) 3) a tax invoice number containing only digits; the date the tax invoice was drawn up; the surname, name and patronymic (if applicable) or full name, address of the supplier and recipient of goods, work or services, and in those cases stipulated by point 18 of this article, the suppliers status principal or agent; the identification number of the supplier and recipient of goods, work or services; the number of the suppliers value added tax registration certificate; the name of the realised goods, work or services;
6.
4) 5) 6)
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7) 8) 9) 10) 7.
the size of taxable turnover; the rate of value added tax; the amount of value added tax; the value of goods, work or services, inclusive of value added tax.
If excisable goods are being realised, a tax invoice should also indicate the relevant amount of excise duty. If goods, work or services are being realised according to a commission agreement, a tax invoice shall be issued indicating the status of the supplier: principal if a tax invoice is being issued by a principal to an agent; agent if a tax invoice is being issued by an agent to the purchaser of goods, work or services.
8.
Unless otherwise stipulated in this article, tax invoices shall be written out no earlier than the completion date of realisation turnover and no later than five days from the completion date of realisation turnover. Taxpayers realising electricity, water, gas, communication services, public utilities, railway transportation, freight forwarding services, banking transactions that are subject to value added tax, shall be entitled to issue tax invoices if such a realisation is made for the calendar month, on or before the 20th of the month following the month for which the tax invoice is being issued. If goods are being exported under the export regime, a tax invoice shall be issued no later than the completion date of realisation turnover.
9.
A tax invoice shall be certified by the signatures of the suppliers manager and chief accountant or by an authorised employee, and also by the taxpayers stamp, except for those cases when a taxpayer does not have a stamp for the reasons stipulated by legislation of the Republic of Kazakhstan.
10. Unless otherwise stipulated in this article, a tax invoice should show the taxable turnover for each item of goods, work or services separately. Total turnover may be indicated, provided that a document is attached to the tax invoice containing the data referred to in subpoints 6)-10) of point 5 of this article. In this respect, a tax invoice should contain the number, date and name of the accompanying document. 11. A tax invoice issued by a lessor for an object it is transferring to financial lease shall indicate the size of taxable turnover based on total lease payments in accordance with a financial lease agreement excluding interest and value added tax. 12. In the event of a realisation of periodicals and other products of the mass media, including those on a website on public telecommunications networks, a tax invoice shall be issued no later than five days after the completion date of realisation turnover. 13. The value of goods, work or services and value added tax in a tax invoice shall be indicated in the national currency of the Republic of Kazakhstan, except for those cases where goods, work or services are realised under foreign trade contracts, and also those cases stipulated by legislative acts of the Republic of Kazakhstan. 14. Two copies of a tax invoice shall be issued, one of which shall be transferred to the recipient of goods, work or services. 15. If amendments and (or) additions need to be made to an already issued tax invoice that do not involve a change in the supplier and (or) purchaser of goods, work or services to correct errors, the previously issued tax invoice shall be annulled and a corrected tax invoice issued. This point shall not apply in those cases stipulated by article 265 of this Code.
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16. Tax invoices shall not be required in the following cases: 1) where settlements are made for the provision of public utilities or public communications services through banks using primary accounting documents that serve as the basis for accounting records; 2) where tickets are issued for the conveyance of passengers, including electronic tickets; 3) from the sale of goods, work or services using automated teller machines with a fiscal memory and that issue a receipt; 4) where the services stipulated by article 250 are provided. 17. When an amount of value added tax cannot be offset in accordance with subpoint 8) of point 2 of article 256 of this Code, a payer of value added tax shall be entitled to request that the supplier issue a tax invoice. In this case the supplier shall be obliged to follow the request taking into account the provisions of this article. 18. The specific nature of tax invoices following a realisation (purchase) under agreements on joint activities has been established by article 235 of this Code. 19. An agent shall be responsible for issuing tax invoices to purchasers of goods, work or services realised according to a commission agreement. Turnover from the realisation of goods, work or services in a tax invoice issued by an agent be based on the value of the goods, work or services that the agent realised to the purchaser. A tax invoice shall be issued by an agent, and should include the data: from a tax invoice issued to an agent by a principal that is a payer of value added tax. In this case the amount of taxable (non-taxable) turnover recorded in a tax invoice issued to an agent by a principal shall by included in taxable (non-taxable) turnover in a tax invoice issued by a principal to a purchaser; a document confirming the value of goods, work or services and issued by a principal that is not a payer of value added tax. In this case the value of goods, work or services recorded in this type of document shall be included in non-taxable turnover in a tax invoice issued by an agent to a purchaser. The size of taxable turnover in a tax invoice issued by a principal to an agent shall be recorded according to the value of goods, work or services at which they are provided to an agent for realisation purposes. The size of taxable turnover in a tax invoice issued by an agent to a principal shall be based on the agents commission. Article 264. Special Considerations for Freight Forwarding Agents to issue Tax Invoices 1. A forwarding agent shall issue tax invoices to transport freight for senders or recipients of freight if the transportation in question is made in accordance with a freight forwarding agreement. A forwarding agent shall issue a tax invoice on the basis of tax invoices issued by hauliers and other suppliers of work or services that are payers of value added tax within the framework of a freight forwarding agreement concluded between the freight forwarder and freight sender or recipient. If a haulier (supplier) is not a payer of value added tax a freight forwarder shall issue a tax invoice based on a document confirming the value of work or services. 2. The size of taxable turnover in a tax invoice issued by a freight forwarder shall include the value of work and services provided by hauliers and (or) suppliers within the framework of a freight forwarding agreement.
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A tax invoice shall show turnover that includes the value of work or services performed by hauliers and (or) suppliers that are: payers of value added tax; not payers of value added tax. Any interest included in a freight forwarders taxable turnover should have a separate line in a tax invoice. 3. A freight forwarder shall compile two copies of a tax invoice. The first copy of a tax invoice shall be transferred to the sender or recipient of freight. A document disclosing information on hauliers and (or) suppliers of work or services provided within the framework of a freight forwarding agreement, as well as their value, shall be attached to the second copy of a tax invoice, which in turn shall remain with the freight forwarder. The document attached to a tax invoice should record the following information: 1) a sequential invoice number and the date the tax invoice of the haulier and (or) supplier of work and services was drawn up; the identification number of a taxpayer haulier and (or) supplier of goods or services; the surname, name and patronymic (if applicable) or full name of the haulier and (or) supplier of work and services; the series and number of a value added tax registration certificate if the haulier and (or) supplier are payers of value added tax; the value of work and services performed by the haulier and (or) supplier of work and services that is included in the taxable turnover indicated in a tax invoice. The value of work and services performed by a haulier and (or) supplier that are not payers of value added tax shall be indicated separately.
2) 3)
4)
5)
4. A tax invoice issued in accordance with the above requirements shall be considered grounds for senders or recipients of freight to offset value added tax. Article 265. Preparation of Tax Invoices Following an Adjustment to Taxable Turnover 1. Additional invoices shall be prepared when an adjustment is made to taxable turnover in accordance with article 239 of this Code, and shall indicate: 1) the number of an additional tax invoice, which should contain only digits, and the date it was compiled; the sequential number and issue date of the tax invoice to which an additional tax invoice was attached; the name, address and identification number of the supplier and recipient of goods, work or services; the size of the adjustment to taxable turnover exclusive of value added tax; the adjusted amount of value added tax.
2)
3)
4) 5) 2.
Additional tax invoices shall be prepared by a supplier of goods, work or services and confirmed by the recipient of the goods, work or services in question.
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Article 266. Value Added Tax payable to the Budget on Taxable Turnover Value added tax payable to the budget on taxable turnover shall be recognised as the difference between value added tax accrued on taxable turnover in accordance with article 268 of this Code, and tax offset in accordance with article 256 of this Code. Article 267. Procedure for paying Value Added Tax in Specific Cases 1. Organisations processing agricultural raw materials shall pay value added tax in accordance with the procedure established by point 3 of this article. For the purposes of this article organisations that simultaneously meet the following conditions shall be regarded as organisations processing agricultural raw materials: 1) where no less than 90% of their aggregate annual income is comprised of income receivable (already received) as a result of performing the following types of activities, except for catering activities: producing meat and meat products; processing and conserving fruit and vegetables; producing vegetable and animal oils and fats; processing milk and producing cheese; producing flour and cereals; producing ready animal food; producing bread; producing childrens food and diet food products; producing starch products; 2) 3) 3. 4. that do not apply special tax regimes, except the special tax regime small businesses; that do not perform activities to produce, process and realise excisable products.
2.
Value added tax calculated in accordance with article 244 of this Code shall be reduced by 70%. Payers of value added tax applying the special tax regime for legal entity agricultural manufacturers and rural consumer cooperatives shall calculate value added tax taking into account the special considerations established by article 451 of this Code.
Article 268. Rates of Value Added Tax 1. Unless otherwise established by this article the value added tax rate shall be 12% and applied to taxable turnover and taxable imports. A zero rate of value added tax shall be applied to turnover from the realisation of the goods, work or services referred to in articles 242-245 of this Code. If turnover from the realisation of goods and services taxed at the zero rate is not confirmed in accordance with articles 243-245 of this Code, the turnover in question on the realisation of goods and services shall be subject to value added tax at the rate referred to in point 1 of this article.
2.
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3.
When individuals import goods in accordance with the simplified procedure, value added tax may be paid as the total customs payment as determined by customs legislation of the Republic of Kazakhstan.
Article 269. Tax Period 1. The tax period for value added tax shall be the calendar quarter.
Article 270. Tax Declaration 1. A payer of value added tax should file a value added tax declaration with the tax body at its location for each tax period on or before the 15th of the second month following the reporting tax period. 2. Registers of tax invoices for goods, work or services purchased and realised during the tax period shall be filed together with a value added tax declaration as an attachment to the declaration. The format of the register of tax invoices shall be established by the authorised body. 3. In those cases stipulated by subpoint 11) of point 2 of article 256 of this Code, the authorised state body for state material reserves shall provide a register of documents issued to release goods from the state material reserve in accordance with the procedure, within the deadline and in the format established by the authorised body. Article 271. Deadline for the Payment of Value Added Tax 1. A payer of value added tax should pay tax to the budget in its location for each tax period on or before the 25th of the second month following reporting tax period. Value added tax on imported goods shall be paid on the day determined by customs legislation of the Republic of Kazakhstan for making customs payments.
2.
Chapter 37. Mutual relations with the budget with respect to value added tax
Article 272. Refund of Value Added Tax 1. Unless otherwise established by this chapter a taxpayer shall receive a refund from the budget: 1) if cumulative value added tax offset exceeds accrued tax according to a declaration at the end of the reporting tax period (hereafter excess value added tax), in accordance with the period established by articles 273 and 274 of this Code. The excess value added tax referred to in part 1 of this subpoint which arose due to a purchase of goods, work and services not used to create turnover taxed at the zero rate shall be refunded within the limits of value added tax offset: paid on an import of goods; paid when purchasing work and services from a non-resident that is not a payer of value added tax in the Republic of Kazakhstan, and which does not operate through a branch or representative office, in accordance with article 241 of this Code; with respect to commissioned tangible assets and investment in real estate; purchased biological assets available at the end of the tax period for which a value added tax declaration has been filed requesting a refund of excess value added tax. Part two of this subpoint shall not extend to taxpayers entitled to apply the simplified procedure for refunding excess value added tax as stipulated by article 274 of this Code; 2) value added tax paid to suppliers of goods, work and services purchased grants, in accordance with the procedure established by article 275 of this Code; 186
3)
value added tax paid by diplomatic or equivalent representations accredited in the Republic of Kazakhstan; the diplomatic, administrative and technical personnel of these representatives, including family members residing with them, to the suppliers of goods, work and services purchased in the Republic of Kazakhstan in accordance with the procedure established by article 276 of this Code; excess value added tax paid to the budget in accordance with the procedure established by articles 599 and 602 of this Code.
4)
3.
The excess value added tax referred to in part 1 of subpoint 1) of point 1 of this article on goods, work and services purchased before 1 January 2009, except for any excess arising from the purchase of goods, work and services used or that will be used to generate turnover taxable at the zero rate, shall not be refundable from the budget. Excess value added tax that is not refundable from the budget in accordance with this point shall be credited against future value added tax payments. An offset shall not be made against value added tax payable on an import and the value added tax stipulated by article 241 of this Code.
4.
For turnover taxable at the zero rate, value added tax offset in excess of accrued income in a declaration at the end of the reporting tax period shall be refunded if the following conditions have been met simultaneously: 1) the payer of value added tax makes continuous realisations of goods, work and services taxable at the zero rate; realisation turnover taxable at the zero rate for a tax period in which turnover taxable at the zero rate has been concluded, and where excess value added tax has been claimed for refund in a declaration, amounted to at least 70% of total taxable realisation turnover.
2)
4.
The Government of the Republic of Kazakhstan shall establish the criteria for treating a realisation of goods, work or services taxable at the zero rate as a continuous realisation as stipulated by subpoint 1) of point 3 of this article, and the procedure for determining excess value added tax for refund: 1) which is related to turnover taxable at the zero rate in the event the conditions established by point 3 of this article are not met; which is stipulated by part 2 of subpoint 1) of point 1 of this article.
2)
Article 273. Refund of Excess Value Added Tax 1. Excess value added tax shall be returned to a taxpayer: 1) in accordance with the procedure and within the deadline established by this article, unless otherwise established by article 274 of this Code; on the basis of the taxpayers request for a refund made in a value added tax declaration for the tax period.
2)
2.
If a payer of value added tax has not requested a refund for excess value added tax in a value added tax declaration for the tax period, the excess in question shall be credited against future payments of value added tax or may be claimed for refund. In this respect a payer of value added tax shall be entitled to a refund of excess value added tax generated after 1 January 2009 during the statute of limitation set by article 46 of this Code.
3.
Unless established by point 4 of this article and article 274 of this Code, excess value added tax confirmed by a tax audit shall be refunded within 180 calendar days from the date a value added tax declaration is filed for the tax period in which refund request was made. For the purposes of this point, the grounds for a refund of excess value added tax shall be:
187
1) 2) 3)
an act of tax audit confirming the accuracy of excess value added tax claimed for refund; the tax audit opinion drawn up in the case stipulated by point 10 of article 635 of this Code; documents confirming turnover taxable at the zero rate in accordance with articles 243-245 of this Code, provided turnover taxable at the zero rate has been generated.
4.
A payer of value added tax generating turnover taxable at the zero rate that makes up no less than 70% of total taxable realisation turnover for the tax period, except for the turnover referred to in point 2 of article 274 of this Code, shall receive a refund within 60 working days from when the value added tax declaration incorporating the refund request was made. For the purposes of this point the grounds for a refund of excess value added tax shall be: 1) 2) an act of tax audit confirming the accuracy of excess value added tax claimed for refund; documents confirming turnover taxable at the zero rate in accordance with articles 243-245 of this Code; a tax audit opinion drawn up in the case stipulated by point 10 of article 635 of this Code.
3) 5.
Excess value added tax shall not be refunded to: 1) taxpayers making budget settlements under special tax regimes established for: small businesses; farms or farm holdings; legal entity agricultural manufacturers and rural consumer cooperatives; 2) taxpayers applying the provisions of article 267 of this Code.
6.
Excess value added tax subject to refund from the budget shall be refunded to a taxpayer in accordance with the procedure established by article 603 of this Code. Excess value added tax not subject to a refund from the budget shall be credited against future value added tax payments. An offset shall not be made against value added tax payable on an import and also stipulated by article 241 of this Code.
7.
Excess value added tax that a taxpayer has requested for refund in a declaration, and which has been refunded from the budget and not confirmed during a documentary tax audit shall be payable to the budget by the taxpayer on the basis of a notification of tax audit results. If a taxpayers refund of excess value added tax made earlier included late payment interest in favour of the taxpayer in question in accordance with point 4 of article 603 of this Code, the late payment interest transferred to the taxpayer and due on refunded excess value added tax not confirmed in a tax audit shall be payable to the budget on the basis of a notification of tax audit results.
8.
The amounts referred to in point 7 of this article shall be payable to the budget inclusive of late payment interest as indicated in point 4 of article 603 of this Code, for each day from the day the amounts were transferred to the taxpayer.
Article 274. Simplified Procedure for the Refund of Excess Value Added Tax 1. The simplified procedure for refunding excess value added tax shall involve refunding value added tax without a preliminary tax audit.
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2.
The following payers of value added tax shall be entitled to apply the simplified procedure for refunding excess value added tax if they have filed a value added tax declaration indicating a request to refund excess value added tax: 1) that have been undergoing major taxpayer monitoring for the last 12 consecutive months and who have no outstanding obligations to file tax reporting as at the date a value added tax declaration is filed indicating a request to refund excess value added tax. Following a reorganisation by division or spin-off; the reformation of a major taxpayer subject to monitoring that meets the requirements stipulated by this subpoint, the right to apply the simplified procedure for refunding excess value added tax shall transfer to the legal successor(s) of the reorganised entity. Following the merger or combination of major taxpayers subject to monitoring that meet the requirements stipulated by this subpoint, the right to apply the simplified procedure for refunding excess value added tax shall transfer to the legal successor provided that all legal entities to be reorganised under the merger or combination were major taxpayers subject to monitoring before the reorganisation. The right to apply the simplified procedure for refunding excess value added tax in relation to a legal successor(s) referred to in paragraphs 2 and 3 of this subpoint shall remain in force until a new list of major taxpayers subject to monitoring enters into force; 2) a person for which discrepancies were not discovered between data recorded in its value added tax reporting and in the value added tax reporting for its direct suppliers and clients. The provisions of this subpoint shall apply if a taxpayer has no overdue tax reporting at the date for filing a value added tax declaration. The provisions of this subpoint shall not apply to the persons referred to in subpoint 1) of point 2 of this article; 3) those persons that by virtue of applying a risk management system are not treated as a risk which would not allow them to apply the simplified procedure stipulated by this article.
3.
Excess value added tax shall be refunded according to the simplified procedure within the following deadlines: 1) within 15 working days from the last date established by this Code (inclusive of extensions) for filing a value added tax declaration with a tax body for the tax period in which a request to refund excess value added tax was made, - for the payers of value added tax referred to in subpoint 1) of point 2 of this article; no later than 45 working days from the last date established for filing a value added tax declaration for the tax period in which a request for a refund of excess value added tax was made, - to the payers of value added tax referred to in subpoint 2) of point 2 of this article, unless otherwise established by this subpoint. If a value added tax declaration is overdue, excess value added tax shall be refunded to the payers listed in subpoint 2) of point 2 of this article by no later than 45 working days from the deadline to file a value added tax declaration for the tax period in which a request to refund excess value added tax was made; 3) within 30 working days from the date a value added tax declaration was filed with a tax body for the tax period in which a request was made to refund excess value added tax, - to the payers of value added tax referred to in subpoint 3) of point 2 of this article.
2)
Article 275. Refund of Value Added Tax paid for Goods, Work or Services purchased using a Grant 1. Value added tax paid on goods, work or services purchased using grant funds shall be refunded to:
189
1)
a grant recipient - state body that is a beneficiary in accordance with an international treaty on the provision of a grant to the Republic of Kazakhstan and the appointed executive, unless otherwise stipulated by the international treat of the Republic of Kazakhstan in question; an executive entity appointed by the grant recipient to realise the grant (hereafter executive).
2)
2.
The tax bodies shall refund the value added tax stipulated by point 1 of this article and paid to suppliers of goods, work or services purchased using grant funds within 30 working days from the date a tax application was filed for a refund of value added tax paid on goods, work or services purchased using grant funds, providing the following conditions have been met simultaneously: 1) grants used to purchase goods, work or services are provided by countries, governments or international organisations; goods, work or services are purchased exclusively for the purposes for which the grant has been provided; goods are realised, work performed and services provided in accordance with an agreement (contract) concluded with the grant provider or executive appointed by the grant provider to execute grant objectives.
2)
3)
3.
Value added tax shall be refunded in accordance with this article to grant recipients or executive in accordance with the procedure stipulated by points articles 599 and 604 of this Code, on the basis of documents confirming the payment of value added tax from grant funds. To refund value added tax in accordance with this article in addition to a tax application for a refund of value added tax paid on goods, work or services purchased using grant funds, the grant recipient or executive should file the following documents to the tax body at its location: 1) a copy of an agreement on the provision of a grant between the Republic of Kazakhstan and a foreign country, government of a foreign country or international organisation included in a list approved by the Government of the Republic of Kazakhstan; a copy of an agreement (contract) concluded between a grant recipient or executive and a supplier of goods, work or services; a copy of a document confirming the appointment of an executive as such at the moment an application is made to a refund of value added tax; documents confirming the shipment and receipt of goods, work or services; a tax invoice issued by a supplier that is a payer of value added tax, with the amount of value added tax given a separate line; way bills and consignment notes; a document confirming the receipt of goods by the authorised official or executive of a grant recipient; duly drawn up acts for work or services accepted by a grant recipient or executive; documents confirming payment for goods, work or services received, including payment of value tax. Value added tax stipulated by this article shall also be refunded to grant recipients or executives who are not payers of value added tax.
4.
2)
3)
4) 5)
6) 7)
8) 9)
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Article 276. Value Added Tax Refund to Diplomatic or Equivalent Representations accredited in the Republic of Kazakhstan, and to their Personnel 1. Value added tax shall be refunded to diplomatic or equivalent representations accredited in the Republic of Kazakhstan (hereafter representations), and to persons recognised as diplomatic, administrative and technical personnel, including their family members residing with them (hereafter personnel) for goods purchased, work performed and services provided in the Republic of Kazakhstan provided that the refund is stipulated by international treaties of which the Republic of Kazakhstan is a party, or documents confirming the principle reciprocity in the provision of value added tax concessions. Value added tax shall be refunded by the tax bodies at the location of the representations included in a list approved by the Ministry of Foreign Affairs of the Republic of Kazakhstan. 2. Restrictions in the size and conditions of value added tax refunds may be established in relation to certain representations based on the principle of reciprocity. A list of representations subject to restricted value added tax refunds shall be approved by the Ministry of Foreign Affairs of the Republic of Kazakhstan in agreement with the authorised state body. 3. Unless otherwise established by point 2 of this article, value added tax shall be refunded to representations provided that the value of goods purchased, work performed or services provided, inclusive of value added tax, in each separate tax invoice issued in accordance with the procedure established by this Code, and in documents confirming payment, amount to or exceed 8 times the minimum calculation index set by the law on the state budget for the relevant financial year. The restrictions established by this point shall not cover payment for communication, electricity, water, gas and other utilities services. 4. The tax bodies shall refund value added tax on the basis of lists (registers) compiled by representations and copies of documents confirming the payment of value added tax (tax invoices issued in accordance with the procedure established by this Code; documents confirming payment). Copies of accreditation documents issued by the Ministry of Foreign Affairs of the Republic of Kazakhstan shall be filed for the personnel of representations. Lists (registers) on goods purchased, work performed and services provided during a specific reporting quarter shall be compiled by representations every quarter in hard copy and in the format established by the authorised body; stamped and signed by the manager of the representation or by an individual authorised to do so. Lists (registers) compiled by representations shall be transferred to the Ministry of Foreign Affairs of the Republic of Kazakhstan together with copies of documents confirming payment of value added tax (tax invoices issued in accordance with the procedure established by this Code; documents confirming payment) during the month following the reporting quarter, except for those cases when the period of stay in the Republic of Kazakhstan of a member(s) of a representations personnel comes to an end. 5. After confirming the principle of reciprocity, the Ministry of Foreign Affairs of the Republic of Kazakhstan shall forward the lists (registers) to the tax body at the location of the representations accredited in the Republic of Kazakhstan together with an accompanying document, as well as copies of documents confirming the payment of value added tax (tax invoices issued in accordance with the procedure established by this Code; documents confirming payment). The tax bodies shall refund value added tax to representations within 30 working days from recorded receipt from the Ministry of Foreign Affairs of the Republic of Kazakhstan of lists (registers) and documents confirming payment of value added tax.
6.
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After checking lists (registers) and copies of documents confirming payment of value tax the tax bodies shall notify the Ministry of Foreign Affairs of the Republic of Kazakhstan of its decision to refund and (or) refuse to refund value added tax. If the tax bodies refuse a refund of value added tax, they shall notify the interested parties of the breaches that led to the refusal and any related documents. 7. If breaches have been discovered in documents filed by representations, including a failure to record value added tax in a separate line, the tax bodies shall conduct a cross-check audit of the supplier of goods, work or services. If breaches discovered during a cross-check audit are not eliminated during the refund period established by point 6 of this article, value added tax shall be refunded within the amounts for which no breaches were discovered. If violations are eliminated after a cross-check audit has been completed, value added tax shall be refunded within 12 months after the tax period in which goods were purchased, work performed and services provided, based on an additional list (register) filed together with copies of documents confirming payment of value added tax (tax invoices issued in accordance with the procedure established by this Code; documents confirming payment). An amount of value added tax not claimed for refund during the quarter in which goods were purchased, work performed and services provided may be claimed for refund by representations within a 12-month period after the tax period in which the goods were purchased, work performed or services provided based on a list (register) filed together with copies of documents confirming payment of value added tax (tax invoices issued in accordance with the procedure established by this Code; documents confirming payment). 8. Representations shall send documents to the tax bodies in Kazakh and (or) Russian. If specific documents have been compiled in foreign languages translations into Kazakh and (or) Russian and certified by the representations stamp shall be filed. 9. The tax bodies shall refund value added tax to the appropriate accounts of the representations and (or) personnel opened in banks of the Republic of Kazakhstan in accordance with the procedure established by legislation of the Republic of Kazakhstan.
Section 9. Excise duties Chapter 38. General provisions

Article 277. Application of Excise Duty Excise duty shall be levied on the goods produced in the Republic of Kazakhstan or imported into the Republic of Kazakhstan as listed in article 279 of this Code. Article 278. Payers 1. Payers of excise duty shall be individuals and legal entities that: 1) 2) 3) produce excisable goods in the Republic of Kazakhstan; import excisable goods into the customs territory of the Republic of Kazakhstan; carry out the wholesale and retail realisation of gasoline (except for aviation fuel) and diesel in the Republic of Kazakhstan; realise the confiscated and ownerless excisable goods; excisable goods inherited by the state or transferred to state ownership free of charge in the Republic of Kazakhstan and listed in 192
4)
subpoints 5)-7) of article 279 of this article, unless excise duty have been paid in respect of those goods in the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan; 5) realise excisable goods in the form of bankruptcy estate as listed in article 279, unless excise duty have been paid in respect of those goods in the Republic of Kazakhstan in accordance with legislation of the Republic of Kazakhstan.
2.
Taking into account the provisions of point 1 of this article, payers of excise duty shall also include non-resident legal entities and their structural subdivisions. Authorised state bodies realising confiscated and ownerless excisable goods; excisable goods inherited by the state or transferred to state ownership free of charge in the Republic of Kazakhstan listed in subpoints 5)-7) of article 279 of this Code shall not be payers of excise duty.
3.
Article 279. List of Excisable Goods 1. The following shall be considered excisable goods: 1) 2) 3) 4) 5) 6) all types of alcohol; alcoholic products; beer containing no more than 0.5% spirit; tobacco products; gasoline (excluding aviation fuel), diesel fuel; motor vehicles (except for manually operated motor vehicles specially designed for handicapped individuals); crude oil, gas condensate.
7)
Article 280. Excise Duty Rates 1. Excise duty rates shall be set as a percentage (ad valorem rates) of the value of a good and (or) as an absolute amount per unit of measurement in physical terms (fixed rates). Excise duty rates for alcoholic products shall be approved in accordance with point 1 of this article subject to the content by volume of anhydrous alcohol in them. Excise duty rates for all types of spirit and wine materials shall vary depending on the further use of the spirit and wine materials. Excise duty rates for spirit and wine materials realised to produce alcoholic products may be set lower than the base rate for spirit and wine materials realised to persons not using them to produce alcoholic products. 4. Excise duty shall be calculated: 1) No. for the excisable goods referred to in subpoints 1)-4), 6) and 7) of article 279 of this Code: TN VED EurAsEc code 2 From 2207 Types of excisable goods Excise duty rates (tenge per unit of measurement) 4 600 tenge/litre 193
2.
3.
1 1
3 80% or more per volume non-methylated spirit;
ethanol and other types of non-methylated spirit of any concentration (except for spirit realised to produce alcoholic products, medicinal products, and also released to state medical institutions within the established quotas) 2 From 2207 Non-methylated fuel ethanol (non-colourless or dyed for consumption on the domestic market) Non-methylated spirit less than 80% per volume; alcoholic liqueurs and other alcoholic drinks (except for spirit realised to produce alcoholic products, medicinal products, and also released to state medical institutions within the established quotas) 80% volume or more non-methylated spirit; ethanol and other types of non-methylated spirit of any concentration realised for the production of alcoholic products Non-methylated spirit less than 80% per volume; alcoholic liqueurs and other alcoholic drinks realised for the production of alcoholic products Alcoholic products (except for cognac, brandy, wine, wine materials and beer) Cognac, brandy (except for cognac, brandy produced from domestically produced cognac spirit) Cognac, brandy from domestically produced cognac spirit Wine 0.1 tenge/litre
From 2208
750 tenge/litre of 100% spirit
From 2207
60 tenge/litre
From 2208
75 tenge/litre of 100% spirit
2208
500 tenge/litre of 100% spirit 325 tenge/litre of 100% spirit 170 tenge/litre of 100% spirit 35 tenge/litre
2208
2208
From 2204, 2205, 2206 00 From 2204, 2205, 2206 00 From 2204, 2205, 2206 00 2203 00 From 2203 00 From 2402
10
Wine materials (except for those realised for the production of ethanol and alcoholic products)
170 tenge/litre
11
Wine materials realised for the production of ethanol and alcoholic products
20 tenge/litre
12 13
Beer Beer with an ethanol content of no more than 0.5%
26 tenge/litre 0 tenge/litre
14
Cigarettes with filters
1,000 tenge/1,000 pieces 600 tenge/1,000 pieces 1,220 tenge/1,000 pieces 95 tenge/piece
15
From 2402
Cigarettes without filters, papirosy
16
From 2402
Cigarillos
17
From 2402
Cigars
194
18
From 2403
Smokers, chewing, sucking tobacco; snuff, kalian and other types of tobacco in consumer packaging and intended for end users, except for pharmaceutical products containing nicotine Crude oil, gas condensate and natural gas Vehicles with engine volume of more than 3,000 m3
1,220 tenge/kg
19
From 2709 00 From 8702, 8703, 8704
0 tenge/tonne 100 tenge/m3
20
2) No.
on the excisable goods referred to in subpoint 5) of article 279 of this Code. Excise duty rate for 1 tonne (in tenge) Gasoline (except for aviation fuel) (TN VED EurAsEc code 2710 11410 0-2710 11590 0) Diesel (TN VED EurAsEc code 2710 19 3100-2710 19 490 0)
1 1
2 Wholesale realisation by producers of gasoline (except for aviation fuel) and diesel of own production Wholesale realisation by individuals and legal entities of gasoline (except for aviation fuel) and diesel Retail realisation by gasoline producers (except for aviation fuel) and diesel, and used for own production needs Retail realisation by individuals and legal entity of gasoline (except for aviation fuel) and diesel, and used for own production needs Import
3 4,500
4 540
5,000
600
500
60
4,500
540
Note. Goods shall be classified by TN VED EurAsEc code and (or) the name of the goods.
Chapter 39. Taxation of excisable goods produced and realised in the republic of kazakhstan
Article 281. Objects of Taxation 1. The object of taxation with respect to excise duty shall be: 1) the following operations performed by a payer of excise duty, involving excisable goods produced and (or) extracted and (or) bottled by the payer: the realisation of excisable goods; the transfer of excisable goods for processing on a tolling basis;
195
the transfer of excisable goods that are the product of the processing of tolling raw materials and other materials, including excisable materials; contributions to charter capital; the use of excisable goods as payment in kind; the shipment of excisable goods by a goods manufacturer to its own structural subdivisions; the use by manufacturers of excisable goods produced and (or) extracted and (or) bottled for their personal production requirements and for own production of excisable goods; 2) 3) 4) the wholesale realisation of gasoline (excluding aviation fuel) and diesel fuel; the retail realisation of gasoline (excluding aviation fuel) and diesel fuel; the realisation of bankrupt estate, confiscated and (or) ownerless excisable goods, excisable goods inherited by the state and excisable goods transferred to state ownership free of charge; the damage or loss of excisable goods.
5) 2.
The damage or loss of excise stamps or inventory stamps shall be regarded a realisation of excisable goods. The following shall not be subject to excise duty: 1) the export of excisable goods if the export meets the requirements established by article 288 of this Code; ethyl alcohol, within the limits of quotas determined by the authorised state body to monitor the production and distribution of ethyl alcohol, which is released to: produce medicinal and pharmaceutical preparations where the producer holds a license of the Republic of Kazakhstan to manufacture these products; state medical institutions provided they have the appropriate license; 3) the excisable goods listed in point 2 of article 653 of this Code that require remarking with new inventory stamps or excise stamps if the excise duty on these goods has already been paid; alcoholic medical products (except for balsams) that have been poured into consumer packaging no larger than 0.1 litres and registered in accordance with legislation of the Republic of Kazakhstan as a medicine.
3.
2)
4)
Article 282. Transaction Completion Date 1. Unless otherwise stipulated by this article, the transaction completion date shall, in all cases, be the date on which excisable goods are shipped (transferred) to the recipient. Where a manufacturer realises excisable goods it has produced through its own network of structural subdivisions, the transaction completion date shall be the date on which goods are shipped to structural subdivisions. If excisable goods supplied are transferred on a tolling processing basis, the transaction completion date shall be the date on which the goods are transferred to a contractor (processor). Where excisable goods are manufactured from goods supplied on a tolling processing basis, the transaction completion date shall be the date on which the manufactured excisable goods are transferred to the customer or entity designated by the customer.
2.
3.
196
4.
Where excisable goods are used for personal production purposes and for own production of excisable goods, the transaction completion date shall be the date on which the goods are transferred for that purpose. If excisable goods are transferred by the manufacturer from the place of production, the transaction completion date shall be the day the excisable goods are moved from the production address referred to in the license. If excisable products, excise stamps and inventory control stamps are damaged, the transaction completion date shall be the date on which a certificate on the write-off of the damaged excisable products (excise or inventory stamps) is drawn up or the date on which a decision is adopted on the further use of those products in the production process. If excisable goods, excise stamps or inventory stamps are lost, the transaction completion date shall be the date on which the excisable goods, excise stamps or inventory stamps were lost.
5.
6.
Article 283. Tax Base 1. For excisable goods for which fixed excise duty rates have been set, the tax base shall be determined as the volume of excisable goods produced and realised in physical terms. For excisable goods for which ad valorem excise duty rates have been set, the tax base shall be determined as the value of excisable goods produced and realised based on prices excluding excise duty and value added tax, at which the producer supplies the goods in question.
2.
Article 284. Special Features of the Taxation of all Types of Spirit and Wine Materials when various Rates are in Place 1. If various excise duty rates have been set for all types of spirit and wine materials in accordance with point 3 of article 280 of this Code, the tax base shall be determined separately for transactions taxed at the same rates. Where spirit and wine materials purchased by manufacturers of alcoholic products with excise duty at a rate lower than the base rate are used, but not in ethanol and (or) alcoholic products, the excise duty on the spirit and wine materials shall be recalculated and paid to the budget at the base excise duty rate set for all types of spirit and wine materials realised to persons that are not manufacturers of alcoholic products. Tax shall be recalculated and paid by the recipient of the spirit or wine materials. The provisions of point 2 of this article shall also apply in the event of the improper use of spirit purchased to manufacture medicinal and pharmaceutical preparations and provide medical services. The manufacturers of medicinal and pharmaceutical preparations and state medical institutions that have received spirit free of excise duty shall be payers of excise duty on this spirit.
2.
3.
Article 285. Damage or Loss of Excisable Goods 1. If manufactured excisable goods are damaged or lost, excise duty shall be paid in full, except for those cases that arose as a result of an emergency. This provision shall also apply in the case when gasoline (except for aviation fuel) and diesel purchased for subsequent sale are damaged or lost. 2. For the purposes of this article: 1) the term damaged excisable goods shall be understood to mean a deterioration of all or specific properties of goods, including at all technical production stages; the term lost excisable goods shall be understood to mean an event as a result of which goods were destroyed or lost, including at all technical production stages.
2)
197
A taxpayers loss of excisable goods within the limits set by legislation of the Republic of Kazakhstan for natural loss or a manufacturers losses up to the limit covered by normative and technical documentation shall not be considered a loss of excisable goods. Article 286. Damage or Loss of Excise Stamps or Inventory Control Stamps 1. Unless otherwise stipulated by point 2 of this article, if excise stamps or inventory control stamps are lost or damaged, excise duty should be paid according to the amount of declared stock. Excise duty shall be calculated on damaged or lost (included stolen) inventory control stamps intended for alcohol products in accordance with article 653 of this Code, based on the rates set for the vessel (packaging) volume shown on the stamp. 2. When excise stamps or inventory control stamps are lost or damaged, excise duty shall not be paid where: 1) the damage or loss of the excise stamps or inventory control stamps occurred as a result of emergencies; the damaged excise stamps or inventory control stamps have been accepted by the tax bodies based on an act of write-off for destruction.
2)
Article 287. Criteria for Recording a Realisation of Gasoline (Excluding Aviation) and Diesel in the Republic of Kazakhstan as a Wholesale or Retail Realisation 1. The realisation of gasoline (excluding aviation fuel) and diesel shall be classified as a wholesale realisation if, under a purchase and sale (exchange) agreement, the purchaser undertakes to accept the above-mentioned excisable goods and use them for subsequent realisation, provided that the suppliers under the purchase and sale (exchange) agreement in question are: 1) 2) manufacturers of gasoline (excluding aviation fuel) or diesel; taxpayers that have made a record of registration for specific types of activities in accordance with article 574 of this Code and that purchase or import gasoline (excluding aviation fuel) or diesel with a view to its subsequent realisation.
The shipment of gasoline (excluding aviation fuel) and diesel by structural subdivisions for subsequent realisation shall be regarded as a wholesale realisation. 2. A retail realisation of gasoline (excluding aviation fuel) and diesel shall include the following transactions carried out by the suppliers indicated in point 1 of this article: 1) the realisation of gasoline (excluding aviation fuel) and diesel to legal entities (including foreign legal entities) and individual entrepreneurs for their production requirements; the realisation of gasoline (excluding aviation fuel) and diesel to individuals; the use of gasoline (excluding aviation fuel) and diesel, which has been produced or purchased for subsequent realisation, for personal production requirements.
2) 3)
Article 288. Confirmation of an Export of Excisable Goods 1. Where excisable goods are realised for export, in order to confirm the legitimacy of an exemption from taxation in accordance with point 3 of article 281 of this Code, a taxpayer should, within 60 working days and in accordance with the obligatory procedure, file the following documents with the tax bodies at its location: 1) an agreement (contract) to supply excisable goods for export;
198
2)
a freight customs declaration or copy certified by the customs bodies, with a note from the customs body releasing excisable goods under the export regime. Where excisable goods are exported under the export regime through a system of major pipelines or by using the incomplete periodic declaration procedure, confirmation of export shall be a full freight customs declaration with a note from the customs body that made customs clearance;
3)
copies of bills of lading with a note from the customs body at the point of passage on the customs border of the Republic of Kazakhstan. Where excisable goods are exported under the export regime through a system of major pipelines, a delivery acceptance report for the goods shall be presented instead of copies of bill of lading documents;
4)
payment documents and bank statements confirming the actual receipt of revenue from the realisation of excisable goods in taxpayers accounts in the Republic of Kazakhstan that were opened in accordance with legislation of the Republic of Kazakhstan.
2.
Where excisable goods are exported to member-states of the Commonwealth of Independent States with which the Republic of Kazakhstan has concluded international treaties envisaging an exemption from excise duty for the export of excisable goods, a copy of a freight customs declaration drawn up in the country of import of the excisable goods shipped from the customs territory of the Republic of Kazakhstan under the export regime shall also be filed. If a realisation of excisable goods for export is not confirmed in accordance with points 1 and 2 of this article, the realisation shall be subject to excise duty in accordance with the procedure established by this section for realising excisable goods in the Republic of Kazakhstan.
3.
Article 289. Calculation of Excise Duty Excise duty shall be calculated by applying the established excise duty rate to the tax base. Article 290. Adjustment to the Tax Base The tax base shall be adjusted in the same tax period in which an excisable good was returned. The tax base shall be adjusted in accordance with this article on the basis of an additional tax invoice that should record excise duty to be adjusted in a separate line, and also on bilateral acts confirming the basis for a refund of excisable goods, and other documents confirming the returns referred to in the agreement (contract). Article 291. Tax Deductions 1. A taxpayer shall be entitled to reduce an amount of excise duty calculated in accordance with article 289 of this Code by the deductions established by this article. Excise duty on excisable goods used as the main raw material in the production of other excisable goods shall be deductible in accordance with this article. The following excise duty paid shall be deductible: 1) in the Republic of Kazakhstan when purchasing or importing excisable goods into the customs territory of the Republic of Kazakhstan; for excisable raw materials of own production; when transferring excisable goods manufactured from tolling excisable raw materials. Excise duty on all types of spirit, crude oil and gas condensate shall not be deductible. 199
2.
3.
2) 3)
4.
A deduction shall be taken for excise duty calculated based on the volume of excisable raw materials actually used to manufacture excisable goods in a tax period.
5. A deduction on excise duty paid following the purchase of excisable raw materials in the Republic of Kazakhstan shall be made if the following documents are available: 1) 2) a purchase and sale agreement for excisable raw materials; payment documents or cash register receipts that confirm the payment of excisable raw materials; waybills for the supply of excisable raw materials; tax invoices with a separate line for excise duty; blending acts (in the production of alcoholic products); write-off acts for excisable raw materials in production.
3) 4) 5) 6) 6.
Excise duty paid on excisable raw materials of own production shall be deducted if the following documents are available: 1) 2) 3) payment documents or other document confirming the payment of excise duty to the budget; blending acts (in the production of alcoholic products); write-off acts for excisable raw materials in production.
7.
Excise duty paid on the import of excisable raw materials into the Republic of Kazakhstan shall be deducted if the following documents are available: 1) 2) a purchase and sale agreement for the excisable raw materials; payment documents or other documents confirming the payment of excise duty to the budget upon customs clearance; a freight customs declaration for imported excisable raw materials; blending acts (in the production of alcoholic products); write-off acts for excisable raw materials in production.
3) 4) 5) 8.
Excise duty paid when transferring excisable goods manufactured from tolling excisable raw materials shall be deductible if the following documents are available: 1) 2) an agreement between the owner of tolling raw materials and the processor; payment documents or other documents confirming the payment of excise duty to the budget by the owner of the tolling excisable raw materials; a waybill for the release or act of transfer for excisable raw materials.
3) 9.
If excise duty paid by manufacturers of excisable goods when purchasing excisable raw materials in the Republic of Kazakhstan or importing them into the Republic of Kazakhstan exceed excise duty calculated for the excisable goods manufactured from them, the excess shall not be deductible.
Article 292. Deadline for paying Excise Duty 1. Unless otherwise stipulated by this article, excise duty on excisable goods shall be transferred to the budget on or before the 15th of the month following the reporting tax period. 200
2.
For excisable goods manufactured from raw materials and other materials supplied on a tolling processing basis, excise duty shall be paid on the date on which the products are transferred to the customer or to a person designated by the customer. Where crude oil and gas condensate produced in the Republic of Kazakhstan are transferred for industrial processing, excise duty shall be paid on the date on which they are transferred. Excise duty on the excisable goods established in subpoint 2) of article 279 of this Code, except for wine materials and beer, shall be paid before inventory control stamps are received.
3.
4.
Article 293. Place of Payment of Excise Duty 1. Excise duty shall be paid in the place where the object of taxation is located, except for those cases referred to in point 2 of this article. Payers of excise duty making wholesale and retail realisations of gasoline (except for aviation fuel) and diesel shall pay excise duty at the location of the objects relating to taxation.
2.
Article 294. Procedure for Taxpayers to calculate and pay Excise Duty for Structural Subdivisions and Objects relating to Taxation 1. Excise duty statements (hereafter in this section excise duty statement) shall be drawn up separately for operations subject to excise duty and concluded during a particular tax period by a structural subdivision and objects relating to taxation. Excise duty subject to payment for a structural subdivision, and also objects relating to taxation shall be determined based on an excise duty statement. 2. Payers of excise duty should file a statement of excise duty with the tax bodies at the location of a structural subdivision or objects relating to taxation within the deadline established by article 296 of this Code. Payers of excise duty with several objects relating to taxation registered in a single tax body shall file a single excise duty statement for all objects. 3. A legal entity payer of excise duty shall pay excise duty, including current payments, for structural subdivisions or objects relating to taxation either directly from its bank account or delegate payment to a structural subdivision. Individual entrepreneurs shall file a statement of excise duty payable for objects relating to taxation at the location of objects relating to taxation.
4.
Article 295. Tax Period The tax period for excise duty shall be the calendar month. Article 296. Tax Declaration 1. At the end of each tax period taxpayers should file an excise duty declaration with the tax bodies in their location on or before the 15th of the second month following the reporting tax period. Payers of excise duty shall file excise duty statements together with a declaration.
2.
201
Chapter 40. Taxation of the import of excisable goods

Article 297. Tax Base of Imported Excisable Goods 1. When excisable goods for which fixed excise duty rates have been set are imported into the customs territory of the Republic of Kazakhstan, the tax base shall be determined as the volume of excisable goods for import expressed in physical terms. When importing excisable goods for which ad valorem excise duty rates have been set, the tax base shall be determined as the customs value of the excisable goods for import, as determined in accordance with customs legislation of the Republic of Kazakhstan.
2.
Article 298. Deadline for paying Excise Duty on Excisable Goods for Import 1. Excise duty on goods for import shall be paid on the day specified by customs legislation of the Republic of Kazakhstan for making customs payments, except for those cases envisaged by point 2 of this article, in accordance with the procedure established by the authorised body for customs issues. Excise duty on excisable goods for import, which should be marked in accordance with article 653 of this Code, shall be paid before the date on which excise stamps or inventory control stamps are received. Excise duty shall be adjusted when making an actual import of the excisable goods referred to in part 1 of this point. Article 299. Import of Excisable Goods exempt from Excise Duty 1. Excise duty shall not be levied on excisable goods imported by individuals up to the limits approved by the Government of the Republic of Kazakhstan. The following excisable goods shall be exempt from excise duty on import: 1) excisable goods required to operate means of transport used in international transportation, during journeys and at stopping points en-route; excisable goods that have become unfit for use as merchandise and materials as a result of damage sustained prior to crossing the customs border of the Republic of Kazakhstan; excisable goods imported for the official use of foreign diplomatic or equivalent representations, or for the personal use of the diplomatic, administrative or technical personnel of these representations, including members of their families residing with them. These goods shall be exempt from excise duty in accordance with international treaties to which the Republic of Kazakhstan is a party; excisable goods conveyed across the customs border of the Republic of Kazakhstan that are exempt in accordance with customs regimes established by customs legislation of the Republic of Kazakhstan, except for goods under the release of goods into free circulation regime; alcoholic medical products (except for balsams) that have been bottled in consumer containers not exceeding 0.1 litres and registered in accordance with legislation of the Republic of Kazakhstan.
2.
2.
2)
3)
4)
5)
202
Section 10. Rent tax on exports Chapter 41. Rent tax on exports
Article 300. Payers Payers of rent tax on exports shall be individuals and legal entities realising crude oil, gas condensate and coal for export, except for subsoil users exporting crude oil and gas condensate produced within the framework of the contracts referred to in point 2 of article 308 of this Code. Article 301. Object of Taxation The object of taxation for rent tax on exports shall be the volume of crude oil, gas condensate and coal realised for export. Article 302. Calculation Procedure 1. The tax base for calculating rent tax on the export of crude oil and gas condensate shall be the value of the exported crude oil and gas condensate calculated based on the actual volume of crude oil and gas condensate realised for export, and the world price calculated in accordance with the procedure established by point 3 of article 334 of this Code. The tax base for rent tax on the export of coal shall be the value of exported coal calculated based on an actual volume of coal realised for export. 2. The monetary form of payment of rent tax on the export of crude oil and gas condensate may be changed by a decision of the Government of the Republic of Kazakhstan to a payment in kind in accordance with the procedure established by an additional agreement between the authorised state body and the taxpayer. The procedure for paying rent tax on the export of crude oil and gas condensate in kind is established by article 346 of this Code. Article 303. Rates of Rent tax on exports The rates of rent tax on the export of crude oil and gas condensate shall be established as follows: No. 1 1 2 3 4 5 6 7 8 World Price 2 Up to 20 USD per barrel inclusive Up to 30 USD per barrel inclusive Up to 40 USD per barrel inclusive Up to 50 USD per barrel inclusive Up to 60 USD per barrel inclusive Up to 70 USD per barrel inclusive Up to 80 USD per barrel inclusive Up to 90 USD per barrel inclusive Rate as a % 3 0 0 0 7 11 14 16 17
203
9 10 11 12 13 14 15 16 17 18 19
Up to 100 USD per barrel inclusive Up to 110 USD per barrel inclusive Up to 120 USD per barrel inclusive Up to 130 USD per barrel inclusive Up to 140 USD per barrel inclusive Up to 150 USD per barrel inclusive Up to 160 USD per barrel inclusive Up to 170 USD per barrel inclusive Up to 180 USD per barrel inclusive Up to 190 USD per barrel inclusive Up to 200 USD per barrel inclusive
19 21 22 23 25 26 27 29 30 32 32
For an export of coal rent tax on exports shall be calculated at the rate of 2.1%. Article 304. Tax Period The tax period for rent tax on exports shall be the calendar quarter. Article 305. Payment Deadline A taxpayer shall be obliged to pay an assessed amount of tax to the budget on or before the 25th of the second month following the tax period. Article 306. Tax Declarations A declaration of rent tax on exports shall be filed with the tax bodies in the taxpayers location on or before the 15th of the second month following the tax period.
Section 11. Taxation of subsoil users Chapter 42. General provisions

Article 307. Relations Governed by this Section 1. When conducting subsoil use operations within the framework of subsoil use contracts concluded in accordance with the procedure determined by legislation of the Republic of Kazakhstan, subsoil users shall pay all taxes and other obligatory payments to the budget established by this Code. This section shall establish the procedure for calculating and paying taxes and making special payments of subsoil users from subsoil use operations. Special payments and taxes of subsoil users shall include: 1) special payments of subsoil users: a)
2.
3.
signature bonuses; 204
b) c) 2) 3)
commercial discovery bonuses; payments to reimburse historical costs;
minerals extraction tax; excess profits tax.
For the purposes of this section special terms and concepts shall have the arithmetic meanings defined by subsoil and subsoil use legislation of the Republic of Kazakhstan. 4. The procedure for placing fields (groups of fields or parts of fields) in the low-yield, high viscosity, flooded, marginal or depleted categories; a list of the same and the corresponding procedure for charging the taxes and special payments established by this section shall be determined by the Government of the Republic of Kazakhstan.
Article 308. Taxation of Subsoil Use Operations 1. Taxes and other obligatory payments to the budget shall be calculated on activities performed within the framework of subsoil use contracts in accordance with tax legislation of the Republic of Kazakhstan in effect at the moment obligations to pay them arise, except for those cases listed in point 2 of this article. The tax regime defined in a production sharing agreement (contract) concluded between the Government of the Republic of Kazakhstan or competent body and a subsoil user prior to 1 January 2009, and which has undergone an obligatory tax expertise, as well as in a subsoil use contract approved by the President of the Republic of Kazakhstan, shall be retained for taxes and other obligatory payments to the budget for which the stability of the tax regime is directly provided in accordance with the provisions of the agreement (contract), shall remain in force exclusively for the parties of the agreement (contract) and also for agents (operators) in accordance with point 3 of this article for the entire period they are valid, and shall not extend to those persons that are not parties to such an agreement (contract) or agents (operators) in accordance with point 3 of this article, and may be amended with the mutual consent of the parties. Taxes and other obligatory payments to the budget that are subject to withholding at the source of payment, and for which a subsoil user acts as a tax agent, should be paid in accordance with tax legislation of the Republic of Kazakhstan in effect at the moment the obligation to pay them arises. A subsoil user shall fulfil this obligation in accordance with the procedure established by point 1 of this article irrespective of whether a production sharing agreement (contract) that has undergone an obligatory tax expertise and concluded between the Government of the Republic of Kazakhstan or competent body and the subsoil user prior to 1 January 2009, and a subsoil use contract approved by the President of the Republic of Kazakhstan include provisions governing the procedure for charging tax withheld at the source of payment. If certain taxes and other obligatory payments to the budget stipulated by the tax regime of a production sharing agreement (contract) that has undergone an obligatory tax expertise and was concluded between the Government of the Republic of Kazakhstan or competent body and a subsoil user prior to 1 January 2009, and also the tax regime of a subsoil use contract approved by the President of the Republic of Kazakhstan have been abolished, a subsoil user shall continue paying them to the budget in accordance with the procedure and in the amounts established by the production sharing agreement (contract) and (or) subsoil user agreement until they expire or amendment and additions are introduced in accordance with the procedure established by legislation of the Republic of Kazakhstan. 3. If a subsoil use right under a subsoil use contract belongs to several individuals and (or) legal entities acting as a common partnership (consortium), then the partners of the common partnership (consortium) should appoint an agent (operator) to keep consolidated tax accounting for activities performed under the subsoil use contract. A participant(s) of a common partnership (consortium) and (or) agent (operator) shall fulfil the tax obligations under a subsoil use contract in accordance with the procedure established by articles 4 and 5 of this Code.
2.
205
If an agent (operator) is appointed by the provisions of a production sharing agreement (contract) that has undergone an obligatory tax expertise and was concluded between the Government of the Republic of Kazakhstan or competent body and a subsoil user prior to 1 January 2009, and also a subsoil use contract approved by the President of the Republic of Kazakhstan, if the agent (operator) is responsible for fulfilling tax obligations under the agreement (contract) then the agent (operator) shall fulfil the tax obligation under the agreement (contract) in question according the tax regime valid in relation to the parties of the agreement (contract) in accordance with point 2 of this article. 4. A non-resident subsoil user operating under a subsoil use contract shall also be subject to taxation in accordance with articles 198-200 of this Code. A subsoil user should keep separate tax accounting in accordance with article 310 of this Code to calculate its tax obligations for activities performed within the framework of each subsoil use contract concluded, and also when developing low-yield, high viscosity, flooded, marginal and depleted fields (group of fields, part of a field provided activities on such a group of fields or part of a field are carried out within the framework of a single contract) if taxes and other obligatory payments to the budget are calculated for the field in question (group of fields, part of a field provided activities on such a group of fields or part of a field are carried out within the framework of a single contract) in accordance with a procedure and at rates that differ from those established by this Code. This provision shall not extend to contracts to produce commonly occurring mineral resources, underground water, therapeutic mud, and also expenses to construct and (or) operate underground facilities unrelated to exploration and (or) production. A subsoil user engaged in the commercial production of oil, mineral stock, underground water and therapeutic mud whose production is not stipulated by the terms of a subsoil use contract and whose reserves are approved by the relevant authorised state body of the Republic of Kazakhstan should pay taxes and make other obligatory payments to the budget on them in accordance with the procedure established by this Code until the relevant amendments and additions are made to the subsoil use contract in accordance with the procedure established by legislation of the Republic of Kazakhstan. Article 309. Taxation of Activities not related to Subsoil Use Operations The fulfilment of tax obligations within the framework of a subsoil use contract shall not free a subsoil user from fulfilling tax obligations related to activities outside of the framework of a subsoil use contract in accordance with tax legislation of the Republic of Kazakhstan in force at the time the tax obligation arose. Article 310. Main Principles for keeping Separate Tax Accounting for Subsoil Use Contracts 1. A subsoil user should keep separate tax accounting for objects of taxation and (or) objects relating to taxation to calculate tax obligations related to activities for each subsoil use contract, and also when developing low-yield, high viscosity, flooded, marginal and depleted fields (group of fields provided activities are performed for such a group of fields within the framework of a single contract) as defined by point 4 of article 307 of this Code. For the purposes of this article the following terms shall have the following meanings: 1) direct income and expenses a subsoil users income and expenses in a reporting tax period, including income and expenses related to fixed assets, which have a direct cause and effect relationship with a specific subsoil use contract or non-contractual activities; indirect income and expenses a subsoil users income and expenses in a reporting tax period, including income and expenses related to total fixed assets that have a direct cause and effect relationship with several subsoil use contracts and that are to be allocated exclusively between these subsoil use contracts;
5.
2.
2)
206
3)
general income and expenses a subsoil users income and expenses in a particular reporting tax period, including income and expenses on general fixed assets related to contractual and non-contractual activities and which do not have a direct cause and effect relationship with a specific subsoil use contract and (or) non-contractual activities, and which require allocation between them; total fixed assets fixed assets related to contractual and non-contractual activities and which by virtue of the specifics of their use do not have a direct cause and effect relationship with a specific subsoil use contract and (or) non-contractual activities; indirect fixed assets fixed assets which by virtue of the specifics of their use have a direct cause and effect relationship solely with subsoil use contracts; cost of production and initial processing (enrichment) production costs as defined by international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan that are directly related to the extraction of mineral resources from the subsoil to the surface and their initial processing (enrichment), except for costs to store, transport or realise mineral resources, general administrative and other costs not related directly to the extraction of mineral resources from the subsoil to the surface and their initial processing (enrichment).
4)
5)
6)
3.
Subsoil users shall keep separate tax accounting for objects of taxation and (or) objects relating to taxation on the basis of data in accounting documents in accordance with an approved tax accounting policy, and taking into account the provisions established by this article. A subsoil user shall develop a procedure for keeping separate tax accounting and approve it in a tax accounting policy (section). A subsoil user shall file a copy of a newly approved tax accounting policy (section) with the tax body at its location within the deadline established by this Code for filing a corporate income tax declaration. A subsoil user shall file amendments and additions to a tax accounting policy (section) or a new version of a tax accounting policy (section) with the tax body at its location within 10 working days after they have been approved.
4.
Separate tax accounting for contractual activities shall be kept for the following taxes and other obligatory payments to the budget: 1) 2) 3) 4) 5) 6) corporate income tax; signature bonuses; commercial discovery bonuses; minerals extraction tax; excess profits tax; other taxes and other obligatory payments to the budget calculated in accordance with a procedure that differs from that established by this Code, based on the tax regime of subsoil use contracts defined by point 2 of article 308 of this Code.
5.
When keeping separate tax accounting to calculate a tax obligation, a subsoil user should: 1) record objects of taxation and (or) objects relating to taxation in tax accounting to calculate the taxes and other obligatory payments to the budget referred to in point 4 of this article, for each subsoil use contract separately from non-contractual activities; calculate the taxes and other obligatory payments to the budget not referred to in point 4 of this article, and also corporate income tax as a whole for all subsoil user activities;
2)
207
3)
file tax reporting for the taxes and other obligatory payments to the budget referred to in point 4 of this article, except for tax reporting on corporate income tax, for each subsoil use contract; file a single corporate income tax declaration for the subsoil users activities and the relevant appendices for each subsoil use contract; file tax reporting on the taxes and other obligatory payments to the budget not referred to in point 4 of this article for all subsoil user activities.
4)
5)
6.
Corporate income tax for a subsoil users total activities shall not take into consideration losses incurred under any specific subsoil use contract that a subsoil user is entitled to compensate solely from income generated from activities under that subsoil use contract, in subsequent tax periods taking into account the provisions of article 137 of this Code. For the purpose of keeping separate tax accounting of objects of taxation and (or) objects relating to taxation a subsoil users income and expenses shall be allocated to direct, indirect and general categories. Subsoil users shall classify income and expenses as direct, indirect and general themselves, based on the specifics of their activities. Direct income and expenses should be attributed in full only to such contractual or non-contractual activities with which they have a direct cause and effect relationship. General income and expenses shall be allocated between contractual and non-contractual activities and attributed in appropriate parts to the income and expenses of the contract and noncontractual activities with which they have a cause and effect relationship. Indirect income and expenses shall be allocated solely between subsoil use contracts and attributed in appropriate parts to the income and expenses of the contract and non-contractual activities with which they have a cause and effect relationship. General and indirect income and expenses shall be allocated in accordance with the methods established by point 9 of this article, and taking into account the provisions of point 8 of this article.
7.
8.
Expenses incurred by a subsoil user on general and indirect fixed assets, including depreciation expenses and subsequent expenses, shall be allocated between a subsoil use contractor(s) and non-contractual activities. The total deduction on general and indirect interest expenses determined in accordance with article 103 of this Code shall be subject to allocation. The aggregate (consolidated) result for the tax period shall be allocated on an exchange difference if a positive exchange difference exceeds a negative exchange difference or a negative exchange difference exceeds a positive exchange difference. Taxes deductible on general and indirect objects of taxation and (or) objects relating to taxation shall be allocated in accordance with the methods established by point 9 of this article without allocating the actual objects of taxation and (or) objects relating to taxation.
9.
Subsoil users shall allocate general and indirect income and expenses for each contractual activity themselves taking into account the specifics of the activities or subsoil use activities performed on the basis of the subsoil user adopting one or several separate tax accounting methods in a tax accounting policy, including: 1) according to the weighted average of direct income due on each specific subsoil use contract and non-contractual activities in the subsoil users total income for the tax period; according to the weighted average of mineral resource production volumes for each specific subsoil use contract in total mineral resources produced for each of the taxpayers subsoil use contracts;
2)
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3)
according to the weighted average of direct expenses due on each specific subsoil use contract and non-contractual activities in total expenses incurred by the subsoil user for the tax period; according to the weighted average of expenses incurred on one of the following categories direct production expenses, employment compensation or the value of fixed assets due on each specific subsoil use contract and contractual activity in total expenses for the given item incurred by the subsoil user for the tax period; according to the weighted average of employee numbers participating in contractual activities in the subsoil users total employee numbers; other methods. The various allocation methods established by this point may be applied to different types of general and indirect income and expenses. For a more accurate allocation of general and (or) indirect income and expenses, a subsoil user shall determine the weighted average obtained as a result of applying one of the above methods as a percentage accurate to one hundredth of a percent (0.01%).
4)
5)
6)
10. To calculate corporate income tax on a subsoil users contractual activities, if oil and (or) mineral stock are transferred after initial processing (enrichment) for subsequent processing to another legal entity (without transferring ownership rights) and (or) to a structural subdivision or other technical division within a single legal entity or for use in own production needs, a subsoil user shall determine income from the operation using the actual cost of production and initial processing (enrichment) in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, and increased by 20%. If mineral stock is realised after its initial processing (enrichment), total annual income on these operations shall include income determined on the basis of the realisation price, but no lower than the value of a commercial product obtained as a result of initial processing (enrichment), in observance of transfer pricing legislation of the Republic of Kazakhstan. For the purposes of this section other technical divisions of a legal entity shall be recognised as mines, pits, quarries, crushing mills (installations), enrichment plants or production or metallurgy workshops. 11. The provisions of this article on separate tax accounting to calculate tax obligations, except for minerals extraction tax, shall not cover tax obligations with respect to the following types of subsoil use contracts to: 1) 2) 3) 4) explore and (or) produce commonly occurring mineral resources; explore and (or) produce underground water; explore and (or) produce therapeutic mud; construct and (or) operate underground facilities unrelated to exploration and (or) production.
12. Operations and (or) the results of activities under the subsoil use contracts referred to in point 11 of this article, which are a part of activities under contracts to perform petroleum or mining operations shall be recorded in tax accounting with respect to their relevant petroleum or mining subsoil use contract taking into accounting the specifics of the procedure for subsoil users to keep separate tax accounting.
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Chapter 43. Bonuses

Article 311. General Provisions 1. 2. Bonuses shall be considered as fixed subsoil user payments. The following types of bonuses may be established depending on the type and terms of subsoil use contract concluded: 1) 2) signature bonuses; commercial discovery bonuses.
1. Signature Bonus Article 312. General Provisions 1. A signature bonus shall be a one-off fixed payment made by a subsoil user to acquire a right to perform subsoil use operations in a contracting territory.
Article 313. Payers Payers of signature bonuses shall be individuals and legal entities who have entered into subsoil use contracts in accordance with the procedure established by legislation of the Republic of Kazakhstan. Article 314. Procedure for establishing the Size of a Signature Bonus 1. The initial size of a signature bonus shall be determined individually for each subsoil use contract concluded as follows: 1) for geological exploration contracts for which mineral resource reserves have not been approved: oil contracts 2,800 times the monthly calculation index set by the law on the state budget for the relevant financial year; contracts to produce mineral stock, except for contracts to develop man-made mineral formations 280 times the monthly calculation index set by the law on the state budget for the relevant financial year; contracts relating to commonly occurring mineral resources, underground water and therapeutic mud 40 times the monthly calculation index set by the law on the state budget for the relevant financial year; 2) for production contracts: for oil contracts: if reserves have not been approved 3,000 times the monthly calculation index set by the law on the state budget for the relevant financial year; if reserves have been approved using the formula (V x 0.04%) + (Vp x 0.01%), but no less than 3,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, where: V is the value of total reserves of crude oil, gas condensate or natural gas approved by the state commission for mineral resource reserves of the Republic of Kazakhstan, for industrial categories A, B, C1;
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Vp is the total value of C2 category preliminarily valued reserves approved and (or) taken into consideration in the conclusion of the state commission for mineral resource reserves of the Republic of Kazakhstan to calculate the reserves of potentially commercial objects and category C3 forecast reserves; for contracts to produce mineral stock, except for contracts for the exploration of man-made mineral formations: if reserves have not been approved 500 times the monthly calculation index set by the law on the state budget for the relevant financial year; if reserves have been approved, using the formula (V x 0.01%) + (Vp x 0.05%), but no less than 500 times the monthly calculation index set by the law on the state budget for the relevant financial year, where: V is the value of total reserves of mineral stock approved by the state commission for mineral resource reserves of the Republic of Kazakhstan, for industrial categories A, B, C1; Vp is the total value of C2 category preliminarily valued mineral stock reserves approved and (or) taken into consideration in the conclusion of the state commission for mineral resource reserves in the Republic of Kazakhstan to calculate the reserves of potentially commercial objects and forecast reserves; for contracts with respect to commonly occurring mineral resources, underground water and therapeutic mud using the formula (V x 0.01%), but no less than 120 times the monthly calculation index set by the law on the state budget for the relevant financial year; 3) for contracts to process man-made mineral formations - using the formula (V1 x 0.01%), but no less than 300 times the monthly calculation index set by the law on the state budget for the relevant financial year; 4) for contracts to explore the subsoil for the discharge of waste water, and also the construction and (or) operation of underground facilities not related to exploration and (or) production 400 times the monthly calculation index set by the law on the state budget for the relevant financial year. 2. The value of mineral resource reserves shall be determined using the exchange price set for the mineral resources in question on the International Petroleum Exchange or London Metal Exchange and published in the Platts Crude Oil Marketwire by McGraw-Hill Companies Inc, the Metal Bulletin journal published by Metal Bulletin Journals Limited, the Metal-Pages journal published by MetalPages Limited at the date a tender for subsoil use rights is announced in accordance with the procedure established by articles 334 and 338 of this Code. When mineral resources have no exchange price, the value of recoverable and forecast reserves shall be determined based on total production costs stated in the work programme for the entire period a contract remains in force, and increased by a coefficient of 1.2. 3. The initial size of a signature bonus before a tender to receive subsoil use rights is held may be increased according to a decision of the tender commission of the competent body. The final value of a signature bonus shall be no lower than that set by a tender commission decision after a tender to receive subsoil use rights or by the competent body after direct talks have been held with a subsoil user, and shall be included in a subsoil use contract.
4.
Article 315. Signature Bonus Payment Deadline A signature bonus shall be paid to the budget in accordance with the following procedure: 1) 50% of the established amount within 30 calendar days from the date a taxpayer is declared as the tender winner in accordance with the procedure established by subsoil and subsoil use legislation of the Republic of Kazakhstan;
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2)
50% of the established amount no later than 30 calendar days from the date a subsoil use contract enters into force.
Article 316. Tax Declaration A subsoil user shall file a signature bonus declaration with the tax bodies at its location on or before the 15th of the second month following the month in which the payment became due. 2. Commercial Discovery Bonus Article 317. General Provisions 1. A subsoil user shall pay a commercial discovery bonus for each commercial discovery in a contracting territory, including for the discovery of mineral resources during an additional exploration of deposits, which leads to an increase in initially established recoverable reserves, except for those cases referred to in point 2 of this article. A commercial discovery bonus shall not be payable on contracts concluded to explore mineral resource deposits and where no subsequent production is stipulated.
2.
Article 318. Payers Payers of a commercial discovery bonus shall be subsoil users who have declared a commercial discovery of mineral resources in a contracting territory when conducting subsoil use operations within the framework of concluded subsoil use contracts. Article 319. Object of Taxation The object of taxation for a commercial discovery bonus shall be the physical volume of recoverable mineral resource reserves as confirmed for the contracting territory by the relevant authorised state body. Article 320. Tax Base The tax base for calculating a commercial discovery bonus shall be the value of recoverable mineral resource reserves confirmed by the relevant authorised state body. To calculate a commercial discovery bonus the value of recoverable mineral resource reserves shall be determined using the exchange price set for the mineral resources in question on the International Petroleum Exchange or London Metal Exchange and published in the Platts Crude Oil Marketwire by McGraw-Hill Companies Inc, the Metal Bulletin journal published by Metal Bulletin Journals Limited, the Metal-Pages journal published by Metal-Pages Limited at the date a payment is made in accordance with the procedure established by articles 334 and 338 of this Code. If mineral resources have no exchange price, the value of recoverable reserves shall be determined based on planned production costs stated in a feasibility study approved by the relevant authorised state body, and increased by the value of planned profitability. Article 321. Procedure for calculating a Commercial Discovery Bonus The value of a commercial discovery bonus shall be determined based on the object of taxation, tax base and rate. Article 322. Commercial Discovery Bonus Rate Commercial discovery bonuses shall be payable at 0.1% of the tax base.
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Article 323. Commercial Discovery Bonus Payment Deadline A commercial discovery bonus shall be paid within 90 days of the day the authorised state body approves the volume of recoverable mineral resource at a deposit. Article 324. Tax Declaration A subsoil user shall file a commercial discovery bonus declaration with the tax body at its location on or before the 15th of the second month following the month in which the payment became due.
Chapter 44. Payment to reimburse historical costs

Article 325. General Provisions A payment to reimburse historical costs shall be a fixed subsoil user payment to refund total costs incurred by the state in carrying out geological research and developing a contracting territory before a subsoil use contract is concluded. Article 326. Payers Subsoil users who have concluded subsoil use contracts in accordance with the procedure established by legislation of the Republic of Kazakhstan shall make payments to reimburse historical costs for mineral resource deposits where the state has incurred costs in carrying out geological research and developing a contracting territory before contracts are concluded. Article 327. Procedure for setting Payments to reimburse historical costs 1. The authorised state body shall calculate historical costs incurred by the state in geological research and developing a contracting territory in accordance with the procedure established by legislation of the Republic of Kazakhstan, which shall then be paid to the budget in accordance with the provisions of this article. A part of historical costs in accordance with subsoil and subsoil use legislation of the Republic of Kazakhstan shall be payable to the budget in the form of a charge to acquire geological information owned by the state. The remaining part of historical costs shall be paid to the budget in the form of a payment to reimburse historical costs. 2. An obligation to make a payment to the budget to reimburse historical costs shall arise from the date a confidentiality agreement was concluded between a subsoil user and the authorised state body for the study and use of the subsoil, while for subsoil use contracts, including production sharing agreements concluded prior to 1 January 2009, the same obligation shall arise from the date an additional agreement is concluded with the authorised state body responsible for determining the amount of historical costs.
Article 328. Payment Procedure and Deadline 1. Payments to reimburse historical costs incurred by the state in geological research and developing a contracting territory shall be paid by a subsoil user from the start of the production stage after a commercial discovery in accordance with the following procedure: 1) if the total payment to reimburse historical costs incurred by the state in geological research and developing a contracting territory amounts to less than 10,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, then a taxpayer shall make a payment to reimburse historical costs on or before 10 April of the year following the year in which a subsoil user began producing mineral resources;
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2)
if the total payment to reimburse historical costs incurred by the state in geological research and developing a contracting territory exceeds 10,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, then a subsoil user shall make the payment to reimburse historical costs quarterly in equal shares of at least 2,5000 times the monthly calculation index set by the law on the state budget for the relevant financial year, according to a schedule agreed by the authorised state body for economic expertises, but for no more than 10 years.
2.
Payments to reimburse historical costs shall not be paid in relation to contracts to explore mineral resource deposits not stipulating further production.
Article 329. Tax Declaration 1. If a total payment to reimburse historical costs incurred by the state in geological research and developing a contracting territory amounts to less than 10,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, then a taxpayer shall file a declaration with the tax body at its location on or before 31 March of the year following the year in which the subsoil user began producing mineral resources. If a total payment to reimburse historical costs incurred by the state in geological research and developing a contracting territory exceeds 10,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, then a taxpayer shall file a quarterly th declaration with the tax body at its location on or before the 15 of the second month following the reporting quarter.
2.
Chapter 45. Minerals extraction tax

Article 330. General Provisions 1. Subsoil users shall pay minerals extraction tax separately for each type of mineral stock; oil, underground water and therapeutic mud produced in the Republic of Kazakhstan. Minerals extraction tax shall be paid in monetary form, except for the case stipulated by point 3 of this article. When operating under a subsoil use contract the Government of the Republic of Kazakhstan may permit minerals extraction tax to be paid in kind in accordance with the procedure established by an additional agreement concluded by the authorised state body and subsoil user. The procedure for paying minerals extraction tax in kind as established by this Code, as well as on royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code has been established by article 346 of this Code. 4. Minerals extraction tax for all types of mineral stock produced, as well as oil, underground water and therapeutic mud, irrespective of the type of production, shall be paid at the rates and in accordance with the procedure established by this chapter. Mineral resources extracted from written-off reserves (return of losses) for each deposit, and also the oil, mineral stock, underground water and therapeutic mud used in technical samples and research shall be excluded from total oil, underground water, therapeutic mud and depleted mineral resource reserves produced for the purpose of minerals extraction tax. Oil, mineral stock, underground water and therapeutic mud used in technical samples and research shall be limited to the minimum mass of technical samples referred to in state standards of the Republic of Kazakhstan for the relevant types (sorts) of oil, mineral stock, underground water and therapeutic mud, and (or) should be included in the work programme in a subsoil use contract.
2.
3.
5.
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Article 331. Payers Payers of minerals extraction tax shall be subsoil users producing oil, mineral stock, underground water and therapeutic mud, as well as extracting mineral resources from man-made mineral formations within the framework of each subsoil use contract concluded. 1. Minerals Extraction Tax on Oil Article 332. Object of Taxation 1. The object of taxation for minerals extraction tax shall be physical volume of crude oil, gas condensate and natural gas produced by a subsoil user during a specific tax period. To calculate minerals extraction tax the total volume of crude oil, gas condensate and natural gas produced by a subsoil user for a specific tax period shall be divided into: 1) crude oil and gas condensate realised for processing at an oil refinery in the Republic of Kazakhstan the volume of crude oil and gas condensate produced by a subsoil user for each subsoil use contract for the specific tax period and realised, including through third parties, for processing at an oil refinery in the Republic of Kazakhstan; crude oil and gas condensate realised for processing as tolling raw materials at an oil refinery in the Republic of Kazakhstan the volume of crude oil and gas condensate produced by a subsoil user for each subsoil use contract for the specific tax period and transferred, including through third parties, as tolling raw materials for processing at an oil refinery in the Republic of Kazakhstan; crude oil and gas condensate used by a subsoil user for own production needs the volume of crude oil and gas condensate produced by a subsoil user for each subsoil use contract for the specific tax period and used for own production needs during the tax period; natural gas realised on the domestic market of the Republic of Kazakhstan and (or) used for own production needs; commercial crude oil, gas condensate and natural gas total crude oil, gas condensate and natural gas produced by a subsoil user during the tax period under each separate subsoil use contract less the crude oil, gas condensate and natural gas referred to in subpoints 1)-4) of point 2 of this article.
2.
2)
3)
4)
5)
3.
To confirm a supply, including through a third party, of crude oil and gas condensate to an oil refinery in the Republic of Kazakhstan, a subsoil user should have supporting documentation available on the volume and value of crude oil and gas condensate acquired from the subsoil user by the oil refinery, as well as their value exclusive of indirect taxes. Minerals extraction tax shall not be payable on natural gas reinjected into the subsoil. For the purposes of this article natural gas burnt in flares shall be exempt from minerals extraction tax.
4. 5.
Article 333. Tax Base The tax base to calculate minerals extraction tax shall be the value of crude oil, gas condensate and natural gas produced for the tax period. Article 334. Procedure for determining the Value of Crude Oil, Gas Condensate and Natural Gas 1. Minerals extraction tax for crude oil and gas condensate produced during a specific tax period shall be calculated in accordance with the following procedure:
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1)
upon realisation to an oil refinery, including through a third party as the product of the actual volume of crude oil and gas condensate realised, and the oil refinerys actual purchase price per unit of production; when crude oil and gas condensate are transferred for processing as tolling raw materials and (or) used by a subsoil user for own production needs as the product of the actual volume of crude oil and gas condensate supplied to an oil refinery, including through a third party, and (or) used by a subsoil user for own production needs, and the cost of production of a unit of production determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%.
2)
2.
The value of commercial crude oil, gas condensate and natural gas produced by a subsoil user under each subsoil use contract for the tax period shall be determined as the product of the volume of commercial crude oil, gas condensate and natural produced and the world price per unit of production calculated for the tax period in accordance with the procedure established by point 3 of this article. The crude oil and gas condensate world price shall be determined as the arithmetic mean of daily quotes separately for Urals Med or Brent Dtd brands in a specific tax period based on information published in Platts Crude Oil Marketwire. In the absence of information on prices for the above brands in above sources, Petroleum Argus shall be used. The following formula shall be applied to calculate the world price: S = (P1 + P2 +...+Pn)/n, where: S is the world price for crude oil and gas condensate for the tax period; P1, P2....Pn is the daily averaged quote price for crude oil, gas condensate on the days quotes are published during the tax period; n is the number of days in the tax period on which quotes were published. The daily averaged quote price for crude oil and gas condensate shall be determined using the following formula: P1, P2,....Pn = (C1 + C2)/2, where: Pn is the daily averaged quote price for Urals Med or Brent Dtd crude oil; C1 is the daily averaged quote opening price for Urals Med or Brent Dtd crude oil; C2 is the daily averaged quote closing price for Urals Med or Brent Dtd crude oil. A subsoil user shall classify crude oil and gas condensate as a particular standard of Urals Med or Brent Dtd crude oil based on agreements for the realisation of crude oil. When a realisation agreement does not refer to a standard sort of crude oil, a subsoil user should treat crude oil supplied under the agreement in question as the crude oil whose world price for the tax period is the highest.
3.
4.
The natural gas world price shall be determined as the arithmetic mean of daily quotes for the tax period based on information published in Platts Crude Oil Marketwire. Petroleum Argus shall be used in the absence of information on prices for natural gas in Platts Crude Oil Marketwire. For the purpose of minerals extraction tax the value of natural gas realised by a subsoil user on the domestic market of the Republic of Kazakhstan and (or) used for own production needs shall be determined in accordance with the following procedure: 1) upon realisation of natural gas produced on the domestic market of the Republic of Kazakhstan based on the average weighted realisation price for the tax period determined in accordance with the procedure established by point 2 of article 341 of this Code;
5.
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2)
when natural gas produced is used for own production needs as the product of the actual volume of natural gas used by a subsoil user for own production needs, and the cost of production of a unit of production determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%. If natural gas is produced in association with crude oil, the cost of production of natural gas shall be determined on the basis of the cost of production of the crude oil according to the following ratio: 1,000 m3 of natural gas corresponds to 0.857 tonnes of crude oil.
6.
The world price of standard crude oil, gas condensate and natural gas brands shall be determined for each tax period by the authorised body in accordance with the procedure established by this Code and shall be published in the mass media on or before the 10th of the month following the reporting tax period.
Article 335. Procedure for calculating Tax 1. Minerals extraction tax payable to the budget shall be determined based on an object of taxation, tax base and rate. To calculate minerals extraction tax a subsoil user shall apply a rate for the calendar year that corresponds to the planned production volume for the current tax year for each separate subsoil use contract, in accordance with the scale provided in article 336 of this Code. To ensure an accurate and complete payment of minerals extraction tax to the budget, a subsoil user should file a certificate with the tax body at its place of registration on or before 20 January of the current calendar year on planned production volumes of crude oil, gas condensate and natural gas for the coming year for each separate subsoil use contract. In this respect, planned production volumes of crude oil, gas condensate and natural gas for the current year should be agreed with the competent body. 3. If at the end of the reporting calendar year the actual volume of crude oil, gas condensate and natural gas produced does not match the planned volume and results in a change to the rate of minerals extraction tax, the subsoil user should adjust the minerals extraction tax calculated for the reporting year. Minerals extraction tax shall be adjusted in a declaration for the last tax period of the reporting tax year by applying the rate of minerals extraction tax that corresponds to the actual volume of crude oil, gas condensate and natural gas actually produced as determined in accordance with article 336 of this Code against the tax base calculated minerals extraction tax declarations for the 1st-3rd quarters of the reporting tax year. The tax obligation for minerals extraction tax for the last tax period of the reporting year shall take adjustments into consideration. Article 336. Rates of Minerals Extraction Tax Rates of minerals extraction tax for crude oil, including gas condensate, shall be established in fixed terms according to the following scale: No. 1 1 2 3 Volume of Annual Production 2 Up to 250,000 tonnes inclusive Up to 500,000 tonnes inclusive Up to 1,000,000 tonnes inclusive Rate, % 3 7 9 10 217
2.
4 5 6 7 8 9 10
Up to 2,000,000 tonnes inclusive Up to 3,000,000 tonnes inclusive Up to 4,000,000 tonnes inclusive Up to 5,000,000 tonnes inclusive Up to 7,000,000 tonnes inclusive Up to 10,000,000 tonnes inclusive Over 10,000,000 tonnes
11 12 13 14 15 17 20
If crude oil and gas condensate are realised on the domestic market of the Republic of Kazakhstan in accordance with the procedure stipulated by subpoints 1)-3) of point 2 of article 332 of this Code, a reduction coefficient of 0.5 shall be applied to the rates in question. The rate of minerals extraction tax for natural gas shall be 10%. When realising natural gas on the domestic market, minerals extraction tax shall be paid at the following rates, depending on annual production volumes. No. 1 1 2 3 Annual Production Volume 2 Up to 1.0 billion m3 inclusive Up to 2.0 billion m3 inclusive Over 2.0 billion m3 Rates, % 3 0.5 1.0 1.5
2. Minerals Extraction Tax for Mineral Stock, except for Commonly occurring mineral resources Article 337. Object of Taxation The object of taxation shall be the physical volume of mineral resource reserves contained in mineral stock (taxable volume of depleted reserves). For the purposes of this section, the taxable volume of depleted reserves shall be the volume of depleted mineral resource reserves contained in mineral stock that are extracted and used (realised) according to the conditions of a subsoil use contract, less standard losses for the tax period. The volume of standard losses for each mining unit shall be established on the basis of a technical design for field development approved by the relevant authorised state body of the Republic of Kazakhstan. Article 338. Tax Base 1. The tax base for calculating minerals extraction tax shall be the value of a taxable volume of depleted reserves of mineral resources contained in mineral stock for the tax period. For the purposes of calculating minerals extraction tax, mineral stock shall be divided into: 1) mineral stock containing only those mineral resources referred to in point 4 of this article;
2.
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2)
mineral stock containing both the mineral resources referred to in point 4 of this article and other types of mineral resources extracted and used (realised) as stipulated by the conditions of a subsoil use contract; mineral stock containing mineral resources except for the mineral resources referred to in point 4 of this article; mineral stock produced from depleted reserves (return of losses) at a deposit; mineral stock produced from off-balance reserves at a deposit.
3)
4) 5) 3.
For the purposes of calculating minerals extraction tax, the value of a taxable volume of depleted reserves of mineral resources contained in mineral stock for the tax period shall be determined: 1) for mineral resources contained in a taxable volume of depleted reserves of the mineral stock referred to in subpoint 1) of point 2 of this article based on the average exchange price for the mineral resources in question for the tax period. The average exchange price shall be determined as the arithmetic mean of daily averaged quotes for mineral resources on the London Metal Exchange and published in the journals Metal Bulletin and Metal-Pages for the tax period, using the following formula: S = (P1 + P2 +...+Pn)/n, where: S is the average exchange price for the tax period; P1, P2....Pn is the daily averaged quotes for the mineral resources; n is the number of days in the tax period on which quotes were published. The daily averaged quote price for mineral resources shall be determined using the following formula: P1, P2,....Pn = (C1 + C2)/2, where: C1 is the daily Cash quote for mineral resources; C2 is the daily Cash Settlement quote for mineral resources. The average exchange price for gold, platinum and palladium shall be determined as the arithmetic mean of daily quotes for mineral resources on the London Metal Exchange for the tax period, using the following formula: S = (P1 + P2 +...+Pn)/n, where: S is the average exchange price for the tax period; P1, P2....Pn is the daily averaged quotes for mineral resources; n is the number of days in the tax period on which quotes were published. The daily averaged quote price for mineral resources shall be determined using the following formula: P1, P2,....Pn = (C1 + C2)/2, where: C1 is the daily morning quote for mineral resources; C2 is the daily afternoon quote for mineral resources. The average exchange price for silver shall be determined as the arithmetic mean of daily quotes for silver on the London Metal Exchange for the tax period, using the following formula:
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S = (P1 + P2 +...+Pn)/n, where: S is the average exchange price for the tax period; P1, P2....Pn is the daily averaged quotes for mineral resources; n is the number of days in the tax period on which quotes were published. The average exchange price shall apply to the entire volume of each type of mineral resource contained in a taxable volume of depleted reserves of mineral stock referred to in point 4 of this article, including to a volume transferred to other legal entities and (or) structural subdivision within one legal entity for subsequent processing and (or) use for own production needs. A subsoil user shall determine the physical volume of each type of mineral resource during the tax year to pay minerals extraction tax according to mineral resource content in the taxable volume of depleted reserves of mineral resources as indicated in a local design developed based on a calendar production schedule for field development approved in accordance with the procedure established for these purposes by the relevant authorised state body of the Republic of Kazakhstan. In this respect, a subsoil user should adjust physical volumes of mineral resources taking into account updated actual taxable volumes of depleted reserves of mineral resources according to annual reporting balances of mineral resource reserves, and file an additional declaration on minerals extraction tax with the tax body at their location on or before 31 March of the year following the reporting year. An amount of minerals extraction tax that takes into account an adjustment shall be a tax obligation with respect to tax in the current tax period. A final payment of minerals extraction tax should be made on or before 15 April of the year following the reporting year; 2) the mineral resources listed in subpoint 2 of point 2 of this article: mineral resources contained in taxable volumes of depleted reserves of mineral stock listed in point 4 of this article in accordance with the procedure established by subpoint 1) of point 3 of this article; other types of mineral resources contained in taxable volumes of depleted mineral stock reserves based on their weighted average realisation price, and following a transfer to other legal entities and (or) a structural subdivision within a single legal entity for subsequent processing and (or) used for own production needs based on the actual cost of production and initial processing (enrichment) due on such types of mineral resources as determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%; 3) the mineral stock referred to in subpoint 3) of point 2 of this article based on the weighted average realisation price of mineral stock that has undergone initial processing (enrichment).
4.
The provisions of subpoint 1) of point 2 of this article shall apply in relation to those types of mineral resources that have been officially quoted during the reporting tax period on the London Metal Exchange. If mineral resources that have undergone initial processing (enrichment), except for the mineral stock referred to in subpoint 1) of point 2 of this article, and the mineral resources referred to in subpoint 2) of point 2 of this article, except for the mineral resources referred to in point 4 of this article, have not been realised, their value shall be determined based on the weighted average realisation price for the last tax period in which a realisation took place. In the total absence of a realisation of mineral stock that has undergone initial processing (enrichment) and (or) mineral resources since a contract became valid, value shall be determined for: 220
5.
6.
1)
mineral resources contained in the taxable volumes of depleted reserves of mineral stock referred to in point 4 of this article in accordance with the procedure established by subpoint 1) of point 3 of this article; other types of mineral resources contained in the taxable volumes of depleted reserves of mineral stock referred to in subpoint 2) of point 2 of this article based on the actual cost of production and initial processing (enrichment) due on such types of mineral resources as determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%; the mineral stock referred to in subpoint 3) of point 2 of this article - based on the actual cost of production and initial processing (enrichment) due on such types of mineral resources as determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%. If mineral stock that has undergone initial processing (enrichment), and mineral resources contained in the taxable volumes of depleted reserves of mineral stock referred to in subpoint 2) of point 2 of this article, except for the mineral resources referred to in point 4 of this article, are subsequently realised, a subsoil user should adjust minerals extraction tax taking into consideration the actual weighted average realisation price in the tax period in which the first realisation took place. A subsoil user should adjust minerals extraction tax for the 12-month period preceding the tax period in which the first realisation took place. In this respect, the adjustment shall be regarded as a tax obligation in the current tax period.
2)
3)
7.
For the purposes of this article the weighted average realisation price for the tax period shall be determined in accordance with the procedure established by point 2 of article 341 of this Code.
Article 339. Rates of Minerals Extraction Tax The rates of minerals extraction tax for mineral stock that has undergone initial processing (enrichment) and coal shall be as follows: No. Name of Mineral Resource Rates, % 4 17.0 3.0
1 1
2 Ferrous, non-ferrous and radioactive metal ores
3 Chromium ore (concentrate) Manganese, iron-manganese ore (concentrate) Iron ore (concentrate, pellets) Uranium (productive solution, coalmine method)
3.5 24.0
Metals
Copper Zinc Lead Gold, silver, platinum and palladium Aluminium
8.0 9.0 8.5 6.0 0.3
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Tin, nickel 3 Mineral stock containing metals Vanadium Chrome, titanium, magnesium, cobalt, tungsten, bismuth, stibium, mercury, arsenic and others 4 Mineral resources containing rare metals Niobium, lanthanum, cerium, zirconium Gallium 5 Mineral resources containing disseminated metals Selenium, tellurium, molybdenum Scandium, germanium, rubidium, caesium, cadmium, indium, thallium, hafnium, rhenium, osmium 6 7 Mineral stock containing radioactive metals Mineral stock containing non-metals Radium, thorium Black coal, brown coal, fuel slate Phosphorites Boric oxide Barite Talcum Fluorides Vollastonite Shungite Graphite and others Ornamental stone materials 8 Mineral stock containing precious stones Diamonds, rubies, sapphires, emeralds, garnet, alexandrite, red spinel, euclase, topaz, aquamarine and others Jade, lazurite, radionite, chariot, malachite, aventurine, agate, jasper, rose quartz, copper emerald, white agate and others Diamonds, emery, agate, jasper, green marble, zircon, asbestos, mica and others
6.0 4.0 6.0
7.7
1.0 7.0 6.0
5.0 0 4.0 3.5 4.5 2.0 3.0 3.5 2.0 3.5
12.0
Mineral stock containing ornamental stones
3.5
10
Mineral stock containing technical stones
2.0
Rates of minerals extraction tax for all types of mineral resources and mineral stock produced from a deposits off-balance reserves shall be paid at the rate of 0%. Rates of minerals extraction tax for rare and rare-earth metals (lithium, beryllium, tantalium, ittrium, strontium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium,
222
dysprosium, holmium, erbium, thulium, ytterbium and cassiopeium) shall be established by the Government of the Republic of Kazakhstan. 3. Minerals Extraction Tax for Commonly occurring mineral resources, Underground Water and Therapeutic Mud Article 340. Object of Taxation The object of taxation shall be the physical volume of commonly occurring mineral resources, underground water and therapeutic mud produced by a subsoil user during the tax period. Minerals extraction tax shall not be payable when: 1) underground water is reinjected into the subsoil to support formation pressure and pump out industrial water; an individual produces underground water in a land plot belonging to him based on ownership rights, the right to land use and other rights to land, provided that underground water produced is not used in business activities; underground water is produced by state institutions for own economic needs.
2)
3)
Article 341. Tax Base 1. The tax base for calculating minerals extraction tax shall be the value of commonly occurring mineral resources, underground water and therapeutic mud produced by a subsoil user during the tax period. To calculate minerals extraction tax the value of commonly occurring mineral resources, underground water and therapeutic mud produced by a subsoil user during the tax period shall be determined based on their weighted average realisation price for the tax period. The weighted average realisation price shall be determined using the following formula: P mean = (V1 r.p. x P1 r + V2 r.p. x P2 r ... + Vn r.p. x Pn r.)/V total realisation, where: V1 r.p., V2 r.p. ... Vn r.p. is the volume of each lot of commonly occurring mineral resources, underground water and therapeutic mud realised for the tax period; P1 r, P2 r ... + Pn r is the actual realisation price of commonly occurring mineral resources, underground water and therapeutic mud for each lot in the tax period; n is the number of lots of realised commonly occurring mineral resources, underground water and therapeutic mud in the tax period; V total realisation is the total volume of commonly occurring mineral resources, underground water and therapeutic mud realised during the tax period. A subsoil user shall apply the weighted average realisation price to the entire volume of commonly occurring mineral resources, underground water and therapeutic mud produced during the tax period, as well as to volumes transferred at cost to a structural subdivision within a single legal entity for further processing and (or) use for the subsoil users own production needs, including use as feed stock to produce a commercial product. 3. If no realisation of commonly occurring mineral resources, underground water and therapeutic mud took place in a reporting tax period, their value shall be determined based on the weighted average realisation price for the last tax period in which such a realisation took place. In the total absence of a realisation of commonly occurring mineral resources, underground water and therapeutic mud since a subsoil use contract came into force, their value shall be determined 223
2.
4.
based on the actual cost of production and initial processing (enrichment) determined in accordance with international financial reporting standards and the requirements of accounting and financial reporting legislation of the Republic of Kazakhstan, increased by 20%. In the event of a subsequent realisation of commonly occurring mineral resources, underground water and therapeutic mud, a subsoil user should adjust minerals extraction tax taking into account the actual weighted average realisation price in the tax period in which the first realisation took place. A subsoil user shall adjust minerals extraction tax for the 12-month period preceding the tax period in which a first realisation was made. In this respect, the adjustment amount shall be the tax obligation for the current tax period. Article 342. Rates of Minerals Extraction Tax Rates of minerals extraction tax for commonly occurring mineral resources, underground water and therapeutic mud shall be established as follows: No 1 1 Name of Mineral Resource 2 Non-metallic feed for metallurgy, moulding sand, alumina-containing rocks, (feldspar, pegmatite), limestone, dolomite, limestone-dolomite rock, limestone for the food industry Other non-metallic feed products, fire-clay, kaolin, vermiculite, sodium chloride Local construction materials, igneous porous rock (calc-sinter, slag, pumice), igneous hydrous glass and vitreous rock (pearlite, obsidian), shingle and gravel, gravel-sand mixture, gypsum, gypseous stone, obsidian, drywall, clay and mud shale (refractory and fusible clay, loam, argillite, siltstone, shale), chalk, marl, loam-cretaceous rock, siliceous rock (bergmeal, opoka, diatomite), quartzfeldspar rock, quarrystone, sedimentary, igneous and metamorphic rock (granite, basalt, diabase, marble), sand (mortar, quartz, quartz-feldspar), except moulding sand, sandstone, natural pigment, coquina Underground water, therapeutic mud Rate, (%) 3 2.5
2 3
4.7 5.6
10.6
4. Tax Period, Tax Declaration and Payment Deadline Article 343. Tax Period The tax period for minerals extraction tax shall be the calendar quarter. Article 344. Payment Deadline A taxpayer should pay tax to the budget on or before the 25th of the second month following the tax period. Article 345. Tax Declaration A subsoil user shall file a declaration for minerals extraction tax with the tax body at its location on or before the 15th of the second month following the tax period.
224
Article 346. Procedure for paying Minerals Extraction Tax, Rent Tax on the Export of Crude Oil and Gas Condensate, Royalties and the Share of the Republic of Kazakhstan in Production Sharing in Kind 1. In those cases established by point 2 of article 302 and point 3 of article 330 of this Code, and also by the provisions of the tax regimes of the contracts referred to in point 2 of article 308 of this Code, a subsoil user should transfer mineral resources to the Republic of Kazakhstan in kind as payment of minerals extraction tax, rent tax for the export of crude oil, gas condensate, royalties and the share of the Republic of Kazakhstan in production sharing. The monetary form of payment of minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, and also of royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code may be substituted temporarily, in full or in part. Minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, as well as royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code, which are payable in kind, should be the equivalent of the sum of taxes and payments calculated in monetary form in accordance with the procedure and in the amounts established by this Code and the subsoil use contracts referred to in point 2 of article 308 of this Code. The volume of mineral resources to be transferred by a subsoil user to the Republic of Kazakhstan shall be determined in accordance with the procedure established by the Government of the Republic of Kazakhstan. 4. An additional agreement stipulating that a subsoil user pay minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, and royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code in kind should make obligatory reference to: 1) the person receiving mineral resources on behalf of the state, which were transferred by a subsoil user to the Republic of Kazakhstan as minerals extraction tax, rent tax on the export of crude oil and gas condensate, royalties and the share of the Republic of Kazakhstan in production sharing in kind; the destination and conditions for supplying mineral resources transferred by a subsoil user in kind to the Republic of Kazakhstan as mineral extraction tax and rent tax on the export of crude oil and gas condensate, and royalties and the share of the Republic of Kazakhstan in production sharing.
2.
3.
2)
5.
The deadline for a subsoil user to transfer mineral resources as a payment in kind for minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, and royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code, should correspond to the deadlines for paying these taxes and payments in monetary form established by this Code and the subsoil use contracts referred to in point 2 of article 308 of this Code. In this respect, a subsoil user shall transfer mineral resources to a person receiving them on behalf of the state by the deadline for paying the taxes and payments in question, except for those cases when the state recipient establishes a later deadline for the transfer.
6.
A recipient on behalf of the state shall transfer the amount of minerals extraction tax due and rent tax on the export of crude oil and gas condensate, royalties and the share of the Republic of Kazakhstan in production sharing in monetary form within the deadlines for these payments established by this Code and the subsoil use contracts referred to in point 2 of article 308 of this Code. A recipient on behalf of the state shall check that the subsoil users transfer of the relevant volume of mineral resources is complete and on time.
7.
225
From the date a subsoil user ships the relevant volume of mineral resources the recipient of the same shall be responsible on behalf of the state for the complete and timely transfer to the budget of minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, as well as royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code, which were transferred by a subsoil user to the Republic of Kazakhstan in kind. 8. A subsoil user and recipient on behalf of the state shall file reporting with the tax bodies in its location on the size and dates for paying (transferring) minerals extraction tax and rent tax on the export of crude oil and gas condensate established by this Code, and royalties and the share of the Republic of Kazakhstan in production sharing established by the subsoil use contracts referred to in point 2 of article 308 of this Code in kind, within the deadline and in the forms established by the authorised state body.
Chapter 46. Excess profits tax

Article 347. Payers Payers of excess profits tax shall be subsoil users, except for those operating under production sharing agreements (contracts), contracts to produce commonly occurring mineral resources, underground water and therapeutic mud, and also contracts to construct and operate underground facilities not related to exploration and extraction, provided that these contracts do not stipulate the production of any other types of mineral resources. Article 348. Object of Taxation 1. The object of taxation for excess profits tax shall be the part of a subsoil users net income for each separate subsoil use contract for the tax period in which the ratio of annual aggregate income, taking into account adjustments stipulated by article 99 of this Code to deductions exceeds 1.25. A subsoil user shall determine aggregate annual income for a contractual activity for each separate subsoil use contract in accordance with the procedure established by this Code. For the purposes of excess profits tax, deductions for each subsoil use contract shall be determined as the sum of: 1) expenses deducted for corporate income tax purposes for a contractual activity in accordance with articles 100-114, 116-122 of this Code in the reporting tax period; the following expenses and losses up to: expenses actually incurred during the tax period to acquire and (or) create fixed assets, including expenses within the amount of remaining depreciation on active fixed assets and subsequent expenses on fixed assets recorded in accounting as an increase in the book value of fixed assets; subsoil users expenses subject to further deduction through depreciation in accordance with articles 111 and 112 of this Code; 3) 4. losses incurred for previous tax periods, in accordance with articles 136-137 of this Code.
2.
3.
2)
The expenses and losses referred to in subpoint 2) of point 3 of this article shall be deducted at a subsoil users discretion up to any amount (within actual expenses incurred and referred to in subpoint 2) of point 3 of this article) and in any tax period. When exercising the right established by point 4 of this article, for excess profits tax purposes in a particular tax period, a subsoil user shall remove depreciation rates deducted for corporate income tax purposes in that same period from deductions defined in accordance with point 3 of this article in relation to expenses already deducted for excess profits tax purposes in accordance with subpoint 2) of point 3 of this article. 226
5.
Article 349. Tax Base 1. The tax base shall be the part of a subsoil users net income calculated for each specific subsoil use contract in a particular tax period that exceeds 25% of the deductions stipulated by point 3 of article 348 of this Code. For the purposes of this chapter, net income shall be determined as the difference between taxable income and corporate income tax. Taxable income for the purposes of this section shall be determined as the difference between aggregate annual income and deductions stipulated by point 3 of article 348 of this Code, taking into account a reduction made in accordance with article 133 of this Code. For non-residents carrying out subsoil user operations through a permanent establishment, net income shall be additionally reduced by the tax on the net income of a permanent establishment related to the given subsoil use contract.
2.
3.
4.
Article 350. Calculation Procedure 1. Excess profits tax for the tax period shall be calculated by applying each appropriate the rate established by article 351 of this Code to the tax base as determined in accordance with article 349 of this Code for each part of a subsoil users net income that corresponds to the ratios of aggregate annual income to deductions. To apply the provisions of point 1 of this article and based on the actual ratio of aggregate annual income to deductions, a subsoil user shall: 1) determine the calculated amount of aggregate annual income corresponding to each particular ratio of aggregate annual income to deductions stipulated by article 351 of this Code as the product of total deductions calculated for the tax period in accordance with article 348 of this Code, and the respective upper ratio of aggregate annual income to deductions; based on calculated amounts of aggregate annual income determine the relevant calculated amounts of net income due on each ratio of aggregate annual income to deductions as stipulated by article 351 of this Code; allocate net income received in a particular tax period to levels that correspond to ratios of aggregate annual income to the deductions stipulated by article 351 of this Code. Calculated net income shall be determined as the difference between calculated aggregate annual income, total deductions calculated for the tax period in accordance with article 348 of this Code, and corporate income tax, inclusive of the special considerations established by point 4 of article 349 of this Code; 4) apply the appropriate rate of excess profits tax to each part of net income relating to each ratio of aggregate annual income to deductions as stipulated by article 351 of this Code.
2.
2)
3)
Article 351. Rates of Excess Profits Tax Subsoil users shall pay excess profits tax according to the following sliding scale: No. Ratio of aggregate annual income to deductions 2 less than or equal to 1.25 between 1.25 and 1.3 inclusive Tax base Rate, % 4 0 10 tax calculated at 10% 227 Tax payable to the budget 5
1 1 2
3 not taxable part of net income for the values between 1.25 and 1.3
between 1.3 and 1.4 inclusive
part of net income for the values between 1.3 and 1.4 part of net income for the values between 1.4 and 1.5
20
tax calculated at 10% and 20% tax calculated at 10%, 20% and 30% tax calculated at 10%, 20%, 30% and 40% tax calculated at 10%, 20%, 30%, 40% and 50% tax calculated at 10%, 20%, 30%, 40%, 50% and 60%
30
part of net income for the values between 1.5 and 1.6
40
part of net income for the values between 1.6 and 1.7
50
over 1.7
part of net income for the values between 1.7
60
Article 352. Tax Period The tax period for excess profits tax shall be established by article 148 of this Code. Article 353. Tax Payment Deadline Excess profits tax shall be paid on or before 15 April of the year following the tax period. Article 354. Tax Declaration A subsoil user shall file an excess profits tax declaration with the tax bodies at its location on or before 10 April of the year following the tax period.
Section 12. Social tax Chapter 47. General provisions

Article 355. Payers 1. 1) 2) 3) Payers of social tax shall be: individual entrepreneurs; private notaries and advocates; resident legal entities of the Republic of Kazakhstan, unless otherwise established by point 2 of this article; non-residents operating in the Republic of Kazakhstan through a permanent establishment.
4) 2.
A resident legal entity may decide that its structural subdivisions may be regarded as payers of social tax.
228
Article 356. Special Considerations for Payers applying Special Tax Regimes to calculate and pay Social Tax and file Tax Reporting The following payers applying special tax regimes shall calculate and pay social tax and file tax reporting: 1) legal entity agricultural manufacturers and rural consumer cooperatives taking into account the special considerations established by article 451 of this Code; small businesses on the basis of a simplified declaration in accordance with articles 433-438 of this Code; small businesses based on a patent in accordance with articles 429-432 of this Code; farms or farm holdings in accordance with articles 445-447 of this Code.
2)
3) 4)
Article 357. Object of Taxation 1. The object of taxation for the payers referred to in subpoints 3) and 4) of point 1 and point 2 of article 355 of this Code shall be employer expenses payable to resident employees in the form of income determined by point 2 of article 163 of this Code, to non-resident employees in the form of the income referred to in subpoints 18)21) of point 1 of article 192 of this Code, and also the income of foreign personnel indicated in point 10 of article 191 of this Code, except for the income referred to in point 3 of this article. If total income accrued to an employee for a calendar month is less than the minimum monthly salary set by the law on the state budget for the relevant financial year, then the object of social tax shall be the minimum salary. The income listed in subpoints 8), 10), 12), 17), 18), 24), 26), 27), 29)-32), 34) of point 1 of article 156 of this Code shall not be an object of taxation, and neither shall: 1) payments made at the expense of grants provided through countries, governments and international organisations; state premiums and scholarships instituted by the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan; monetary awards for prize places in sporting contests, shows and competitions; compensation payable if an employment agreement is terminated due to the liquidation of an organisation or termination of an employers activities, staff reductions or if an employee is called up for military service, in the amounts set by legislation of the Republic of Kazakhstan; compensation payable by an employer to employees for unused leave; employees obligatory pension contributions to pension savings funds in accordance with legislation of the Republic of Kazakhstan.
2.
3.
2)
3) 4)
5) 6)
4.
The object of taxation for the payers of social tax referred to in subpoints 1) and 2) of point 1 of article 355 of this Code shall be the number of employees, including the payers themselves. The provisions of subpoint 1) of point 3 of this article shall apply if payments are made in accordance with an agreement (contract) concluded with a grant recipient or executive appointed by the grant recipient in order to execute grant objectives (goals).
5.
Article 358. Tax Rates 1. Unless otherwise established by this article social tax shall be calculated at the rate of 11%.
229
2.
Individual entrepreneurs, except for those applying special tax regimes, private notaries and advocates shall pay social tax of twice the monthly calculation index set by the law on the state budget for the relevant financial year for themselves, and of the monthly calculation index for each employee. The provisions of this point shall not extend to taxpayers during their temporary suspension of activities in accordance with article 73 of this Code.
3.
Special organisations employing handicapped individuals with impaired support and mobility apparatus or with severe hearing, speech or sight defects, and which comply with the conditions of point 3 of article 135 of this Code, shall pay social tax of 4.5%. Social tax rates for individual entrepreneurs applying the special tax regime for farms or farm holdings has been established by article 445 of this Code. Social tax rates for payers applying special tax regimes based on a patent or simplified declaration have been established by chapter 61 of this Code.
4.
5.

Article 359. Procedure for calculating Social Tax 1. The payers referred to in subpoints 3) and 4) of point 1 of article 355 of this Code shall calculate social tax by applying the rates established in points 1 and 3 of article 358 of this Code to the object of taxation determined in accordance with point 1 of article 357 of this Code, for the tax period. Individual entrepreneurs, except for those applying special tax regimes, private notaries and advocates shall calculate social tax by applying the rates established by point 2 of article 358 of this Code to the object of taxation determined by point 4 of article 357 of this Code. Social tax shall be reduced by social contributions calculated in accordance with the Law of the Republic of Kazakhstan On Obligatory Social Insurance.
2.
3.
Article 360. Payment of Social Tax 1. Social tax shall be paid on or before the 25th of the month following the reporting month at the taxpayers location, unless otherwise established by this Code. Payers of social tax having structural subdivisions shall pay social tax in accordance with the procedure established by article 362 of this Code.
2.
Article 361. Special Considerations for State Institutions to calculate Social Tax 1. Social tax calculated by state institutions for a reporting month shall be reduced by social benefits for a temporary disability paid in accordance with legislation of the Republic of Kazakhstan. If the social benefits referred to in point 1 of this article and paid for the reporting month exceed social tax accrued, the excess shall be carried forward to the following month.
2.
Article 362. Procedure for calculating and paying Tax for Structural Subdivisions 1. Social tax payable for structural subdivisions shall be calculated based on social tax calculated on the income of the employees of the structural subdivision in question. Payers shall pay social tax for structural subdivisions to the appropriate budgets at the location of the structural subdivisions.
2.
230

Article 363. Tax Period The tax period for social tax shall be the calendar month. Article 364. Individual Income Tax and Social Tax Declaration 1. Taxpayers shall file a quarterly individual income tax and social tax declaration with the tax bodies in their location on or before the 15th of the second month following the reporting quarter, unless otherwise established by this article The appendix to an individual income tax and social tax declaration shall be compiled at the year end and filed along with the declaration for the 4th quarter of the reporting year. 2. Payers having structural subdivisions shall file an individual income tax and social tax declaration with the tax body at the location of the structural subdivision.
Section 13. Tax on means of transport Chapter 50. General provisions

Article 365. Taxpayers 1. Payers of tax on means of transport shall be individuals with ownership rights to objects of taxation, legal entities, their structural subdivisions (hereafter - legal entities) in possession of objects of taxation on the basis of ownership rights, economic jurisdiction or operational management, unless otherwise indicated in this article. The payer of tax on means of transport with respect to objects of taxation transferred (received) under a financial lease agreement shall be the lessee. The following shall not be payers of tax on means of transport: 1) payers of unified land tax with respect to the following means of transport belonging to its members jointly, or owned singularly and used directly in the process to produce, store and handle own agricultural produce: one passenger vehicle with engine size of up to 2,500 cm3 inclusive; freight vehicles with total engine capacity of 1,000 Kwt per 1,000 hectares of arable field; 2) manufacturers of agricultural produce, including payers of unified land tax, with regard to the following specialised agricultural machinery used in the production of own agricultural products: tank trucks used to transport milk or water for agricultural purposes; veterinary vehicles; motorised zoobiotic laboratories; motorised feeders; motorised loaders; automatic seeder fuelling machines; vehicles used to spread fertiliser;
2.
3.
231
motorised loaders of aeroplanes to spread mineral fertilisers and pesticides; automatic balers; automatic bait dispenser; top gathering machines; AN-2 aircraft; self-propelled harvesters; grain harvesters; wheeled tractors, self-propelled chassis and mobile power sources; fodder collectors; mobile units for the repair and technical maintenance of agricultural machinery; motorised stretchers; stack-makers; combined harvesters (to collect root crops, potatoes, tomatoes, peas, cotton and other agricultural products); 3) 4) state institutions; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War one means of transport that is an object of taxation; handicapped individuals owning cycle-cars and vehicles one vehicle treated as an object of taxation; heroes of the Soviet Union and heroes of socialist labour, individuals holding the title khalyk kaharmany, individuals awarded three classes of the order of glory and the otan order, women holding the titles altyn alkha, kumis alkha or heroine mother one means of transport that is an object of taxation; individuals freight automobiles used for more than 7 years and which were received as a share on their withdrawal from an agricultural formation. Objects of Taxation
5)
6)
7)
Article 366. 1.
Objects of taxation shall be any means of transport, except for trailers, subject to state registration and (or) registered in the Republic of Kazakhstan. The following shall not be objects of taxation: 1) 2) quarry dump trucks with a load-carrying capacity of 40 tonnes and over; specialised medical means of transport.
2.
232
Chapter 51. Tax rates, procedure for calculating and paying tax
Article 367. Tax Rates 1. Tax shall be calculated at the following rates established as multiples of the monthly calculation index: No. Object of Taxation Tax rate (monthly calculation index) 3
1 1
2 Passenger cars with engine capacity (in cm3) of: up to 1,100 inclusive between 1,100 and 1,500 inclusive between 1,500 and 2,000 inclusive between 2,000 and 2,500 inclusive between 2,500 and 3,000 inclusive between 3,000 and 4,000 inclusive over 4,000 Freight and special automobiles with a load-carrying capacity (excluding trailers) of: up to 1 tonne inclusive between 1 tonne and 1.5 tonnes inclusive between 1.5 tonnes and 5 tonnes inclusive over 5 tonnes Self-propelled machines and pneumatically driven mechanisms, except for machines and mechanisms on caterpillar tracks Buses: up to 12 seating places inclusive between 12 and 25 seating places inclusive over 25 seating places Motorcycles, motor scooters, motor sledges, small vessels with engine capacity below 55 kW Motorcycles with engine capacity of over 55kW Launches, vessels, tugboats, barges, yachts (engine capacity in horsepower): up to 160 inclusive between 160 and 500 inclusive between 500 and 1,000 inclusive over 1,000 Aircraft
1 2 3 5 8 15 117
3 5 7 9 3
9 14 20 1
10
6 18 32 55 4% of the monthly calculation index from each kilowatt of power
2.
Where cars have engine capacity of between 1,500cm3 and 2,000cm3 inclusive, which is taxable at the rate of 3 times the monthly calculation index, engine capacity of between 2,000cm3 and 2,500cm3, which is taxable at the rate of 5 times the monthly calculation index, engine capacity of between 2,500cm3 and 3,000cm3, which is taxable at the rate of 8 times the monthly calculation index and engine capacity of between 3,000cm3 and 4,000cm3, which is taxable at the rate of 15 times the monthly calculation index, the amount of tax shall be increased by 7 tenge for each unit by which the stated volume is exceeded.
233
3.
Depending on the period of use, the following adjustment coefficients shall apply to tax rates for aircraft: 1) for aircraft purchased after 1 April 1999 outside of the Republic of Kazakhstan: used for between 5 and 15 years inclusive - 2.0 used for more than 15 years - 3.0; 2) for aircraft purchased before 1 April 1999, and also those purchased after 1 April 1999 and (or) in operation in the Republic of Kazakhstan before 1 April 1999: used for between 5 and 15 years inclusive - 0.5 used for more than 15 years - 0.3 The period of use of a means of transport shall be calculated based on its year of manufacture as indicated in the vehicle log book (aircraft flight operation manual).
Article 368. Tax Calculation Procedure 1. Taxpayers shall calculate tax for the tax period themselves, based on objects of taxation and the tax rate for each means of transport. Taxpayers applying the special tax regime for legal entity agricultural manufacturers and rural consumer cooperatives shall calculate tax taking into account the special considerations established by article 451 of this Code. If a means of transport is held under ownership rights, the right to commercial management or operation for less than a tax period, tax shall be calculated for the actual period the arithmetic means of transport is held under ownership rights, the right to commercial management or operation by means of dividing the annual tax by 12 and multiplying by the number of months the arithmetic means of transport is actually held under ownership rights, the right to commercial management or operation. 2. Unless otherwise stipulated by this article, when individual entrepreneurs, private notaries and advocates transfer ownership of objects of taxation used during their activities, and likewise when legal entities transfer ownership rights, the right to commercial management or the operation of objects of taxation during a tax period, tax shall be calculated in accordance with the following procedure: 1) for the transferring party: for a means of transport owned at the beginning of a tax period, tax shall be calculated from the beginning of the tax period until the first of the month in which the ownership right, right to commercial management or operation of the arithmetic means of transport was transferred; for a means of transport purchased during a tax period, tax shall be calculated from the first of the month in which the ownership right, the right to commercial management or operation of the arithmetic means of transport was acquired, until the first of the month in which the ownership right, the right to commercial management or operation of the arithmetic means of transport was transferred; 2) for the acquiring party tax shall be calculated for the period from the first of the month in which the ownership right, the right to commercial management or operation of the arithmetic means of transport was acquired, until the end of the tax period or until the first of the month in which the acquiring party transferred the ownership right, the right to commercial management or operation of the arithmetic means of transport in question.
3.
When individuals who are not individual entrepreneurs, private notaries or advocates transfer ownership rights to objects of taxation during a tax period, tax shall be calculated in accordance with the following procedure: 234
1)
when transferring ownership rights to a means of transport to individuals who are not individual entrepreneurs, private notaries or advocates, annual tax shall be calculated and paid to the budget by one of the parties (by mutual agreement); when transferring ownership rights to a means of transport to individual entrepreneurs, private notaries agents, advocates or legal entities, tax subject to payment to the budget shall be calculated in accordance with the procedure established by point 2 of this article.
2)
4.
When purchasing a means of transport that has not been registered in the Republic of Kazakhstan at the moment of purchase, tax shall be calculated for the period from the 1st of the month in which ownership rights, the right to commercial management or operation of the arithmetic means of transport arose, until the end of the tax period. When a means of transport that has been stolen from its owner is de-registered with the authorised state body for the registration of vehicles, the basis for exempting the vehicle from tax for the period the vehicle is missing shall be a document confirming that the vehicle has been deregistered for that reason. Tax obligations shall be fulfilled in accordance with the procedure stipulated by chapter 51 of this Code from the moment the missing vehicle is returned to its owner.
5.
6.
Article 369. Tax Payment Deadline 1. Legal persons shall pay tax to the budget in the place of registration of the objects of taxation by making current payments on or before 5 July of the tax period, unless otherwise established by this article for means of transport held under ownership rights, the right to commercial management and operation as at 1 July. If legal entities acquire ownership rights to, the right to commercial management and operation of a means of transport already registered in the Republic of Kazakhstan, they shall pay tax to the budget after 1 July of the tax period for the arithmetic means of transport in question by no later than 10 calendar days after the deadline for filing a declaration for the tax period. Individuals shall pay tax to the budget in the place of registration of the objects of taxation on or before 1 October of the tax period for means of transport under ownership rights, the right to commercial management and operation before 1 October. If ownership rights, the right to commercial management and operation of a means of transport referred to in point 4 of article 368 of this Code arose after 1 October of a tax period, tax shall be paid to the budget before or at the moment of the state registration of the arithmetic means of transport. The payment of tax on a means of transport by a person that holds a means of transport under a trust management arrangement or on behalf of the owner of the arithmetic means of transport, shall mean that the tax obligation of the owner of the arithmetic means of transport has been fulfilled for the tax period in question.
2.
3.
4.
5.

Article 370. Tax Period The tax period for calculating and paying tax on means of transport shall be determined according to article 148 of this Code. Article 371. Tax Reporting Legal entity payers shall file a statement of current payments with the tax bodies in the place of registration of the objects of taxation for tax on a means of transport on or before 5 July of the current tax period, and likewise a declaration on or before 31 March of the year following the reporting year. 235
Section 14. Land tax Chapter 53. General provisions

Article 372. General Provisions 1. For taxation purposes, all land shall be assessed according to its designated purpose and whether it belongs to one the following categories: 1) 2) 3) agricultural land; land in populated areas; land designated for industrial, transportation, communications, defence and other nonagricultural purposes (hereafter - industrial land); specially protected natural territories and land set aside for health, recreational, historical or cultural purposes (hereafter - land designated as a specially protected natural site); land of the forestry reserve; land of the water reserve; reserve land.
4)
5) 6) 7) 2.
A particular category of land shall be established by land legislation of the Republic of Kazakhstan. For taxation purposes, land in populated areas shall be divided into two groups: 1) land of populated areas, except for land occupied by the housing fund and associated constructions and structures; land occupied by the housing fund and associated constructions and structures.
2) 3.
Tax shall not be levied on the following categories of land: 1) 2) 3) 4) land designated as a specially protected natural site; land of the forestry reserve; land of the water reserve; reserve land. The above-mentioned land (other than reserve land) shall be subject to tax in accordance with the procedure established by article 385 of this Code if it is transferred to the permanent use of land or initial free of charge temporary use of land regimes.
4.
The size of land tax shall not depend on the results of economic activities performed by a proprietor of land or user of land. Land tax shall be calculated on the basis of: 1) documents certifying ownership rights, the right to the permanent use of land or the right to the temporary use of land free of charge; state-held information provided by land resource authorities as at 1 January of a given year regarding the quantity and quality of land.
5.
2)
236
Article 373. Payers 1. Payers of land tax shall be individuals and legal entities with objects of taxation under: 1) 2) 3) 2. ownership rights; a right to the permanent use of land; a right to the initial temporary use of land free of charge.
According to a decision of a legal entity, its structural subdivisions shall be regarded as payers of land tax (hereafter - legal entities). The following shall not be payers of land tax: 1) payers of unified land tax for land plots used in activities for which the special tax regime for farms and farm holdings is applicable; state institutions; state enterprises serving as correctional institutions under the authorised body for the fulfilment of criminal punishment; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and one of the parents of an individual handicapped since childhood for: land plots occupied by the housing fund, including associated constructions and structures; land plots attached to housing; land plots supplied for personal domestic (subsidiary) work, gardening or dacha construction, including land occupied by buildings; land plots occupied by garages; 5) mother with many children holding the title Heroine Mother or Altyn alkha in respect of land plots occupied by the housing fund and associated constructions and structures, and land plots adjoining dwellings; pensioners living alone for land plots occupied by the housing fund, including associated constructions and structures; religious associations.
3.
2) 3)
4)
6)
7) 4.
The taxpayers referred to in subpoints 3) and 7) of point 3 of this article shall not be exempt from paying tax on land plots transferred for use or lease.
Article 374. Definition of Payer in Specific Cases 1. Where a land plot is under the common ownership (use) of several persons, except for a land plot comprising the assets of a mutual investment fund, each of these persons shall be a payer of land tax unless otherwise stipulated in documents certifying the right to hold or use the said land plots, or by an agreement between the parties. A payer of land tax for a land plot making up the assets of a mutual investment fund shall be the managing company of the mutual investment fund. 237
2.
In the absence of documents confirming rights to a land plot, the basis for acknowledging a user as the payer of land tax for the given land plot shall be actual proprietorship or use of the plot in question. The payer of land tax for a land plot transferred (received) to financial lease together with a real estate in accordance with a financial lease agreement, shall be the lessee.
3.
Article 375. Object of Taxation 1. The object of taxation shall be a land plot (or, where a land plot is under common shared ownership, the object of taxation shall be the share in that land plot). The following shall not be objects of taxation: 1) public land in populated areas. Public land in populated areas shall include land occupied by, or to be occupied by squares, streets, thoroughfares, roads, embankments, parks, public gardens, boulevards, reservoirs, beaches, cemeteries and other facilities designed to meet the needs of the general public (water-pipes, heating pipes, electricity lines, treatment facilities, ash dumps, heating lines and other engineering structures for public use); 2) land plots occupied by the state public highway network. Land occupied by the state public highway network shall include embankments, junctions, overpasses, artificial structures, roadside drainage channels and other road maintenance structures, official buildings or residential premises making up to road services, snow protection facilities and decorative plantations; 3) land plots occupied by facilities temporarily shut down by decision of the Government of the Republic of Kazakhstan; land plots acquired to incorporate houses for rent.
2.
4)
Article 376. Definition of an Object of Taxation in Specific Cases 1. The object of taxation for railway transport organisations shall be land plots provided in accordance with the procedure established by legislation of the Republic of Kazakhstan as railway facilities and shall include land plots occupied by railway tracks, rights of way, stations and terminals. The object of taxation for power engineering and power supply organisations with power transmission lines listed on their balance sheets, shall be land plots granted to those organisations in accordance with the procedure established by legislation of the Republic of Kazakhstan and shall include land plots occupied by power transmission lines and booster substations. The object of taxation for organisations engaging in the production and transportation of oil and gas with oil and gas pipelines listed on their balance sheets, shall be land plots granted to those organisations in accordance with the legislative procedure and shall include land plots occupied by the oil and gas pipelines. The object of taxation for communications organisations with radio relay, overhead and cable communication lines, shall be land plots granted to those organisations in accordance with the procedure established by legislation of the Republic of Kazakhstan and shall include land plots occupied by communication line supports.
2.
3.
4.
Article 377. Tax Base The tax base for determining land tax shall be the area of a land plot.
238
Chapter 54. Tax rates

Article 378. Base Tax Rates for Agricultural Land 1. Base land tax rates for agricultural land shall be established per hectare and differentiated according to soil quality. The following base tax rates for land tax shall be established in proportion to the quality score attributed to steppe and dry-steppe zone land: Basic tax rate (tenge) Quality index number 3 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Basic tax rate (tenge)
2.
Quality index number
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
2 0.48 0.67 0.87 1.06 1.25 1.45 1.68 1.93 2.16 2.41 2.89 3.09 3.28 3.47 3.67 3.86 4.09 4.34 4.57 4.82 5.31 5.79
4 43.42 44.49 45.55 46.65 47.71 48.77 49.83 50.95 52.01 53.07 57.90 60.63 63.26 65.95 68.61 71.31 73.96 76.66 79.32 82.02 86.85 89.55
239
23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
6.27 6.75 7.24 7.72 8.20 8.68 9.17 9.65 14.47 15.54 16.59 18.08 18.76 19.82 20.88 22.00 23.06 24.12 28.95 30.01 31.07 32.17 33.23 34.29 35.36 36.48 37.54 38.60
73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Over 100
92.19 94.89 97.56 100.26 102.91 105.61 108.27 110.97 115.80 119.02 122.21 125.45 128.67 131.86 135.10 138.32 141.51 144.75 149.57 154.40 159.22 164.05 168.87 173.70 178.52 183.35 188.17 193.00 202.65
3.
The following base tax rates for land tax shall be established in proportion to the quality score attributed to semi-steppe, desert and piedmont and desert zone land: 240
Quality index number
Basic tax rate (tenge)
Quality index number 3 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78
Basic tax rate (tenge)
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
2 0.48 0.54 0.58 0.62 0.67 0.73 0.77 0.81 0.87 0.96 1.45 1.83 2.22 2.55 2.93 3.32 3.71 4.05 4.44 4.82 5.31 5.79 6.27 6.75 7.24 7.72 8.20 8.68
4 19.78 20.26 20.75 21.23 21.71 22.19 22.68 23.16 23.64 24.12 24.61 25.28 25.82 26.44 27.02 27.64 28.22 28.85 29.49 30.07 30.69 31.27 31.88 32.46 33.09 33.68 34.31 34.93
241
29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
9.17 9.65 10.13 10.61 11.09 11.58 12.06 12.54 13.03 13.51 13.99 14.47 14.96 15.44 15.92 16.40 16.89 17.37 17.85 18.33 18.82 19.30
79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Over 100
35.51 36.15 36.71 37.34 37.92 38.56 39.18 39.76 40.38 40.95 41.59 42.17 42.18 43.39 44.00 44.62 45.20 45.84 46.38 47.03 47.61 48.25 50.18
Article 379. Base Tax Rates for Agricultural Land provided to Individuals The base tax rates for agricultural land provided to individuals to maintain a private (subsidiary) business, gardening plot or for dacha construction, including land to be occupied by buildings, shall be established at the following rates: 1) 2) for areas of up to 0.50 hectares inclusive - 20 tenge per 0.01 hectares; for areas exceeding 0.50 hectares - 100 tenge per 0.01 hectares.
242
Article 380. Tax Rates for Non-Agricultural Land used for Agricultural Purposes Land plots that are part of land in populated areas, industrial land, specially protected natural sites, land of the forestry and water reserves, which is used for agricultural purposes, shall be taxed according to the basic rates established by article 378 of this Code, taking into account the provisions of point 1 of article 387 of this Code.
Article 381. Base Tax Rates for Land in Populated Areas (Except for Land Plots Adjoining Dwellings) The base tax rates for land in populated areas (except for land plots adjoining dwellings) shall be established per square metre of area and at the following rates: Type of populated area Base tax rates for land in populated areas, but not housing fund land, related constructions and structures (tenge) 2 Base land tax rates for housing fund land, including related constructions and structures (tenge) 3
1 Towns: Almaty Astana Aktau Aktobe Atyrau Karaganda Kyzylorda Kokshetau Kostanai Pavlodar Petropavlovsk Taldykorgan Taraz Uralsk Ust-Kamenogorsk Shymkent Almaty Oblast: Towns of oblast status
28.95 19.30 9.65 6.75 8.20 9.65 8.68 5.79 6.27 9.65 5.79 9.17 9.17 5.79 9.65 9.17
0.96 0.96 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58 0.58
6.75
0.39
243
Towns of district status Akmola Oblast: Towns of oblast status Towns of district status Other towns of oblast status Other towns of district status Settlements Villages (auls)
5.79
0.39
5.79 5.02 85% of the rate established for the oblast centre 75% of the rate established for the oblast centre 0.96 0.48
0.39 0.39 0.39
0.19
0.13 0.09
Article 382. Base Tax Rates for Land Plots Adjoining Dwellings A land plot adjoining a dwelling shall mean a part of a land plot attributable to land in populated areas to maintain a residential building, and which does not belong to the housing fund, and its related constructions and structures. Plots of land adjoining dwellings shall be taxable at the following basic tax rates: 1) for the cities of Astana and Almaty, and other towns of oblast status: for areas of up to and including 1,000m2 - 0.20 tenge per m2 for areas exceeding 1,000m2 - 6.00 tenge m2 The tax rates for land plots exceeding 1,000m2 may be reduced from 6.00 to 0.20 tenge per m2 by decision of the local representative bodies; 2) for all other populated areas : for an area of up to and included 5,000m2 - 0.20 tenge per m2; for an area exceeding 5,000m2 - 1.00 tenge per m2 The rates of tax for land plots exceeding 5,000m2 may be reduced from 1.00 to 0.20 tenge per m2 by decision of local representative bodies.
Article 383. Base Tax Rates for Industrial Land Located Outside of Populated Areas 1. The base tax rates for industrial land located outside of populated areas shall be set per hectare at the following rates with respect to the land quality score: Basic tax rate (tenge) Land Quality Index Number 3 Basic tax rate (tenge)
Land Quality Index Number 1
244
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
48.25 91.67 135.10 178.52 221.95 265.37 308.80 352.22 395.65 439.07 482.50 530.75 592.41 654.08 715.68 777.35 839.01 900.67 962.29 1,023.96 1,084.66 1,138.70 1,189.07 1,239.35 1,287.73 1,340.29 1,390.66 1,441.07 1,491.45 1,541.88 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 2,634.45 2,690.23 2,745.95 2,801.72 2,857.46 2,913.24 2,968.96 3,024.73 3,080.47 3,136.25 3,188.36 3,247.75 3,325.49 3,364.61 3,423.05 3,489.25 3,539.95 3,598.39 3,656.81 3,715.25 3,769.29 3,829.64 3,890.53 3,951.67 4,012.79 4,073.88 4,135.02 4,196.15 4,257.23
245
30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
1,592.25 1,646.29 1,693.03 1,740.76 1,788.47 1,836.20 1,883.87 1,931.58 1,979.31 2,027.02 2,074.75 2,126.86 2,178.19 2,228.61 2,278.98 2,329.41 2,379.79 2,340.22 2,480.57 2,531.00 2,582.34
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 Over 100
4,319.34 4,371.45 4,432.57 4,493.66 4,554.80 4,615.92 4,677.01 4,738.15 4,799.27 4,860.36 4,921.50 4,975.54 5,054.48 5,134.32 5,214.22 5,294.09 5,373.99 5,453.83 5,533.73 5,613.59 5,693.50 5,790.00
2.
Land provided for defence purposes, except for land temporarily used by other land users in accordance with land legislation of the Republic of Kazakhstan, shall be subject to taxation at the rates established by point 1 of this article. Land provided for defence purposes, but temporarily not in use for that purpose and which has been granted to other land users for agricultural purposes, shall be subject to tax at the rates established by article 378, taking into account the conditions of point 1 of article 387 of this Code. Land belonging to railway enterprises and occupied by protective forest plantations alongside main railway routes shall be subject to tax at the rates established by article 378, taking into account the conditions of point 1 of article 387 of this Code.
3.
4.
246
Article 384. Tax Rates for Industrial Land in Populated Areas 1. Industrial land (including mines and quarries) and their buffer areas, technical and other zones within the boundaries of populated areas (except for the land referred to in point 3 of this article) shall be taxed at the base rates established by article 381 of this Code, taking into account the conditions of point 1 of article 387 of this Code. The base rates for industrial land (including mines and quarries) and their buffer, technical and other zones within the boundaries of populated areas, but outside of residential areas (except for the land referred to in point 3 of this article) may be reduced by decision of the local representative bodies. An overall reduction of tax rates on the above-mentioned land, taking into account the reduction established in point 1 of article 387 of this Code, should not exceed 30% of the base rate. Industrial land within the boundaries of a populated area and occupied by aerodromes, shall be taxed at the base rates set by article 383 of this Code, taking into account the conditions of point 1 of article 387 of this Code. Industrial land situated within the boundaries of a populated area and occupied by airports, except for land occupied by aerodromes, shall be taxed at the base rates set by article 381 of this Code, taking into account the conditions of point 1 of article 387 of this Code. For the purposes of this Code, an aerodrome shall be understood to mean a land plot specially prepared and equipped to provide for the take-off, landing, taxiing, parking and servicing of aircraft.
2.
3.
Article 385. Tax Rates for Specially Protected Natural Sites, Forestry and Water Reserve Land 1. Specially protected natural sites, forestry or water reserve land used for agricultural purposes shall be subject to land tax at the base rates established by article 378, taking into account the conditions of point 1 of article 387 of this Code. Specially protected natural sites, forestry and water reserve land provided to individuals and legal entities for purposes other than for agricultural use, shall be taxed at the rates set by article 383, taking into account the provisions of point 1 of article 387 of this Code.
2.
Article 386. Tax Rates for Land Plots occupied by Parking Lots, Filling Stations and Casinos 1. Land in populated areas allocated to parking lots and filling stations shall be subject to tax at the base rates for land in populated areas, except for land occupied by the housing fund and its related constructions and structures, as established by article 381 of this Code, and multiplied by a factor of 10. Other categories of land allocated to parking lots and filling stations shall be subject to tax at the base rates for land in populated areas, except for land occupied by the housing fund and its related constructions and structures, set for land in the closest populated area by article 381 of this Code, and multiplied by a factor of 10. The base rates of a populated area applied to calculate tax shall be set by the local representative bodies. By decision of a local representative body, tax rates may be reduced, but not to below those rates set by article 381 of this Code. 2. Land in populated areas occupied by casinos shall be taxed at the base rates for land in populated areas set by article 381 of this Code, and multiplied by 10. Other land categories occupied by casinos shall be taxed at the base rates for land in populated areas, except for land occupied by the housing fund, including associated structures and constructions, as established for land of the closest populated area by article 381 of this Code, multiplied by 10.
247
The base rates for land in a populated area used to calculate tax shall be set by local representative bodies. According to a decision of local representative bodies, tax rates may be reduced, but should be no less than those set by article 381 of this Code.
Article 387. Adjustment to Base Tax Rates 1. Local representative bodies shall have the right, on the basis of land zoning plans (schemes) conducted in accordance with land legislation of the Republic of Kazakhstan, to reduce or increase land tax rates by no more than 50% of base land tax rates set by articles 378, 379, 381 and 383 of this Code, except for land allocated for parking lots, filling stations and casinos. However, it shall be forbidden to reduce or increase land tax rates on an individual basis for specific taxpayers. 2. For the purposes of calculating tax, the following payers shall apply a coefficient of 0.1 to the relevant rates: 1) 2) 3) 4) childrens health institutions; the legal entities specified in article 134 of this Code, except for religious associations; the legal entities specified in point 2 of article 135 of this Code; state enterprises whose primary activities relate to anti-forest fire management; combating forest fires, pest and diseases; replacing natural biological resources and raising the ecological potential of forests; state enterprises engaging in fish production; the state enterprise responsible for the state certification of scientific personnel; work-therapy enterprises of institutions for individuals suffering from psycho neurological illnesses and tuberculosis.
5) 6) 7)
3.
The legal entities determined in point 3 of article 135 of this Code shall apply the coefficient 0 to the relevant rates to calculate tax. The payers of land tax indicated in point 2 of this article, when leasing a land plot or a part of it (together with buildings, constructions and structures or without them) or for use under other conditions, or when using it for commercial purposes, shall calculate tax without applying the 0.1 coefficient, in accordance with the procedure established by chapter 55. Organisations operating in special economic zones shall calculate land tax, taking into account the provisions established by subpoint 1) of point 3 of article 151 of this Code.
4.
5.
Chapter 55. Procedure for calculating tax and the tax payment deadline
Article 388. General Procedure for calculating and paying Tax 1. Tax shall be calculated by applying the appropriate tax rate to the tax base separately for each land plot. Taxpayers applying the special tax regime for legal entity manufacturers of agricultural products and rural consumer cooperatives shall calculate tax taking into account the special considerations established by article 451 of this Code.
248
2.
Land tax shall be calculated beginning from the month following the month in which a taxpayer is granted a land plot, unless otherwise established by this Code. If the right to proprietorship or use a land plot is terminated, land tax shall be calculated for the actual period the land plot is used. Land tax shall be paid to the budget according to the location of the land plot. Where a populated area is reclassified from one category of populated area to another during a tax year, land tax shall be collected from taxpayers in the current year at the rates previously set for those populated areas and in the following year at the rates established for the new category of populated area. Where a populated area is abolished and its territory is included in another populated area, a new tax rate shall apply to the territory of the abolished populated area from the year following that in which the abolition took place. Where it is impossible to determine the quality index number of a land plot occupied by taxpayers, the land tax rate shall be determined on the basis of the quality index number of adjacent land. In the case of objects of taxation under common shared ownership, tax shall be calculated in proportion to the share of land held.
3.
4. 5.
6.
7.
8.
Article 389. Procedure for Legal Entities to calculate Tax and Payment Deadline 1. Legal persons shall calculate land tax themselves by applying the appropriate tax rate to the tax base. Legal persons should calculate and make current land tax payments during a tax period. Current payments shall be made in equal portions on or before 25 February, 25 May, 25 August and 25 November of the current year. For newly created taxpayers, the first deadline to make current payments shall be the next regular deadline following the date the taxpayer was created. Taxpayers created after the final deadline to make current payments shall pay tax for the current tax period within the deadline stipulated by point 9 of this article. 4. Current payments shall be determined by applying the appropriate tax rates to the tax base with respect to objects of taxation as at the beginning of the tax period. Where tax obligations arise during a tax period, the first deadline for current tax payments shall be the regular deadline established by point 3 of this article following the date on which the tax obligation to pay land tax arises. Where the legal entities referred to in subpoints 3) and 7) of point 3 of article 373 of this Code transfer objects of taxation for use or lease, the first deadline to make current tax payments shall be the deadline following the date on which the objects of taxation are transferred for use or lease. 6. Where tax obligations arise after a final deadline to make a current payment, a final tax calculation and payment shall be made within the deadlines stipulated in point 9 of this article. For objects of taxation transferred for use or lease by the legal entities indicated in subpoints 3) and 7) of point 3 of article 373 of this Code after the final deadline for making current payments, a final tax calculation and payment shall be made within the deadline stipulated in point 9 of this article. 7. Where tax obligations to pay land tax are changed during a tax year, current payments shall be adjusted by the correction to payment obligations in equal parts for forthcoming land tax payment deadlines. 249
2. 3.
5.
8.
Where the rights to objects of taxation are transferred during a tax period, tax shall be calculated for the actual period during which rights to a land plot were exercised. Tax subject to payment for the actual period of possession of a land plot by a person transferring these rights, should be paid to the budget before or at the moment of the state registration of rights. In this respect, the initial payer shall calculate tax from 1 January of the current year until the start of the month in which it transfers the land plot. The next payer shall calculate tax from the start of the month in which the right to the land plot arose. Following the state registration of rights to a land plot, annual tax may be transferred to the budget by one of the given parties (by arrangement). Tax paid following the state registration of rights to land plots shall not be paid twice.
9.
A taxpayer shall make a final calculation and shall pay land tax no later than 10 calendar days following the deadline for filing a declaration for the tax period.
Article 390. Specific Details of the Calculation of Tax in Specific Cases 1. For land plots on which buildings, constructions and structures used by several taxpayers are situated, land tax shall be calculated separately for each taxpayer in proportion to the area of the buildings and structures used by them individually. When the legal entities referred to in subpoints 3) and 7) of point 3 of article 373 of this Code lease a part of a building, construction and structure, land tax shall be calculated based on the proportion of the area of the premises leased against the total area of all buildings, constructions and structures on the land plot in question. Where a legal entity acquires immovable property belonging to the housing fund, land tax shall be calculated at the base rate for land in populated areas, except for land occupied by the housing fund and its related constructions and structures, as established by article 381 of this Code.
2.
3.
Article 391. Procedure for Individual to calculate Tax and the tax Payment Deadline 1. The tax bodies shall calculate land tax for payment by individuals (except for individual entrepreneurs, private notaries and advocates with respect to land used in their activities) based on the appropriate tax rates and tax base on or before 1 August. If during a tax period the rights to objects of taxation are transferred, tax shall be calculated taking into account the provisions of point 8 of article 389 of this Code. Individuals (except for individual entrepreneurs, private notaries and advocates with respect to land used in their activities) shall pay land tax to the budget on or before 1 October of the current year. When a tax obligation arises after 1 October of the current year tax shall be paid no later than 30 working days after the state registration of ownership rights to the object of taxation. Individual entrepreneurs, private notaries and advocates shall calculate and pay land tax for land plots used in their activities in accordance with the procedure stipulated in article 389 of this Code.
2.
3.
4.
5.
Chapter 56. Tax period and tax reporting

Article 392. Tax Period The tax period for calculating and paying land tax shall be determined by article 148 of this Code. Article 393. Tax Reporting 1. Legal persons (except for state institutions), individual entrepreneurs, private notaries and advocates shall file land tax declarations with the tax bodies at the location of objects of taxation on 250
or before 31 March of the year following the reporting tax period, as well as a statement of current payments within the deadline established in this article. 2. A statement of current land tax payments shall be filed on or before 15 February of the current tax period. Newly created taxpayers, except for taxpayers created after the final deadline to make current payments, shall file a statement of current payments on or before the 15th of the month following the month the taxpayers make a record of registration. The legal entities referred to in subpoints 3) and 7) of point 3 of article 373 of this Code shall file a statement of current payments with respect to objects of taxation transferred for use or leased within the deadline stipulated in point 5 of this article. When land tax obligations change during the tax period, a statement of current payments shall be filed on or before 15 February, 15 May, 15 August and 15 November of the current tax period for objects of taxation as at 1 February, 1 May, 1 August and 1 November accordingly.
3.
4.
5.
Section 15. Property tax Chapter 57. Tax on the property of legal entities and individual entrepreneurs
Article 394. Taxpayers 1. Payers of property tax shall be: 1) legal entities holding objects of taxation on the basis of ownership rights, economic control or operating management in the Republic of Kazakhstan; individual entrepreneurs holding objects of taxation on the basis of ownership rights in the Republic of Kazakhstan; a concessionaire holding or using an object of taxation that is a concession objects under a concession agreement.
2)
3)
2.
According to a decision of a legal entity with objects of taxation under the rights established by subpoint 1) of point 1 of this article, its structural subdivisions shall be considered as independent payers of tax. The taxpayers referred to in point 2 of this article shall calculate and pay property tax in accordance with the procedure established by this chapter for legal entities. The following shall not be payers of property tax: 1) payers of unified land tax in respect of objects of taxation held under ownership rights, and which are directly used to produce, store and process own agricultural productions. Payers of unified land tax shall pay property tax in accordance with the procedure established by this section on objects of taxation not used directly to produce, store and process own agricultural products; 2) 3) state institutions; state correctional institutions of the authorised state body for the fulfilment of criminal punishment; religious associations.
3.
4.
4)
251
The legal entities referred to in subpoint 3) of this point shall not be exempt from paying tax on objects of taxation transferred for use or lease. Article 395. Definition of Taxpayers in Specific Cases 1. Where an owner places objects of taxation into trust, the taxpayer shall be determined in accordance with articles 35 and 36 of this Code. In this respect, the payment of tax by a trust manager or lessee shall constitute the fulfilment of the owners tax obligation for an object of taxation for the reporting period. If objects of taxation are under the common shared ownership of several persons except for objects of taxation comprising the assets of a mutual investment fund, each of those persons shall be recognised as a payer of tax. If objects of taxation are under common collective ownership, one of the owners of the objects of taxation may be nominated as the payer of tax for these objects of taxation by mutual agreement of the parties. The payer of tax in respect of objects placed into financial leasing shall be the lessee. The payer of tax on objects of taxation making up the assets of a mutual investment fund shall be the managing company of the mutual investment fund.
2.
3.
4.
5. 6.
Article 396. Object of Taxation 1. The object of taxation for legal entities and individual entrepreneurs shall be buildings, structures, residential structures, premises and other structures firmly connected to the ground (hereafter buildings) in the Republic of Kazakhstan, which are tangible assets or real estate investments. The following shall not be objects of taxation: 1) land regarded as an object of taxation subject to land tax in accordance with articles 375 and 376 of this Code; buildings temporarily shut down in accordance with a decision of the Government of the Republic of Kazakhstan; state public highways and road structures: public rights of way; constructional road features; road installations and facilities; bridges; drainage canals; viaducts; traffic junctions; tunnels; culverts; structures and devices intended to increase road traffic safety; drainage and water flow structures;
2.
2)
3)
252
forestry bordering the highway; linear housing and road operating services; 4) construction in progress.
Article 397. Tax Base 1. Unless otherwise established by this article, the tax base for legal entities and individual entrepreneurs objects of taxation shall be the average annual book value of the objects of taxation, as determined by accounting data. The average annual book value of objects of taxation shall be determined as one thirteenth of the amount obtained from adding the book values of the objects of taxation on the 1st day of each month of the current tax period and the 1st of the month of the period following the reporting period. The book value of objects of taxation shall not include estimated liabilities (estimated disassembly cost, asset withdrawal and site rehabilitation), as determined in a subsoil use contract. 3. For the objects of taxation of the legal entities referred to in subpoint 3) of point 4 of article 394 of this Code, the tax base shall be based on the portion of those objects of taxation leased or transferred for use. The tax base for objects of taxation belonging to individual entrepreneurs applying the special tax regime based on a patent shall be the purchase value of the objects of taxation. In the absence of any purchase value, the tax base shall be the market value according to a valuation carried out under an agreement between an appraiser and taxpayer in accordance with legislation of the Republic of Kazakhstan on valuation activities. Article 398. Tax Rates 1. Legal persons (except for those indicated in points 2 and 3 of this article) shall calculate property tax at the rate of 1.5% of the average annual value of objects of taxation. Individual entrepreneurs and legal entities applying the simplified declaration special tax regime shall calculate property tax at the rate of 0.5% of the average annual value of objects of taxation. The legal entities indicated below shall calculate property tax at the rate of 0.1% of the average annual value of objects of taxation: 1) 2) 3) 4) 5) the legal entities specified in article 134 of this Code, except for religious associations; the legal entities specified in article 135 of this Code; organisations whose primary activity is to perform library work (services); state enterprises operating in the state certification of scientific personnel; legal entities responsible for reservoirs, hydraulic power systems and other water management and environmental protection structures under state ownership and financed from state budget resources; legal entities in relation to objects of irrigation and drainage structures used to irrigate the land of legal entity agriculture producers and farm holdings; legal entities operating drinking water supply facilities.
2.
4.
2.
3.
6)
7) 4.
The legal entities referred to in point 3 of this article shall, except for the persons determined by point 3 of article 135 of this Code, with respect to objects of taxation leased or transferred for use, calculate and pay property tax at the rates established by point 1 of this article. 253
5.
Organisations operating in special economic zones shall calculate property tax taking into account the provisions established by subpoint 2) of point 3 of article 151 of this Code.
Article 399. Procedure for calculating and paying Tax 1. Taxpayers shall calculate tax themselves by applying the appropriate tax rate to the tax base. Taxpayers applying the special tax regime for legal entity manufacturers of agricultural products and rural cooperatives shall calculate tax as established by article 451 of this Code. 2. For objects of taxation under common shared ownership, the property tax for each taxpayer shall be calculated in proportion to its share in the value of the property. Payers of tax, except for individual entrepreneurs applying the patent special tax regime, should make current payments of property tax during a tax period, which are determined by applying the appropriate tax rate to the book value of objects of taxation based on accounting data at the start of the tax period. Tax shall be paid to the budget according to the location of objects of taxation. Taxpayers, except individual entrepreneurs applying the special tax regime based on a patent, shall make current payments of tax in equal amounts on or before 25 February, 25 May, 25 August and 25 November of the tax period. For the newly-established taxpayers and legal entities referred to in subpoint 3) of point 4 of article 394 of this Code, the first deadline to make current payments shall be the first regular deadline after the date the taxpayer is created (the date on which objects of taxation are leased or transferred for use). Taxpayers created after the final deadline for making current payments, and the legal entities referred to in subpoint 3) of point 4 of article 394 of this Code, when transferring objects of taxation for use or lease after the final deadline for making current payments, shall make current payments of tax due for the current tax period within the deadline stipulated by point 7 of this article. 6. If objects of taxation are received during a tax period, current payments of property tax shall be increased by the amount obtained by applying the tax rate to 1/13 of the original value of objects of taxation received, which was taken from accounting data on the receipt date, multiplied by the number of months of the current tax period, beginning from the month following the month the objects were received, until the end of the tax period. The amount by which current payments are to be increased shall be divided into equal shares for the deadlines set by point 5 of this article. In this respect, the first deadline for current payments shall be the regular deadline following the date objects of taxation are received. If objects of taxation are retired during a given tax period, current payments shall be reduced by the amount obtained from applying the tax rate against 1/13 of the book value of retired objects of taxation taken from accounting data at the start of the tax period, multiplied by the number of months of the current tax period, from the month in which the objects of taxation were retired, until the end of the tax period. The current payments to be reduced shall then be divided equally among the remaining tax payment deadlines. 7. A taxpayer shall make a final calculation and pay property tax no later than 10 calendar days after the deadline for filing a declaration for the tax period. Individual entrepreneurs applying the special tax regime based on a patent shall pay property tax within 10 calendar days of the deadline for filing a declaration for the tax period.
3.
4. 5.
8.
Article 400. Calculation and Payment of Tax in Specific Cases For objects of taxation used in business activities, individual entrepreneurs shall calculate and pay tax at the rate and in accordance with the procedure established by this chapter.
254
Article 401. Tax Period 1. The tax period for calculating and paying property tax shall be determined according to article 148 of this Code. For the legal entities referred to in subpoint 3) of point 4 of article 394 of this Code, the tax period shall be defined as being from the moment objects of taxation are leased or transferred into use, until the moment they are no longer used.
2.
Article 402. Tax Reporting 1. Taxpayers, except for individual entrepreneurs applying the patent special tax regime, should file a statement of current payments and a declaration with the tax bodies at the location of the objects of taxation. Individual entrepreneurs applying the patent special tax regime should file a declaration with the tax bodies at the location of the objects of taxation. The legal entities referred to in subpoint 3) of point 4 of article 394 of this Code shall, in respect of objects of taxation leased or transferred for use, file tax reporting in accordance with the procedure established by this article. 2. A statement of current payments of property tax shall be filed on or before 15 February of the reporting tax period. Newly created taxpayers shall file a statement of current payments on or before the 15th of the month following that in which they create a record of registration with the tax bodies. The legal entities referred to in subpoint 3) of point 4 of article 394 of this Code shall, in respect of objects of taxation leased or transferred for use, file a statement of current payments on or before the 15th of the month following that in which the objects of taxation are leased or transferred for use. 3. Following a change to property tax obligations during a tax period, a statement of current payments shall be filed on or before 15 February, 15 May, 15 August and 15 November of the current tax period for objects of taxation as at 1 February, 1 May, 1 August and 1 November accordingly. A declaration shall be filed on or before 31 March of the year following the reporting year.
4.
Chapter 58. Tax on individuals property

Article 403. Taxpayers 1. Payers of tax on individuals property shall be individuals in possession of objects of taxation in accordance with article 405 of this Code. The following shall not be payers of tax on individuals property: 1) 2) military servicemen on fixed-terms of service, for the length of their service (training); heroes of the Soviet Union, heroes of socialist labour, individuals awarded the title khalyk kaharmany, individuals awarded three classes of the Order of Glory and the otan Order, women awarded the titles Altyn alkha or Heroine Mother, and pensioners residing independently up to a maximum of 1,000 times the monthly calculation index set by the law on the state budget for the relevant financial year, from the total value of all objects of taxation held under ownership rights; veterans of the Great Patriotic War and individuals of equivalent status, handicapped individuals registered under Groups I and II up to a limit of 1,500 times the monthly calculation index set
2.
3)
255
by the law on the state budget for the relevant financial year, from the total value of all objects of taxation held under ownership rights; 4) individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War up to a limit of 1,500 times the monthly calculation index set by the law on the state budget for the relevant financial year, from the total value of all objects of taxation held under ownership rights. The individuals referred to in subpoints 1)-4) of this point shall calculate and pay tax on the objects of taxation leased or transferred for use in accordance with the procedure established by this chapter; 5) individual entrepreneurs with respect to objects of taxation used in business activities.
Article 404. Definition of a Taxpayer in Specific Cases 1. Where an owner transfers its objects of taxation to trust management, the taxpayer shall be determined in accordance with articles 35 and 36 of this Code. If an object of taxation is owned by several persons, each of those persons shall be the taxpayer. If objects of taxation are under common shared ownership, any one of the owners of the given objects of taxation may be the payer of tax by arrangement between them.
2. 3.
Article 405. Object of Taxation The object of property tax for individuals shall be residential premises, dacha buildings, garages and other buildings, structures and premises in the Republic of Kazakhstan that belong to them under ownership rights, as well as construction in progress from the date of occupation (commission date). Article 406. Tax Base 1. The tax base for residential premises, dacha buildings or construction in progress for individuals shall be the value of objects of taxation set as at 1 January of each year by the authorised state body for the registration of rights to immovable property and transactions with it, as follows: V = V b x S x C phys x C func x C zone x C change mci, where: V is the value of property for taxation purposes; V b is the base value of one square metre of residential premises, dacha building or construction in progress; S is the living space in residential premises, a dacha building or construction in progress in square metres; C phys is a physical depreciation coefficient; C func is a functional depreciation coefficient; C zone is a zoning coefficient; C change mci is a coefficient for changes in the monthly calculation index. 2. The base value of one square metre of residential premises, a dacha building or construction in progress in the national country (V b) shall be determined depending on the populated area as follows: 256
No. 1
Populated area 2 Cities:
Base value in tenge 3
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 3.
Almaty Astana Aktau Aktobe Atyrau Karaganda Kyzylorda Kokshetau Kostanai Pavlodar Petropavlovsk Taldykorgan Taraz Uralsk Ust-Kamenogorsk Shymkent Towns of oblast status Towns of regional status Settlements Villages (auls)
30,000 30,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 18,000 12,000 6,000 4,200 2,700
The tax base for unheated building extensions, outbuildings, ground floors, and basements in residential premises; and garages shall be the value of the object in question calculated as at 1 January of each year by the authorised state body for the registration of rights to immovable property and transactions with it, according to the following formula: V = V b x S x C phys x C change mci x C zone, where: V is the value of property for taxation purposes; V b is the base value of one square metre calculated as a percentage of the base value established by point 2 of this article: for unheated building extensions, outbuildings, ground floors and basements in residential premises 25%;
257
for garages 15%; S is the total area of unheated building extensions, outbuildings, ground floors, basements and garages in squares metres; C phys is a physical depreciation coefficient determined in accordance with the procedure established by point 4 of this article; C change mci is a coefficient for changes in the monthly calculation index determined in accordance with the procedure established by point 7 of this article; C zone is a zoning coefficient determined in accordance with the procedure established by point 6 of this article. 4. The coefficient for the physical depreciation of residential premises, a dacha building or construction in progress shall be determined taking into consideration depreciation rates and effective age, using the following formula: C phys = 1 D phys, where: D phys is the physical depreciation of residential premises, a dacha building or construction in progress. Physical depreciation shall be determined according to the following formula: D phys = (T base T commission) x D norm/100, where: T base is the year for which tax is accrued; T commission is the year an object of taxation is commissioned; D norm is the rate of depreciation. The following depreciation rates shall be applied depending on the characteristics of a particular building when calculating physical depreciation: No. Solidity group 2 1 Building characteristics Depreciation rate, % 4 0.7 Period of use 5 143
1 1
3 Stone buildings, brick walls more than 2.5 bricks thick or brick walls with reinforced concrete or metal frames, reinforced concrete and concrete coverings; buildings with large panelled walls, reinforced concrete coverings Buildings with brick walls between 1.5-2.5 bricks thick, reinforced concrete, concrete or wooden coverings; buildings with large block walls, reinforced concrete coverings Buildings with light brick walls, monolithic slagconcrete, light slag-blocks, coquina, reinforced concrete or concrete coverings; buildings with large block or light brick, monolithic slag-concrete and light slag-block walls Buildings with mixed timber or stacked wooden walls
0.8
125
1.0
100
2.0
50
258
Adobe, factory built plate, frame, wattle and daub, sun-dried buildings Cane fibre frame houses
3.3
30
6.6
15
If the physical depreciation of stone or panel built residential premises, dacha building or construction in progress exceeds 70%, of 65% for residential premises build from other materials, then the physical depreciation coefficient shall be 0.2. 5. The functional depreciation coefficient (C phys), which shows a change in quality requirements for residential premises, a dacha building or construction in constructions, shall be calculated using the following formula: C func = C floor x C corner x C wall material x C development x C heating, where: C floor is a coefficient recording changes in base value depending on the floor of a particular premises or construction in progress; C corner is a coefficient that records the location of a residential premises or construction in progress in corner parts of a building; C wall material is a coefficient that records wall material; C development is a coefficient that records the level of development of a residential premises, dacha building or construction in progress and its level of engineering and technical services; C heating is a coefficient that records the type of heating. The following coefficients shall be applied with respect to floor number (C floor): No. 1 1 2 3 Floor 2 First floor Interim floors or detached residential house Top floor 3 0.95 1.00 0.9
For tenement residential blocks up to three floors high, the floor coefficient for any building shall equal 1. The following coefficient (C corner) shall be applied depending on the location of a residential premises or construction in progress in corners of buildings: No. Location of a residential premises or construction in progress in the corner of a building 2 Corner residential premises or construction in progress Non-corner residential premises or construction in progress or detached house C corner
1 1 2
3 0.95 1.0
The following coefficients (C wall material) shall be applied depending on wall material:
259
No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Wall material 2 Brick Expanded clay blocks Expanded clay blocks with brick veneer Reinforced concrete panels Reinforced concrete panels with brick veneer Adobe Adobe with a 0.5 brick finish Monolithic slag-blocks Reinforced concrete blocks Pre-fabricated wood frame houses Pre-fabricated wood frame houses with a 0.5 brick finish Timber Sleeper wood Sleeper wood with a brick finish Cane fibre frame
Coefficient 3 1.1 1.0 1.05 1.0 1.05 0.5 0.6 0.7 1.0 0.6 0.75 0.85 0.75 0.95 0.6
When a residential premises, dacha building or construction in progress have been equipped with the relevant engineering systems and technical devices a development coefficient (C development) of 1 shall apply. In the absence of engineering systems and technical devices that create standard or comfortable living (domestic) conditions (a water supply, drainage, other types of development), the C development coefficient shall equal 0.8. The following heating coefficient (C heating) shall apply depending on the type of heating: No. 1 1 2 3 4 6. Type of heating 2 Central heating Domestic gas or fuel oil heating Domestic solid fuel heating Stove heating C heating 3 1.0 0.98 0.95 0.9
A zoning coefficient (C zone), which records the location of an object of taxation in a populated area, shall be established by the authorised state body for the registration of rights to immovable property and transactions with it, with the agreement of the local executive body. 260
7.
The coefficient for changes in the monthly calculation index (C change mci) shall be determined using the following formula: C change mci = mci current yr / mci previous yr, where: mci current yr is the monthly calculation index set by the law on the state budget for the relevant financial year; mci previous yr is the monthly calculation index by the law on the state budget for the previous financial year.
8.
When an unheated building extension, outbuildings, ground floor or basement in a residential premises, or garage are a part of a residential premises or construction in progress, the tax base shall be determined as the total value of these objects of taxation as determined by the authorised state body for the registration of rights to immovable property and transactions with it in accordance with this article. When one individual is a payer for several objects of taxation the tax base shall be calculated by the authorised state body for the registration of rights to immovable property and transactions with it separately for each object.
9.
Article 407. Calculation and Payment of Tax in Specific Cases For non-residential premises held under ownership rights by an individual not performing business activities, except for non-residential premises whose tax base is determined in accordance with article 406 of this Code, the individual shall calculate and pay property tax and file tax reporting in accordance with the procedure established by chapter 57 of this Code for individual entrepreneurs applying the patent special tax regime, using the rate established by point 2 of article 398 of this Code. The tax base for these premises shall be determined in accordance with point 4 of article 397 of this Code. Article 408. Tax Rates The property of individuals for whom the tax rate is calculated in accordance with article 406 of this Code shall be taxed at the following rates, depending on the value of the objects of taxation: up to 1,000,000 tenge inclusive above 1,000,000 tenge until 2,000,000 tenge inclusive above 2,000,000 tenge until 3,000,000 tenge inclusive above 3,000,000 tenge until 4,000,000 tenge inclusive above 4,000,000 tenge until 5,000,000 tenge inclusive above 5,000,000 tenge until 6,000,000 tenge inclusive above 6,000,000 tenge until 7,000,000 tenge inclusive above 7,000,000 tenge until 8,000,000 tenge inclusive 0.05% of the value of the object of taxation; 500 tenge + 0.08% from the amount exceeding 1,000,000 tenge; 1,300 tenge + 0.1% from the amount exceeding 2,000,000 tenge 2,300 tenge + 0.15% from the amount exceeding 3,000,000 tenge 3,800 tenge + 0.2% from the amount exceeding 4,000,000 tenge 5,800 tenge + 0.25% from the amount exceeding 5,000,000 tenge 8,300 tenge + 0.3% from the amount exceeding 6,000,000 tenge. 11,300 tenge + 0.35% from the amount exceeding 7,000,000 tenge.
261
above 8,000,000 tenge until 9,000,000 tenge inclusive above 9,000,000 tenge until 10,000,000 tenge inclusive above 10,000,000 tenge until 50,000,000 tenge inclusive above 50,000,000 tenge until 120,000,000 tenge inclusive above 120,000,000 tenge
14,800 tenge + 0.4% from the amount exceeding 8,000,000 tenge. 18,800 tenge + 0.45% from the amount exceeding 9,000,000 tenge. 23,300 tenge + 0.5% from the amount exceeding 10,000,000 tenge. 223,300 tenge + 0.75% from the amount exceeding 50,000,000 tenge 758,300 tenge + 1% from the amount exceeding 120,000,000 tenge
Article 409. Procedure for calculating and paying Tax 1. The tax bodies shall calculate tax payable on individuals objects of taxation on or before 1 August of the tax period according to the location of the objects of taxation, irrespective of the taxpayers place of residence, by applying the appropriate tax rate to the tax base. If an object of taxation is held under ownership rights for less than 12 months during a particular tax period, property tax payable shall be calculated by dividing the tax determined in accordance with point 1 of this article by 12 and multiplying it by the number of months property is held under ownership rights. Where objects of taxation are under the common shared ownership of several individuals, tax shall be calculated in proportion to the given share in the property. Where one individual is a payer of tax in relation to several objects of taxation, tax shall be calculated separately for each object of taxation. Where an object of taxation is ruined, destroyed or demolished, tax shall be recalculated subject to the provision of documents issued by an authorised body confirming the ruin, destruction or demolition. Where a taxpayer acquires a right to a tax exemption during a tax period, tax shall be adjusted from the first month in which that right arose. Tax shall be paid to the budget according to the location of the objects of taxation on or before 1 October of the reporting tax period. Where ownership rights to objects of taxation are transferred during a tax period, tax shall be calculated for the actual period during which ownership rights to property were held. Tax payable for an actual period an object of taxation is held by a person transferring ownership rights should be paid to the budget on or before the date of the state registration of the given ownership rights. In this respect, the original taxpayer shall be responsible for tax calculated from 1 January of the current year up to the start of the month in which it transfers ownership rights. The tax bodies shall notify the subsequent taxpayer of the amount of property tax payable calculated for the period beginning on the 1st of the month in which the given ownership rights were acquired. An annual amount of tax may be paid to the budget by any one of the given parties (by agreement) following the state registration of ownership rights to an object of taxation. There shall be no second payment of the given taxes. 9. When, at the moment of the state registration (except for initial registration) of rights to immovable property and transactions with it, the value of objects of taxation has not been determined by the body authorised by the Government of the Republic of Kazakhstan, tax shall be paid on the basis of tax accrued in the preceding tax period.
2.
3.
4.
5.
6.
7.
8.
262
Article 410. Tax Period 1. The tax period for calculating and paying tax on individuals property shall be defined according to article 148 of this Code. In the event of the ruin, destruction or demolition of individuals objects of taxation, the month in which the objects of taxation were ruined, destroyed or demolished shall be included in a statement for the tax period.
2.
Section 16. Tax on the gaming business Chapter 59. Tax on the gaming business
Article 411. Payers Payers of tax on the gaming business shall be individual entrepreneurs and legal entities operating: 1) 2) 3) 4) casinos; gaming machine halls; totalisers; bookmakers.
Article 412. Objects of Taxation The objects of taxation for tax on the gaming business from operating in the gaming business shall be: 1) 2) 3) 4) 5) 6) gaming tables; gaming machines; totaliser cash desks; electronic totaliser cash desks; bookmaker cash desks; electronic bookmaker cash desks.
Article 413. Tax Rates The rate of tax on the gaming business for each unit of an object of taxation shall be for: 1) gaming tables 830 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month; gaming machines 30 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month; totaliser cash desks 125 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month; electronic totaliser cash desks 125 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month;
2)
3)
4)
263
5)
bookmaker cash desks 75 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month; electronic bookmaker cash desks 75 times the monthly calculation index set by the law on the state budget for the relevant financial year, per month.
6)
Article 414. Tax Period The tax period for tax on the gaming business shall be the calendar quarter. Article 415. Procedure for calculating and Deadline for paying Tax 1. Tax on the gaming business shall be calculated by applying the relevant tax rate to each object of taxation as determined in article 412 of this Code, unless otherwise established by point 2 of this article. When objects of taxation are commissioned before the 15th of the month, tax on the gaming business shall be calculated at the established rate. If they are commissioned after the 15th of the month tax shall be of the established rate. When objects of taxation are retired on or before the 15th of the month, tax on the gaming business shall be calculated as of the established rate; and if they are retired after the 15th of the month tax shall be paid according to the established rate. 3. Tax on the gaming business shall be payable to the budget at the place of registration of the objects of taxation on or before the 25th of the second month following the reporting tax period.
2.
Article 416. Additional Payment of Payers of Tax on the Gaming Business 1. An additional payment shall be calculated if income generated from activities in the gaming business exceeds the maximum amount of income established by point 2 of this article. The maximum amount of income for the tax period for payers of tax on the gaming business shall be: 1) from casino activities 135,000 times the monthly calculation index set by the law on the state budget for the relevant financial year; from gaming machines 25,000 times the monthly calculation index set by the law on the state budget for the relevant financial year; from totaliser activities 2,500 times the monthly calculation index set by the law on the state budget for the relevant financial year; from bookmaker activities 2,000 times the monthly calculation index set by the law on the state budget for the relevant financial year.
2.
2)
3)
4)
Article 417. Procedure for calculating and making Additional Payments 1. An additional payment shall be calculated by applying the rate established by point 1 of article 147 of this Code to any amount exceeding maximum income, and payable on or before the 25th of the second month following the reporting tax period. When payers of tax on the gaming business engage in several types of activities in the gaming business, an additional payment shall be calculated separately for each type of activity in the gaming business. When other types of business activities not referred to in article 411 of this Code and that are not related to the gaming business are performed, payers of tax on the gaming business should keep
2.
3.
264
separate accounting for the income and expenses on these activities and make budget settlements in accordance with the standard procedure. Article 418. Tax Declaration Filing Deadline A declaration of tax on the gaming business shall be filed on or before the 15th of the second month following the reporting quarter according to the location of the objects of taxation.
Section 17. Fixed tax Chapter 60. Fixed tax

Article 419. Main Terms used in this Chapter The terms used in this chapter shall have the following meanings: 1) billiard table a special table with pockets (openings in the cushions) and without them that is used to play billiards; bowling lane a special lane to be used to play bowling (skittles); gaming machine without prize a specially equipped (mechanical, electronic, electric and other type of technical equipment) used to hold games; cart a small racing vehicle without a carriage body, differential and spring wheel suspension, with a twin-stroke engine up to 250 cm3 and a maximum speed of 150 kmh.
2) 3)
4)
Article 420. Payers Payers of fixed tax shall be individual entrepreneurs and legal entities providing services using: 1) 2) 3) 4) 5) gaming machines without a prize; personal computers used to hold games; bowling alleys (skittles); carting; billiard tables (billiards);
Article 421. Object of Taxation for Fixed Tax The object of taxation for fixed tax shall be: 1) 2) 3) 4) 5) 6) a gaming machine without a prize that is to be used by one player; a gaming machine without a prize that is to be used by more than one player; a personal computer used to hold a game; a bowling alley; carts; billiard tables.
265
Article 422. Rates of Fixed Tax 1. No. The minimum and maximum base rates of fixed tax per unit of taxation per month shall be: Name of object of taxation Minimum base rates of fixed tax (in multiples of the monthly calculation index) 3 1 Maximum base rates (in multiples of the monthly calculation index) 4 12
1 1
2 Gaming machine without a prize that is to be used by one player Gaming machine without a prize that is to be used by more than one player Personal computer used to hold a game Bowling alley Cart Billiard table
18
3 4 5 6 2.
1 5 2 3
4 83 12 25
Local executive bodies shall set common rate of fixed tax for all taxpayers operating in a single administrative and regional unit within the framework of approved base rates.
Article 423. Tax Period The tax period for fixed tax shall be the calendar quarter. Article 424. Procedure for calculating and Deadline for paying Fixed Tax 1. Fixed tax shall be calculated by applying the appropriate tax rate to each object of taxation as determined by article 421 of this Code, unless otherwise established by point 2 of this article. When objects of taxation are commissioned before the 15th of the month, fixed tax shall be calculated at the established rate. If they are commissioned after the 15th of the month tax shall be of the established rate. When objects of taxation are retired on or before the 15th of the month, fixed tax shall be calculated for half a month; and if they are retired after the 15th of the month tax shall be paid according to the established rate. 3. Fixed tax shall be payable to the budget at the place of registration of the objects of taxation on or before the 25th of the second month following the reporting tax period. When other types of business activities not referred to in article 420 of this Code are performed, payers of fixed tax should keep separate accounting for the income and expenses on these activities and make budget settlements in accordance with the standard procedure.
2.
4.
Article 425. Tax Declaration Filing Deadline A declaration of fixed tax shall be filed on or before the 15th of the second month following the reporting quarter with the tax body at the location of the objects of taxation.
266
Section 18. Special Tax Regime

Article 426. Types of Special Tax Regimes 1. Special tax regimes shall be divided into the following types: 1) the special tax regime for small businesses, which include: the patent special tax regime; the simplified declaration special tax regime; 2) 3) the special tax regime for farms or farm holdings; the special tax regime for legal entity manufacturers of agricultural products and rural consumer cooperatives. Taxpayers shall be entitled to choose the standard procedure or a special tax regime in those cases and in accordance with the procedure established by this section. For the purposes of this section the term standard procedure shall mean the procedure used to calculate and pay taxes and make other obligatory payments to the budget; file tax reporting on them as established by the special part of this Code, except for the procedure established by this section. 2. A patent shall be a document confirming a budget settlement with respect to individual income tax, except for individual income tax withheld at the source of payment, and social tax. The form of a patent shall be established by the authorised body. If a patent is lost, a duplicate shall be issued according to a taxpayers application. Patents issued (duplicates) shall be registered by the tax bodies in patent registration (issue) logs. The form of the registration logs and procedure for completing them shall be established by the authorised body. 6. For the purpose of the taxation of persons applying special tax regimes, a taxpayers separate structural subdivision shall be recognised as any territorially separate division that has been equipped with permanent work places, and that fulfils a part of the taxpayers functions. A work place shall be considered as fixed if it has been created for a period of more than one month.
3. 4. 5.
Chapter 61. Special tax regime for small businesses

1. General Provisions Article 427. General Provisions 1. For the purposes of this Code, small businesses shall be recognised as individual entrepreneurs and legal entities that meet the criteria established by articles 428, 429 and 433 of this Code. The special tax regime shall establish a simplified procedure for small businesses for calculating and paying social tax, corporate or individual income tax, except for taxes withheld at the source of payment. The taxes and other obligatory payments to the budget not mentioned in this point shall be calculated and paid, with tax reporting filed in accordance with the standard procedure. The object of taxation for taxpayers applying the special tax regimes based on a patent or simplified tax regime shall be income for the tax period, consisting of all types of income received (receivable) in and outside of the Republic of Kazakhstan. 267
2.
3.
Income shall include the income referred to in subpoints 1), 3)-9), 11)-24) of point 1 of article 85 of this Code, as determined in accordance with this Code. Corporate or individual income tax shall be calculated and paid, while tax reporting filed on the income referred to in subpoints 2) and 10) of point 1 of article 85, subpoints 1) and 4) of article 177 of this Code in accordance with the standard procedure. Article 428. Conditions for applying a Special Tax Regime 1. Small businesses shall be entitled to choose only one of the procedures listed below for calculating and paying taxes, and also for filing tax reporting: 1) 2) 3) 2. the standard procedure; the patent special tax regime; the simplified declaration special tax regime.
After transferring to the standard procedure, a subsequent transfer to a special tax regime shall only be possible once the standard procedure has been applied for two calendar years. A special tax regime may not be applied by: 1) 2) 3) 4) 5) legal entities with branches or representative offices; branches and representative offices of legal entities; taxpayers with structural subdivisions and (or) objects of taxation in various populated areas; legal entities in which the participation interest of other legal entities amounts to more than 25%; legal entities whose founder is also the founder of a different legal entity applying a special tax regime.
3.
The provisions of subpoint 3) of this point shall not extend to taxpayers whose activities are leasing property. 4. A special tax regime shall not extend to the following types of activities: 1) 2) 3) 4) 5) the manufacture of excisable products; advisory, financial and accounting services; the realisation of oil products; the collection and receipt of glassware; subsoil use.
2. Patent Special Tax Regime Article 429. General Provisions Individual entrepreneurs meeting the following conditions shall apply the patent special tax regime: 1) 2) those not hiring employees; those operating in the form of individual entrepreneurship;
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3)
those whose income for the tax period does not exceed 200 times the minimum salary set by the law on the state budget for the relevant financial year.
Article 430. Tax Period The tax period shall be the calendar year. Article 431. Conditions of Use 1. An individual entrepreneur should file an application to apply the patent special tax regime with the tax body at its location before it begins applying the special tax regime. Newly created individual entrepreneurs shall file the above application within 10 calendar days of state registration as an individual entrepreneur. The date individual entrepreneurs begin applying the special tax regime will be the date of state registration as an individual entrepreneur. An individual entrepreneurs failure to file a tax application within the deadline referred to in this point shall be considered its consent to make budget settlements in accordance with the standard procedure. A taxpayer shall file a patent statement (hereafter for the purposes of this chapter statement) at the same time as a tax application to apply the patent special tax regime, in the format established by the authorised body. Documents shall be attached to a statement confirming that the patent value, social contributions and obligatory pension contributions have been paid to the budget. Taxpayers filing an electronic statement shall not file the above documents. A statement to receive a subsequent patent shall be filed before the previous patent expires, without having to file an application to apply the patent special tax regime. 2. The tax bodies shall issue a patent or issue a decision to refuse to issue a patent in the format established by the authorised body within one working day after a statement and attached documents are filed. A decision shall be issued in duplicate, one of which shall be served to the taxpayer in return for a signature. The grounds for refusing to issue a patent shall be a taxpayers failure to meet the conditions referred to in articles 428 and 429 of this Code. A patent shall be issued for no less than one month or no more than 12 months. A patent shall be invalid if a certificate on the state registration of an individual entrepreneur has not been presented. 3. If an individual entrepreneur temporarily suspends business activities when applying the patent special tax regime, the individual entrepreneur shall file a tax application with the tax body at its place of residence in accordance with the procedure established by article 74 of this Code. The application of the patent special tax regime shall cease on the basis of a tax application or following a decision of the tax body in those cases stipulated by point 7 of this article. A tax application shall be filed before a patent expires if a taxpayer decides to stop applying the patent special tax regime voluntarily. Where conditions are such that the patent special tax regime cannot be applied, an individual entrepreneur should: 1) file the following within five working days from the moment conditions are no longer met: a tax application to end the application of a special tax regime;
4.
5.
6.
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an additional statement on any excess if actual income exceed the income amount established by subpoint 3) of article 429 of this Code; 2) transfer to the standard procedure or other special tax regime in accordance with the procedure established by this Code, from the month following the month in which the conditions in question arose.
7.
After discovering a taxpayers failure to meet the conditions for applying a special regime, a tax body shall notify the taxpayer of its decision to transfer it to the standard procedure from the month following the month in which the failure to comply arose.
Article 432. Calculation of the Value of a Patent 1. The value of a patent shall be calculated by applying the rate of 2% to an object of taxation. The value of a patent shall be payable to the budget in the form of: 1) 2) individual income tax of of the value of the patent; social tax of of the value of the patent less social contributions calculated in accordance with the Law of the Republic of Kazakhstan On Obligatory Social Insurance. If social contributions exceed social tax, then social tax shall equal zero. 2. If actual income while a patent is valid exceeds income stated in a statement, an individual entrepreneur should, within five working days, file an additional statement for the excess amount and pay tax from this amount. A new patent shall be issued in exchange for the previous patent based on the above statement. 3. If actual income while a patent is valid is less than the income in a statement, an individual entrepreneur shall be entitled to file an additional statement for the reduced amount. In this case, the refund of excess tax paid shall be refunded in accordance with the procedure established by article 602 of this Code following a chronometric inspection carried out by the tax bodies. 4. If actual income generated exceeds the maximum established by article 429 of this Code before the patent expires, the value of the patent shall be calculated at the rate established by point 1 of this article before transferring to a different taxation regime in those cases established by points 6 and 7 of article 431 of this Code. If business activities are ceased before a patent expires taxes paid shall not be refunded nor recalculated, except for when an individual entrepreneur is recognised as legally incapable.
5.
3. Simplified Declaration Special Tax Regime Article 433. General Provisions 1. The simplified declaration special tax regime shall be used by small businesses that meet the following conditions: 1) for individual entrepreneurs: the maximum number of payrolled employees for a tax period is 25, including the individual entrepreneur; maximum income for a tax period is 10,000,000 tenge; 2) for legal entities:
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the maximum number of payrolled employees for a tax period is 50; the maximum income for a tax period is 25,000,000 tenge. Article 434. Tax Period The tax period shall be the calendar quarter. Article 435. Conditions of Use 1. Unless otherwise established by this point, to apply the simplified declaration special tax regime, a taxpayer shall file an application to the tax bodies according to its location before the tax period begins. Newly created legal entities shall file a tax application to apply the simplified declaration special tax regime with a tax body no later than 20 working days after the state registration of a legal entity with the justice authorities. Newly created individual entrepreneurs shall file a tax application to apply the simplified declaration special tax regime no later than 10 working days from the day of state registration as an individual entrepreneur. The date from which the above taxpayers begin applying the special tax regime will be the date the legal entity or individual entrepreneur undergoes state registration. A taxpayers failure to file a tax application within the deadline referred to in this point shall be considered its consent to make budget settlements in accordance with the standard procedure. 2. Within three working days from when a taxpayer files a tax application a tax body shall issue a decision on the application of the special tax regime or a refusal to allow the application of the special tax regime, in the format established by the authorised body. Decisions shall be drawn up in duplicate. One copy shall be served to the taxpayer in return for a signature or sent by registered mail if a taxpayer fails to appear at a tax body to receive a decision within 10 calendar days from the day the tax body takes the relevant decision. A decision sent by registered mail shall be considered as served to a taxpayer from the date the taxpayer in question signs for the correspondence with the postal or other communications organisation. Grounds for refusing to allow a taxpayer to apply the special tax regime shall be the taxpayers failure to meet the conditions referred to in articles 428 and 433 of this Code. 3. The application of the simplified declaration special tax regime shall cease on the basis of a tax application or following a decision of a tax body in those cases stipulated by point 6 of this article. If a taxpayer has decided to voluntarily stop applying the simplified declaration special tax regime, a tax body shall cease application of the regime from the month following the month in which a tax application was filed. A taxpayer shall file a tax application within 10 calendar days from the moment it fails to meet the conditions established by articles 428 and 433 of this Code. Termination of the special tax regime in this case shall arise from the month following the month in which the taxpayer no longer meets the above conditions. After discovering a taxpayers failure to meet the conditions for applying the special regime, a tax body shall notify the taxpayer of its decision to transfer it to the standard procedure from the month following the month in which it no longer complied with the above conditions.
4.
5.
6.
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Article 436. Calculation of Taxes according to a Simplified Declaration 1. A taxpayer shall calculate taxes on the basis of a simplified declaration itself by applying a rate of 3% to the object of taxation for the tax period. The amount of tax calculated for the tax period according to point 1 of this article shall be reduced by 1.5% of the tax amount for each employee if employees average monthly salaries at the end of a reporting period amounted, for individual entrepreneurs, to no less than twice, and for legal entities no less than 2.5 times the minimum monthly salary set by the law on the state budget for the relevant financial year. If actual income received during the tax period exceeds income established by article 433 of this Code, taxes shall be calculated before transferring to the generally accepted taxation procedure or a different special tax regime at the rate established by point 1 of this article. For the case referred to in point 3 of this article only the amount of tax calculated from income established by article 433 of this Code shall be adjusted as stipulated by point 2 of this article. If the maximum number of employees for the tax period, as established by article 433 of this Code, has been exceeded, the adjustment stipulated by point 2 of this article shall be made solely up to the maximum number of employees.
2.
3.
4.
5.
Article 437. Deadline for filing a Simplified Declaration and paying Taxes 1. A simplified declaration shall be filed with a tax body at the taxpayers location on or before the 15th of the second month following the reporting tax period. Payment to the budget of taxes calculated according to a simplified declaration shall be made on or before the 25th of the second month following the reporting tax period in the form of individual (corporate) income tax and social tax. In this respect, individual (corporate) income tax due shall equal of the amount calculated according to a simplified declaration, while social tax due shall equal of the amount according to a simplified declaration, less social contributions to the State Social Insurance Fund calculated in accordance with a legislative act of the Republic of Kazakhstan on obligatory social insurance. If social contributions to the State Social Insurance Fund exceed social tax, social tax shall equal zero. 3. A simplified declaration shall record individual income tax withheld at the source of payment, obligatory pension contributions and social contributions.
2.
Article 438. Special Considerations for the Payment of Specific Taxes, Obligatory Pension Contributions and Social Contributions Individual income tax withheld at the source of payment, social contributions shall be paid, while obligatory pension contributions shall be transferred on or before the 25th of the second month following the reporting tax period.
Chapter 62. Special tax regime for farms and farm holdings
Article 439. General Provisions 1. Farms or farm holdings shall be entitled to choose the special tax regime established by this chapter or the standard procedure themselves. The special tax regime for farms and farm holdings shall envisage a special procedure for making budget settlements based on the payment of unified land tax and shall apply to the activities of
2.
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farms and farm holdings to grow agricultural produce, process own agricultural produce and realise it, except for activities involving the production, processing and realisation of excisable products. 3. The right to apply the special tax regime shall be granted to farms and farm holdings provided land plots are held under the right to private ownership and (or) on the basis of a right to use land (including a right to the secondary use of land).
Article 440. Tax Period The tax period for unified land tax shall be the calendar year. Article 441. Conditions of Use 1. To apply the special tax regime farms or farm holdings should filed a tax application with the tax body at the location of a land plot on or before 20 February of the first year in which the regime in question is applied. A failure to file a tax application within the established deadline shall be considered as the taxpayers agreement to make budget settlements in accordance with the standard procedure. The tax regime chosen may not be changed during the tax period. Copies of the following documents shall be filed together with a tax application: 1) identification documentation for land plots certified by a notary or rural (village) executive bodies; valuation acts for land plots issued by the authorised state body responsible for the management of land resources, which should be certified by a notary or rural (village) executive bodies. In the absence of a valuation act the value of land plots shall be determined based on the estimated average value per hectare of land for the region according to data provided by the authorised state body for the management of land resources. Farms or farm holdings created after 20 February shall file a tax application for the right to apply the special tax regime with a tax body within 30 working days from receiving a certificate on the state registration of an individual entrepreneur. When the right to a land plot arises in a different administrative and regional unit after 20 February, the farm or farm holding shall file a tax application with a tax body for the right to apply the special tax regime within 30 calendar days from the moment it is registered at the location of the land plot in question. If a taxpayer carrying out the activities not covered by this special tax regime acquires the right to a land plot after 20 February, it shall file an application with a tax body for the right to apply the special tax regime within 30 calendar days from the moment of registration at the location of the land plot in question. Farms or farm holdings applying the special tax regime shall re-file the documents referred to in subpoints 1) and 2) of this point if data in them changes or if they acquire rights to other land plots. 2. Within three working days from the day a taxpayer files a tax application a tax body shall issue a decision on the application of the special tax regime or a refusal to allow the application of the special tax regime, in the format established by the authorised body. Decisions shall be drawn up in duplicate. One copy shall be served to the taxpayer in return for a signature or sent by registered mail if a taxpayer fails to appear at a tax body to receive a decision within 10 calendar days from the day a tax body takes the relevant decision.
2)
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A decision sent by registered mail shall be considered as served to a taxpayer from the date the taxpayer in question signs for the correspondence with the postal or other communications organisation. Grounds for refusing to allow a taxpayer to apply the special tax regime shall be the taxpayers failure to meet the conditions referred to in article 439 of this Code, and the taxpayers failure to file the documents referred to in point 1 of this article. 3. Application of the special tax regime shall cease on the basis of a tax application in accordance with the procedure stipulated by this point. Where conditions arise that do not allow a taxpayer to apply the special tax regime, the taxpayer shall file a tax application with a tax body within five working days from the moment it no longer meets the relevant conditions and transfer to the standard procedure from the month following the month in which conditions are no longer met. If a taxpayer decides voluntarily to stop applying the special tax regime, it shall be transferred to the standard procedure from the month following the reporting period on the basis of a tax application that should be filed on or before 31 December of the tax period preceding the year application of the tax regime was stopped. After discovering a taxpayers failure to meet the conditions for applying the special regime, a tax body shall notify the taxpayer of its decision to transfer it to the standard procedure from the month following the month in which it no longer complied with the above conditions. Article 442. Special Considerations of the Application of the Special Tax Regime
1.
Payers of unified land tax shall not be payers of the following taxes and other obligatory payments to the budget: 1) individual income tax on income from the activities of farms or farm holdings covered by this special tax regime; value added tax on turnover from activities covered by this special tax regime; land tax and (or) charges for the use of land plots for land plots used in activities covered by this special tax regime; tax on means of transport with respect to the objects of taxation referred to in subpoints 1) and 2) of point 3 of article 365 of this Code; property tax with respect to the objects of taxation referred to in subpoint 1) of point 4 of article 394 of this Code.
2) 3)
4)
5)
2.
The taxes and other obligatory payments to the budget not referred to in point 1 of this article shall be calculated and paid, while related tax reporting shall be filed in accordance with the standard procedure. Payers of unified land tax shall be entitled to file a voluntary tax application to the tax bodies to register as a payer of value added tax.
3.
If taxpayer perform activities not covered by the special tax regime for farms and farm holdings, payers of unified land tax should maintain separate records of income, expenses and property; calculate and pay the relevant taxes and make other obligatory payments to the budget for the activities in question in accordance with the standard procedure.
Article 443. Object of Taxation The object of taxation for unified land tax shall be the appraisal value of a land plot.
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Article 444. Procedure for calculating Unified Land Tax 1. Unified land tax for arable fields shall be calculated by applying the following rates which are based on the total area of land plots to the total appraisal value of the land plots: Area of land plots (hectares) 2 up to 500 between 501 and 1,000 inclusive Tax rate 3 0.1% 0.1% of the appraisal value from 500 hectares + 0.2% of the appraisal value from area exceeding 500 hectares 0.2% of the appraisal value from 1,000 hectares + 0.3% of the appraisal value from area exceeding 1,000 hectares 0.3% of the appraisal value from 1,500 hectares + 0.4% of the appraisal value from area exceeding 1,500 hectares 0.4% of the appraisal value from 3,000 hectares + 0.5% of the appraisal value from area exceeding 3,000 hectares
No. 1 1 2
between 1,001 and 1,500 inclusive
between 1,501 and 3,000 inclusive
over 3,000
Unified land tax shall be calculated for pasture land, natural hat fields and other land plots used in activities covered by the special tax regime by applying the 0.1% rate to the total appraisal value of the land plots. 2. Farms or farm holdings shall calculate and unified land tax for the actual period a land plot is held under the right to use land. The appraisal value of a land plot for an actual period of use shall be determined by dividing the appraisal value of the land plot by 12 and multiplying it by the number of months of the actual period of use of the land plot. Where a farm or farm holding leases a land plot to another farm or farm holding, both parties shall calculate unified land tax for the actual period of use of the land plot. The period of a lessees actual use shall be determined as beginning from the month in which the land plot was leased. Article 445. Special Considerations of the Calculation of Social Tax Payers of unified land tax shall calculate social tax every month at the rate of 20% of the monthly calculation index set by the law on the state budget for the relevant financial year for each employee, and also for the head and adult members of the farm or farm holding. The obligation of the adult members of a farm or farm holding to calculate and pay social tax shall arise from the start of the calendar year following the year they reach adulthood. Social tax calculated shall be reduced by social contributions calculated in accordance with the Law of the Republic of Kazakhstan On Obligatory Social Insurance. When social contributions exceed social tax, social tax shall equal zero.
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Article 446. Deadline for the Payment of Certain Taxes and Other Obligatory Payments to the Budget, Social Contributions and the Transfer of Obligatory Pension Contributions 1. Unified land tax, social tax, individual income tax withheld at the source of payment, the charge for the use of surface water resources, the charge for environmental emissions and social contributions shall be paid, while obligatory pension contributions shall be transferred in accordance with the following procedure: 1) amounts calculated for the period from 1 January to 1 October of the tax period - on or before 10 November of the current tax period; amounts calculated for the period from 1 October to 31 December of the tax period - on or before 10 April of the tax period following the reporting tax period.
2)
2.
Social tax and individual income tax withheld at the source of payment shall be paid according to the location of land plots.
Article 447. Deadline for filing Tax Reporting for Specific Taxes and Other Obligatory Payments to the Budget, Social Contributions and Other Obligatory Pension Contributions A declaration for payers of unified land tax shall record assessed unified land tax, social tax, individual income tax withheld at the source of payment, charges for the use of surface water resources and for environmental emissions, obligatory pension contributions and social contributions. A declaration for payers of unified land tax shall be filed on or before 31 March of the tax period following the reporting tax period with the tax bodies at the location of the land plots.
Chapter 63. Special tax regime for legal entity manufacturers of agricultural products and rural consumer cooperatives
Article 448. General Provisions 1. Legal entity manufacturers of agricultural products and rural consumer cooperatives shall be entitled to choose the special tax regime established by this article or the standard procedure themselves. The special tax regime for legal entity manufacturers of agricultural products and rural consumer cooperatives (hereafter the special tax regime) shall envisage a special procedure for calculating corporate income tax, value added tax, social tax, land tax, the charge for the use of land plots, property tax and tax on means of transport The special tax regime shall cover: 1) the activities of legal entity manufacturers of agricultural products to: manufacture agricultural products using land, process and realise own products; produce agricultural products from animal or poultry farming (including the breeding of pedigree livestock) operating on a full-cycle (beginning from the rearing of young animals) and from apiculture, and including the processing and realisation of those products; 2) the activities of rural consumer cooperatives to: realise agricultural products produced by farms or farm holdings that are members (share holders in) of the cooperatives; process agricultural products produced by farms or farm holdings that are members (share holders in) of the cooperatives, and realise the products obtained from processing the products.
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2.
For the purposes of this article rural consumer cooperatives shall be those rural consumer cooperatives: 1) 2) whose members (shareholders) are only farms or farm holdings; where no less than 90% of aggregate annual income is made up of income receivable (received) from the activities referred to in subpoint 2) of point 1 of this article.
3.
The following shall not be entitled to apply the special tax regime: 1) 2) 3) 4) legal entities with subsidiaries and structural subdivisions; legal entities that are affiliates of other legal entities applying the special tax regime; legal entities in which the participation interest of other legal entities is more than 25%; legal entities where one of its founders is also the founder of a different legal entity applying the special tax regime; rural consumer cooperatives whose members (shareholders) are members (shareholders) of other rural consumer cooperatives. For the purposes of this point, an affiliate shall be recognised as: 1) a legal entity that has the right to directly and (or) indirectly make decisions, and (or) influence decisions taken by another legal entity by virtue of an agreement and (or) other transaction; a legal entity in relation to which a different legal entity has the right to directly and (or) indirectly adopt decisions and (or) influence decisions, including by virtue of an agreement and (or) other transaction.
5)
2)
4.
The special tax regime shall not apply to a taxpayers activities to produce, process and realise excisable products. If activities are performed to which the special tax regime in question does not apply, taxpayers shall be obliged to maintain separate records of income, expenses and property; calculate and pay the corresponding taxes and other obligatory payments to the budget in relation to such types of activity in accordance with the procedure established by this Code.
Article 449. Tax Period The tax period for calculating corporate income tax, value added tax, social tax, land tax, the charge for the use of land plots, property tax and tax on means of transport shall be determined in accordance with articles 148, 269, 363, 370, 392, 482 and 401 of this Code. Article 450. Conditions of Use To apply the special tax regime a taxpayer should file a tax application with the tax body at its location on or before 20 February of the current calendar year. A taxpayers failure to file a tax application by the above deadline shall be regarded as its consent to make budget settlements in accordance with the standard procedure. The chosen tax regime shall not be changed during the calendar year. At the same time as filing a tax application, legal entity manufacturers of agricultural products shall file copies of identification documentation to land plots that should be notarised or certified by rural (village) executive bodies. The above documentation shall be re-filed if data in it changes when rights to other land plots arise.
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To apply the special tax regime newly created taxpayers shall file a tax application within 30 calendar days from the moment of state registration with the justice bodies. Legal entity manufacturers of agricultural products performing activities that are not covered by this special tax regime shall file a tax application for the right to apply the special tax regime should rights to a land plot arise after 20 February, likewise within 30 calendar days from the moment a record of registration is made at the location of the land plot in question. Within three working days from when a taxpayer files a tax application a tax body shall issue a decision on the application of the special tax regime or a refusal to allow the application of the special tax regime, in the format established by the authorised body. Decisions shall be drawn up in duplicate. One copy shall be served to the taxpayer in return for a signature or sent by registered mail if a taxpayer fails to appear at a tax body to receive a decision within 10 calendar days from the day the tax body takes the relevant decision. A decision sent by registered mail shall be considered as served to a taxpayer from the date the taxpayer in question signs for the correspondence with the postal or other communications organisation. Grounds for refusing to allow a taxpayer to apply the special tax regime shall be the taxpayers failure to meet the conditions referred to in articles 448 of this Code, a taxpayers failure to file the documents referred to in this article within the deadline established by this article. Article 451. Special Considerations for the Calculation of Specific Taxes and the Charge for the Use of Land Plots Corporate income tax, value added tax, social tax, land tax, the charge for the use of a land plot, property tax and tax on a means of transport calculated in accordance with the standard procedure shall be reduced by 70%. The reduction of corporate income tax stipulated by this article shall apply to corporate income tax advance payments determined in accordance with article 141 of this Code. Article 452. Deadline for the Payment of Tax and for filing Tax Reporting The taxes and charge for the use of land plots referred to in article 451 of this Code shall be paid to the budget, and related tax reporting filed in accordance with the standard procedure.
Section 19. Other obligatory payments Chapter 64. Registration fees

Article 453. General Provisions 1. Registration fees (hereafter - fees) shall be one-off payments collected by the authorised state bodies when they conclude the registration actions established by article 455 of this Code, and also when issuing a duplicate document certifying that state registration has been carried out. Registration shall be carried out by the authorised bodies (hereafter - registrars) in accordance with the procedure and in those cases established by legislation of the Republic of Kazakhstan. Registrars shall provide a tax body at their location with quarterly information on or before the 20th of the month following the reporting quarter on payers of fees and objects of taxation, in the format established by the authorised body, except for those cases stipulated by point 1 of article 583 of this Code.
2.
3.
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Article 454. Payers of Fees Payers of fees shall be individuals and legal entities in whose interests the registrars have perform registration actions in accordance with legislation of the Republic of Kazakhstan. Article 455. Object of Taxation Fees shall be collected for the following registration actions: 1) the state registration (record of registration) of: legal entities and a record of registration of branches and representative offices, and also their reregistration; individual entrepreneurs; rights to immovable property and transactions with it; collateral for movable property and a mortgage for a vessel or vessel under construction; radio electronic equipment and high frequency devices; means of transport, and also their re-registration; medicines, and also their re-registration; rights to pieces of work and objects of allied rights, licensing agreements for the use of pieces of work and objects of allied rights, and also their re-registration; published periodicals and information agencies; 2) issuing a duplicate document certifying the conclusion of the registration actions referred to in subpoint 1) of this article.
Article 456. Rates of Fees The rates of fees shall be based on the monthly calculation index set by the law on the state budget for the relevant financial year (hereafter MCI), as follows: No. 1 1 Type of registration action 2 For the state registration (record of registration) of legal entities, their branches and representative offices, as well as their re-registration for the state registration (re-registration), state registration of the termination of the activities of legal entities (including following reorganisation in those cases stipulated by legislation of the Republic of Kazakhstan); record of registration (re-registration), deregistration of their branches and representative offices legal entities, their branches and representative offices legal entities that are small businesses, their branches and representative offices political parties, their branches and representative offices 6.5 2 Rate (MCI) 3
1.1
1.1.1 1.1.2
1.1.3
14
279
1.2
for the state registration (re-registration), state registration of the termination of the activities (including following reorganisation in those cases stipulated by legislation of the Republic of Kazakhstan) of institutions financed by the budget, public institutions and cooperatives of own premises (apartments); record of registration (re-registration), deregistration of their branches and representative offices for the state registration of the termination of activities, record of registration, deregistration for re-registration for the state registration (re-registration), state registration of the termination of the activities (including following reorganisation in those cases stipulated by legislation of the Republic of Kazakhstan) of childrens and young peoples public associations, and also public associations of handicapped people; record of registration (reregistration), deregistration of their branches and representative offices, branches of national and regional national and cultural public associations for registration (including following reorganisation in those cases stipulated by legislation of the Republic of Kazakhstan) for the re-registration, state registration of the termination of activities (including following reorganisation in those cases stipulated by legislation of the Republic of Kazakhstan), deregistration for issuing duplicate certificates of state registration (re-registration) (record of registration) to legal entities, their branches and representative offices For the state registration of individual entrepreneurs: for the registration of individual entrepreneurs for issuing a duplicate document certifying the state registration of individual entrepreneurs For the state registration of rights to immovable property and transactions with it for the registration of ownership rights, rights to commercial management, operational management, trust management, pledge, rent, use (except for easement): to an apartment, detached residential house (with outbuildings and other similar objects), outbuildings to tenement houses (with outbuildings and other similar objects), nonresidential premises in a residential house, non-residential construction to garages to non-residential property complexes (buildings, structures and constructions), including: a single object between two and five detached objects 10* 15* 0.5* 2 0.25 2 1
1.2.1
1.2.2 1.3
0.5
1.3.1
1.3.2
1.4
0.25
2 2.1 2.2
3.1
3.1.1
3.1.2
8*
3.1.3 3.1.4
0.5*
3.1.4.1 3.1.4.2
280
3.1.4.3 3.1.4.4 3.2 3.2.1
between six and 10 detached objects over 10 detached objects for small businesses: for the registration of ownership rights, trust management, pledge, rent, use (except for easement) to tenement houses (with outbuildings and other similar objects), non-residential premises in a residential house, non-residential structures, non-residential property complexes (buildings, structures and constructions) for the registration of ownership rights, rights to use land, other rights (encumbered rights) to land plots for the registration of easement (irrespective of objects) for the registration of a condominium for the registration of a mortgage certificate and its subsequent transfer to other owners for the registration of changes to right holders, the identification characteristics of real estate for the registration of the termination of rights to real estate in connection with the destruction (damage) of immovable property or a rejection of rights to it and in other cases not related to the transfer of rights for the registration of the termination of encumbrance not related to the transfer of rights to a third party, including for the registration of the termination of a mortgage of immovable property for the registration of an assignment of a debt claim under a bank agreement for a secured loan for the registration of a change to a right or encumbrance as a result of a change the condition in an agreement that is the basis for the right (encumbrance) or other legal facts for the registration of other rights to immovable property, and also encumbered rights to immovable property for the registration of legal claims for the registration of an encumbrance on a right to immovable property imposed by the state bodies in accordance with the procedure stipulated by a legislative act of the Republic of Kazakhstan for the registration of a right to immovable property owned by the state, for an authorised state body exercising rights to title, use or disposal of national property, and its regional bodies for the system registration of already existing rights (encumbrances) to immovable property for the registration of changes to the characteristics of immovable property based on decisions of the state authorities, including after changes to the name of populated areas, streets, house numbers, or if cadastre numbers change due to reform in the administrative and
20* 25*
3.3
0.5*
3.4 3.5 3.6
0.5 1 0.25*
3.7
0.25*
3.8
0.25*
3.9
0.25*
3.10
0.25*
3.11
0.25*
3.12
0.5*
3.13 3.1.14
0.25 0
3.15
3.16
3.17
281
regional division of the Republic of Kazakhstan 3.18 4 for issuing duplicate documentation for immovable property For the state registration of real estate collateral, mortgage on a vessel or vessel in construction for the registration of collateral on movable property, mortgage on a vessel or vessel in construction, as well as changes and additions to, or the termination of registered collateral from individuals from legal entities for issuing a duplicate document certifying the state registration of collateral on movable property, mortgage on a vessel or vessel in construction For the state registration of radio electronic equipment and highfrequency devices: for the registration of radio electronic equipment with emission capacity of up to 10 mW inclusive, cell and long-distance communication devices with emission capacity of up to 200 mW inclusive, wireless devices with emission capacity of up to 200 mW inclusive, radio electronic equipment and high-frequency devices for amateur radio services cell and long-distance communication devices with emission capacity of up to 200 mW inclusive, wireless devices with emission capacity of up to 200 mW inclusive, GPRS devices for the registration of radio electronic equipment high-frequency devices, except for radio electronic equipment referred to in points 5.1.and 5.2 for issuing duplicate documentation certifying the state registration of radio electronic equipment and high-frequency devices those listed in point 5.2 of this table those listed in point 5.3 of this table For the state registration of vehicles, and also their re-registration: for state registration of: motor vehicles or trailers marine vessels river vessels small vessels: self-propelled small vessels, over 50 hp (37 kW) self-propelled small vessels, up to 50 hp (37 kW) 3 2 0.25 60 15 0.4 1 0 1 5 0.5 0.25
4.1
4.1.1 4.1.2 4.2
5.1
5.2
5.3
5.4
5.4.1 5.4.2 6 6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.1.4.1 6.1.4.2
282
6.1.4.3 6.1.5 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.4.1 6.2.4.2 6.2.4.3 6.2.5 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.3.4.1 6.3.4.2 6.3.4.3 6.3.5 7 7.1 7.2 7.3 8
non-self-propelled small vessels civil aircraft for the re-registration of: motor vehicles or trailers marine vessels river vessels small vessels: self-propelled small vessels, over 50 hp (37 kW) self-propelled small vessels, up to 50 hp (37 kW) non-self-propelled small vessels civil aircraft for issuing duplicate documentation certifying the state registration of: motor vehicles or trailers marine vessels river vessels small vessels: self-propelled small vessels, over 50 hp (37 kW) self-propelled small vessels, up to 50 hp (37 kW) non-self-propelled small vessels civil aircraft For the state registration of medicines, and also their re-registration for the registration of medicines for the re-registration of medicines for issuing duplicate documentation certifying state registration For the state registration of rights to pieces of work and objects of allied rights, licensing agreements to use pieces of work and objects of allied rights, and also their re-registration for the registration of rights to pieces of work and objects of allied rights for the registration of licensing agreements to use pieces of work and objects of allied rights from individuals
1.5 7
0.25 30 7.5
1.5 1 0.75 7
0.25 15 3.75
0.75 0.5 0.38 3.5
11 5 0.7
8.1 8.2
8.2.1
283
8.2.2 8.3 9
from legal entities for issuing duplicate documentation certifying state registration For the state registration (record of registration) of a printed periodical and information agencies childrens and scientific literature other subjects for issuing duplicate documentation certifying state registration of: childrens and scientific literature other subjects
3 2
9.1 9.2 9.3 9.3.1 9.3.2 Note:
2 5
1.6 4
* - The rates of the fee for the accelerated state registration of rights to immovable property and transactions with it shall be established by the Government of the Republic of Kazakhstan. Article 457. Exemption from Fees The following shall be exempt from fees: 1) for the state registration of individual entrepreneurs: farms or farm holdings; individuals registered as handicapped in groups I, II or III; repatriates (oralmans) performing business activities without creating a legal entity before obtaining citizenship of the Republic of Kazakhstan; 2) for the state registration of rights to immovable property and transactions with it: veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; and also the income of one of the parents of an individual handicapped since childhood; pensioners residing alone; repatriates (oralmans) before obtaining citizenship of the Republic of Kazakhstan; small businesses involved in training staff, for three years from state registration; 3) for the state registration of collateral for immovable property, the mortgage on a vessel or vessel in construction: veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; and also the income of one of the parents of an individual handicapped since childhood;
284
repatriates (oralmans) before obtaining citizenship of the Republic of Kazakhstan; 4) for the state registration of radio electronic equipment and high-frequency devices state institutions; for the state registration of rights to pieces of work and objects of allied rights, licensing agreements for the use of pieces of work and objects of allied rights: veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; and also the income of one of the parents of an individual handicapped since childhood; repatriates (oralmans) before obtaining citizenship of the Republic of Kazakhstan; minors. Article 458. Calculation and Payment Procedure 1. A fee shall be calculated at the established rates and paid prior to filing the relevant documentation with the registrar in the place of registration of objects of taxation. A fee paid shall not be refundable, except for those cases when persons, having paid a fee, refuse to complete registration (record of registration) before filing the relevant documents with the registrar. In this respect, the tax bodies in the place of payment shall refund fees paid to the budget once a payer has filed an application and documentation issued by the registrar, which confirms the failure of the person in question to provide the documents required to complete the registration procedure.
5)
2.
Chapter 65. Fee for the passage of vehicles through the republic of kazakhstan
Article 459. General Provisions 1. Unless otherwise stipulated by this article, the fee for the passage of motor vehicles through the Republic of Kazakhstan (hereafter - fee) shall be payable for: 1) domestic vehicles departing from the Republic of Kazakhstan and transporting passengers and freight along international routes; foreign vehicles transporting passengers and freight on international routes, entering (exiting) the Republic of Kazakhstan, transiting through the Republic of Kazakhstan; domestic and foreign heavy vehicles travelling through the Republic of Kazakhstan; domestic and foreign vehicles travelling on state toll highways, except for state toll highways transferred to concessions.
2)
3) 4)
2.
The fee shall not be collected on state toll highways from the following vehicles: 1) special means of transport: the ambulance service; the fire service; the emergency rescue service;
285
the highway patrol service; 2) the following means of transport in the absence of an alternative road: buses transporting passengers and baggage on suburban routes and routes connecting villages, auls with regional or oblast centres, the capital city or towns of national status; buses registered in accordance with the procedure established by legislation of the Republic of Kazakhstan in a specific region adjacent to a state toll highway, to transport passengers (baggage) within that region; passenger vehicles registered in accordance with the procedure established by legislation of the Republic of Kazakhstan in a specific region adjacent to a state toll highway, to transport passengers (baggage) within that region; freight vehicles, wheeled self-propelled agricultural and reclamative vehicles in a state toll highway area between the closest highway junctions crossing water and railway routes. 3. Vehicles shall pass through the Republic of Kazakhstan on the basis of permission issued by the authorised state body for transportation, unless otherwise stipulated by legislation of the Republic of Kazakhstan with respect to passage along state toll highways. The procedure relating to the passage of motor vehicles through the Republic of Kazakhstan and the issue of relevant permission shall be established by the Government of the Republic of Kazakhstan. 4. The authorised state bodies for transportation shall provide information to the tax bodies in their location on or before the 20th of the month following the reporting month on fee payers and objects of taxation, in the format established by the authorised body.
Article 460. Payers of the Fee The payers of the fee shall be individuals and legal entities using vehicles to pass through the Republic of Kazakhstan in those cases established by article 459 of this Code. Article 461. Fee Rates 1. Fee rates shall be established based on the size of the monthly calculation index set by the law on the state budget for the relevant financial year (hereafter MCI), as follows: 1) domestic vehicles departing from the Republic of Kazakhstan and transporting passengers and freight along international routes p- twice the MCI; domestic vehicles departing from the Republic of Kazakhstan and transporting passengers and freight along regular international routes, after receiving a foreign permit for one calendar year according to international treaties of the Republic of Kazakhstan 10 times the MCI; foreign vehicles transporting passengers and freight on international routes, entering (exiting) the Republic of Kazakhstan, transiting through the Republic of Kazakhstan 10 times the MCI; for domestic and foreign wide and (or) heavy vehicles travelling through the domestic and foreign heavy vehicles travelling through the Republic of Kazakhstan the fee rate shall include: a payment for the actual weight of the vehicle (laden or unladen) exceeding the permitted weight, which should be made by multiplying the fee per tonne (including parts) incomplete tonnes) by 0.005 times the MCI and by transportation distance (in kilometres); a payment for a particular vehicles axel load (laden or unladen) that exceeds permitted axel loads, which should be calculated for each loaded single, coupled or tripled axle and paid by multiplying the relevant tariffs listed in table 1 by transportation distance (in kilometres):
2)
3)
4)
286
Table 1 No. Excess actual axle weight, % Tariff for excess permitted axle weight (MCI) 3 0.011 0.014 0.190 0.380 0.500 1.0
1 1 2 3 4 5 6
2 up to 5.0% inclusive between 5.0% and 10% inclusive over 10.0% between 20.0% and 30.0% inclusive between 30% and 50.0% inclusive over 50.0%
a payment for vehicle (laden or unladen) size that exceeds the permitted width, which should be calculated for excess vehicle height, width and height and paid by multiplying the relevant tariffs listed in table 2 by the transportation distance (in kilometres): Table 2 No. Vehicle size, in metres Tariff for exceeding the permitted size (MCI) 3
1 1 1.2 1.3 1.4 2 2.1
2 Height: between 4 and 4.5 inclusive between 4.5 and 5 inclusive over 5 Width: between 2.55 (2.6 for isometric carriage body) and 3 inclusive between 3 and 3.75 inclusive over 3.75 Length: for each metre (including incomplete) exceeding the permitted length
0.009 0.018 0.036
0.009
2.2 2.3 3 3.1
0.019 0.038
0.004
2.
The fee rates for domestic and foreign vehicles travelling along state toll highways shall be set by the Government of the Republic of Kazakhstan.
287
Article 462. Calculation and Payment Procedure 1. The fee shall be calculated at the rates established by the Government of the Republic of Kazakhstan and paid before the receipt of permits, unless otherwise established by this article. The fee shall be paid to the budget at the location where permission is received and (or) where the state toll highways in question are used. The fee shall be paid to the budget by means of a transfer through a bank or organisation performing certain banking operations, or in cash at checkpoints or other specially equipped points of the authorised state body for transportation using numbered forms as established by the authorised body. The authorised state bodies for transportation shall transfer fee amounts received in cash to banks or organisations performing certain types of banking transactions on a daily basis on or before the operating day following the day the cash was received, for subsequent transfer to the budget. If daily cash receipts amount to less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, cash shall be transferred once every three operating days from the day on which it was received. When individuals pay the fee in cash the accounting forms shall include the identification number of the authorised state body for transportation. Fee amounts paid shall not be refunded. The procedure for calculating, paying and the deadline for paying the fee for domestic and foreign vehicles to travel along state toll highways to the budget shall be established by the Government of the Republic of Kazakhstan.
2.
3.
4.
5.
6. 7.
Chapter 66. Auction fee

Article 463. General Provisions The auction fee (hereafter - fee) shall be collected from the realisation of property (including property rights) at an auction. Article 464. Payers of the Fee Payers of the fee shall be either individuals or legal entities offering property (including property rights) for realisation at an auction. Article 465. Objects of Taxation 1. The object of taxation with respect to the fee shall be the realisation value of property (property rights) determined at the end of an auction. The fee shall not be charged on the value of property (property rights) realised: 1) at auctions conducted by the authorised state body and its regional bodies exercising their right to hold, use and dispose of objects of state ownership; at auctions held by executive bodies responsible for the enforcement of court orders on behalf of the state; at special open auctions realising: property on which a restriction of disposal has been imposed by the tax bodies; property pledged to secure tax obligations; 288
2.
2)
3)
an obligatory placement of authorised shares made as a result of a court ruling; 4) at auctions to realise: property confiscated by the state on the basis of a court bailiff document; property recognised as ownerless in accordance with the established procedure; property passed to the state in accordance with the established procedure; 5) 6) at auctions to realise the estate of bankrupt legal entities; at auctions to realise the liquidation estate of enforced liquidated banks, insurance and reinsurance organisations, pension savings funds; in trading sessions of a stock market operating in the Republic of Kazakhstan; at auctions to realise securities.
7) 8)
Article 466. Rates of the Fee The rate of the fee shall be 3% of the realisation value of property (property rights) determined at the end of an auction. Article 467. Calculation and Payment Procedure 1. 2. Payers shall calculate the fee independently by applying the rate to an object of taxation. Adjustments amounting to the value of sanctions credited to the budget shall be made to objects of taxation when calculating the fee from auctions held by the authorities responsible for executing court orders. The fee shall be paid at the location of the fee payer on or before the 20th of the month following the reporting month in which auctions (auction) were held. A fee paid shall not be refunded, except for cases where a court recognises a purchase and sale transaction for auction objects as invalid. In this respect, the tax body at the place of payment shall be responsible for making a refund under a tax application from the fee payer. Article 468. Tax Declaration 1. Payers of the fee shall file a fee declaration with the tax bodies in the place of their state registration as a taxpayer on or before the 20th of the month following the reporting month in which auctions (auction) took place. Auction organisers should provide quarterly information on or before the 15th of the month following the reporting quarter on fee payers and objects of taxation, in the format prescribed by the authorised body to the tax bodies at their location.
3.
4.
2.
Chapter 67. Licence fee for the right to perform certain activities
Article 469. General Provisions 1. The licence fee for the right to perform certain activities (hereafter - fee) shall be collected upon the issue (re-registration) of licences (duplicate licences) to engage in certain licensed activities in accordance with legislation of the Republic of Kazakhstan, and in other cases stipulated by this chapter. 289
2.
Licences shall be issued by the authorised body (hereafter - licensor) in accordance with the procedure and in those cases established by legislation of the Republic of Kazakhstan. Licensors shall provide the tax bodies in their location with quarterly information on or before the 15th of the month following the reporting month on fee payers and objects of taxation, in the format established by the authorised body.
3.
Article 470. Payers of the Fee The payers of the fee shall be individuals and legal entities in receipt of a licence. Article 471. Rates of the Fee The rates of the fee shall be based on the size of the monthly calculation index (MCI) set by the law on the state budget for the relevant financial year, as follows: No. 1 1 1.1 Types of licensed activities 2 Fee rates for the right to engage in certain activities: Production, transfer and distribution of electricity and heat; the operation of electricity stations, electricity networks and substations Planning and operation of mining, petrochemical, chemical, oil refining production; operation of gas, oil and oil product storage units, major gas pipelines, oil pipelines and oil product pipelines Processing of mineral stock (except for the processing of commonly occurring mineral resources) Operation of gasification systems for residential and communal facilities Planning, preparation, assembly, repair of chemical, drilling, oil industry, geological exploration, mining, metallurgy and power equipment, anti-explosion electrical equipment, winch structures, as well as boilers with a working pressure of more than 0.7 kg/cm2 and heat-carrier temperature of over 115oC, pressurised pipelines at over 0.7 kg/cm2 (except for the planning, preparation, assembly and repair of equipment used in a single technical process) Purchase of electricity for resale purposes Production and repair of measuring instruments Assembly (preparation), storage, processing and realisation of scrap metal, ferrous and non-ferrous metal waste by legal entities Work performed during the various stages if the life cycle of facilities using atomic energy Handling of nuclear materials, sources of ionised radiation (except for medical x-ray units) and radioactive substances 10 Fee rates, MCI 3
1.2
10 (500)*
1.3
10
1.4
10
1.5
10
1.6 1.7 1.8
10 10 10
1.9
230
1.10
230
290
1.11
Development, production, realisation and use of x-ray equipment, except for medical x-ray equipment Services provided in the atomic energy use sector Development of technical documentation, construction, preparation, production of transportation containers, packaging materials, containers for nuclear materials, sources of ionised radiation, radioactive materials and radioactive waste Radioactive waste handling Transportation, including transit, of nuclear materials, radioactive substances, radioisotope sources of ionised radiation, radio active waste in the Republic of Kazakhstan Activities in the territory of former nuclear testing sites and other territories contaminated as a result of nuclear explosions Physical security of nuclear installations and nuclear materials Special training of specialists and personnel in activities related to the use of atomic energy Production, processing, purchase, storage, realisation, use and destruction of toxins Activities to produce (formulate), realise, apply pesticides (toxic chemicals), and also to import pesticides (toxic chemicals) and primary components for their production, except for samples for registration, production testing and scientific research Activities to assemble, lay and maintain alarms, except for construction and assembly work Passenger transportation Transportation of hazardous freight Activities related to the circulation of narcotics, psychotropic substances and precursors Technical protection of state secrets Development and realisation (including other transfer) of means to ensure the encryption of information Development, production of special technical tools to conduct investigative work Repair and realisation of special technical tools to conduct investigative work, find technical channels for information leaks Development, production, repair, purchase and realisation of ammunition, weapons and military equipment, spare parts and related devices, as well as special materials and
200
1.12 1.13
230 230
1.14 1.15
230 50
1.16
50
1.17
230
1.18
10
1.19
10
1.20
10
1.21
10
1.22 1.23 1.24
3 3 20
1.25 1.26
9 9
1.27
20
1.28
20
1.29
22
291
equipment for their production, including assembly, tuning, use, storage, repair and service 1.30 Development, production, purchase and realisation of explosives and pyrotechnical substances, and items that apply them Liquidation (destruction, recycling, burial) and processing of fulfilled ammunition, weapons, military equipment and special equipment Development, production, repair, trade and purchase of military small arms and bullets Development, production, repair, trade, purchase, collection, exhibition of civil and military firearms and bullets, non-firing weapons, gas weapons and ammunition for them Development, production, trade and purchase of civil pyrotechnical substances and items that apply them All types of activities related to the use of outer space, including the creation, production, operation, repair and modernisation of rockets, the use of ground-level infrastructure to ensure operation (firing range, command and measurement complex, test base and others) Activities to certify that an open key for an electronic digital signature corresponds to a closed key for an electronic digital signature, and also to confirm the accuracy of registration certificates Communication services Education activities Organisation of television and (or) radio broadcasts Preparation of timber in the state forest fund by forest users Initial processing of raw cotton into cotton fibre Production of land measuring, topographic and cartographic work Medical and doctor activities Pharmaceutical activities: production, preparation, wholesale and retail realisation of medicines Provision of social services in state medical institutions and in non-state medical organisations Advocate activities Notary activities Appraisal of property (except for objects of intellectual property, the value of intangible assets) 22
1.31
22
1.32
22
1.33
3 (10)**
1.34
3 (10)***
1.35
186
1.36
25
1.37 1.38 1.39 1.40 1.41 1.42
6 10 6 10 10 10
1.43 1.44
10 10
1.45
1.46 1.47 1.48
6 6 6
292
1.49
Appraisal of objects of intellectual property, the value of intangible assets Administration of the property and affairs of insolvent debtors in bankruptcy procedures Audit activities Work and services in environmental protection Organisation and holding of lotteries (except for state (national) lotteries) Security services provided by individuals and legal entities Training and retraining of vehicle drivers Physical training and sports services, except for activities in education institutions Secondment of work force from the Republic of Kazakhstan abroad Travel agency activities, tourism instruction Veterinary activities Legal and expert activities Archaeological and (or) scientific restoration work at historical and cultural monuments Bank operations conducted by banks and organisations performing certain banking operations Other operations performed by banks Life insurance activities General insurance activities Re-insurance activities Insurance broker activities Actuary activities on the insurance market Broker activities Dealer activities Activities to keep a system of security holder registers Activities to manage investment portfolios Investment management of pension assets Custodian activities
1.50
10
1.51 1.52 1.53
10 50 10
1.54 1.55 1.56
6 10 10
1.57
10
1.58 1.59 1.60 1.61
10 6 6 10
1.62
80 (40)****
1.63 1.64 1.65 1.66 1.67 1.68 1.69 1.70 1.71 1.72 1.73 1.74
80 (40)**** 50 50 20 30 5 30 30 10 30 30 30
293
1.75 1.76 1.77
Transfer agent activities Organisation of securities and financial instrument trading Activities to attract pension contributions and make pension payments Credit bureau activities Design and survey work Construction and assembly work Production (issue) of construction materials, items and constructions (except for certified products) Expert work and engineering services in architectural, town planning and construction activities Activities to organise the construction of residential buildings using investor funds Manufacture of the state flag of the Republic of Kazakhstan and the state symbol of the Republic of Kazakhstan, and also related material objects Production of ethanol Production of alcohol, except for beer Beer production Storage, wholesale and (or) retail realisation of alcoholic products, except for storage activities, the wholesale and (or) retail realisation of alcoholic products in the territory of production Production of tobacco items Retail trade and provision of foreign cash services Export and import of goods Acceptance, weighing, drying, treatment, storage and shipment of grain Realisation of grain for export Activities in the gaming business: for casinos and gaming halls per year for totalisers and bookmakers per year
10 10 10
1.78 1.79 1.80 1.81
40 10 10 10
1.82
10
1.83
10
1.84
10
1.85 1.86 1.87 1.88
500 500 100 100
1.89 1.90 1.91 1.92
500 10 10 10
1.93 1.94
10
3,845 640
2 2.1
Fee rates for the issue of duplicate licenses: for all types of activities, except for duplicate licenses for the export and import of goods for the export and import of goods 100% of the rate for license issue 1 294
2.2
3 3.1
Rates for the re-registration of licenses: for all types of licenses, except for the re-registration of licenses for the export and import of goods for the re-registration of licenses for the export and import of goods 10% of the rate for license issue, but no more than4 MCI 1
3.2
Note: 1) * the license fee rate for licensing the following activities: the operation of oil and gas refineries 500 times the MCI; the planning and operation of mining, petrochemical, chemical production, the operation of gas, oil and oil product storage units, major gas pipelines, oil pipelines, oil product pipelines 10 times the MCI; 2) ** the license fee rate for licensing the following activities: the development, production, repair, trade, collection, exhibition of civil and military fire arms and ammunition, non-firing weapons, gas weapons and ammunition 10 times the MCI; the purchase of civil and military fire arms and ammunition, non-firing weapons, gas weapons and ammunition 3 times the MCI; 3) *** the license fee rate for licensing the following activities: the development, production and trade of civil pyrotechnic substances and items applying them 10 times the MCI; the purchase of civil pyrotechnic substances and items applying them 3 times the MCI; 4) **** the license fee for licensing activities related to banking operations: for commercial banks 80 times the MCI; for organisations performing certain banking operations 40 times the MCI. Article 472. Calculation and Payment Procedure 1. The fee shall be calculated at the established rates and paid to the budget at the payers location before the appropriate documents are filed with the licensor. Payers receiving a license for the first year of activities in the gaming business shall pay the fee before submitting the appropriate documents with the licensor. Payers that have received a license to perform activities in the gaming business shall pay the fee annually before 20 January of the current year. A fee paid shall not be refunded, except for those cases when persons, having paid the fee, refuse to conclude registration before filing the relevant documents with the registrar. In this respect, the tax body at the place of payment shall refund a fee according to a tax application from the fee payer once it has provided a document issued by the licensor confirming the failure of the person in question to provide the documents required to complete the registration procedure.
2.
3.
4.
295
Chapter 68. Fee for a permit for television and radio broadcasting organisations to use the radio-frequency spectrum
Article 473. General Provisions 1. The fee for a permit for television and radio broadcasting organisations to use the radio-frequency spectrum (hereafter - fee) shall be collected upon the issue of a permit (duplicate permit) to the television and radio broadcasting organisations of the Republic of Kazakhstan by the authorised body for communications to use the radio-frequency spectrum. The provisions of this chapter shall apply to television and radio broadcasting organisations of the Republic of Kazakhstan operating on the basis of a licence issued by the authorised body for communications. 2. The procedure for issuing a permit shall be established by the Government of the Republic of Kazakhstan. Bands (nominal frequencies) of the radio-frequency spectrum may be allocated on the basis of a competitive tender in accordance with legislation of the Republic of Kazakhstan. One-off amounts collected with respect to the allocation of bands (nominal frequencies) of the radio-frequency spectrum by competitive tender shall not be credited against the fee payable in accordance with this chapter. 4. The authorised state bodies for communications shall provide quarterly information on fee payers and objects of taxation to the tax bodies at the location of television and radio broadcast organisations on or before the 15th of the month following the reporting quarter, in the format established by the authorised body.
3.
Article 474. Payers of the Fee 1. The payers of the fee shall be the television and radio broadcasting organisations referred to in point 1 of article 473 of this Code. State institutions in receipt of a permit to use the radio-frequency spectrum to perform the basic functional duties assigned to them shall not be payers of the fee.
2.
Article 475. Rates of the Fee The rates of the fee shall be established based on the monthly calculation index set by the law on the state budget for the relevant financial year, depending on the numbers of people residing in the populated area receiving television and radio broadcasting services, on the capacity of transmission equipment and the number of television and (or) radio broadcasting channels, as follows: No. Application/range of radio frequencies Population (thousands of people) Capacity of transmission equipment (Watts) Fee rate per channel (MCI) 5
1 1
2 For a permit to use the radiofrequency spectrum: Television/metre
1.1 1.1.2
up to 10 inclusive
up to 100 inclusive
20 296
1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8 1.1.9 1.1.10 1.1.11 1.1.12 1.2 Television/high frequency
between 10 and 50 inclusive between 10 and 50 inclusive between 50 and 100 inclusive between 50 and 100 inclusive between 100 and 200 inclusive between 100 and 200 inclusive between 200 and 500 inclusive between 200 and 500 inclusive over 500 over 500
up to 500 inclusive over 500 up to 1,000 inclusive over 1,000 up to 1,000 inclusive over 1,000 up to 2,000 inclusive over 2,000 up to 5,000 inclusive over 5,000
41 83 124 249 290 435 828 1,243 2,367 3,550
1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8 1.2.9 1.2.10 1.2.11 1.3 Radio broadcasts/UHF FM
up to 10 inclusive between 10 and 50 inclusive between 10 and 50 inclusive between 50 and 100 inclusive between 50 and 100 inclusive between 100 and 200 inclusive between 100 and 200 inclusive between 200 and 500 inclusive between 200 and 500 inclusive over 500 over 500
up to 100 inclusive up to 500 inclusive over 500 up to 1,000 inclusive over 1,000 up to 1,000 inclusive over 1,000 up to 2,000 inclusive over 2,000 up to 5,000 inclusive over 5,000
13 26 52 78 155 181 272 518 777 1,479 2,219
1.3.1 1.3.2 1.3.3 1.3.4 1.3.5
up to 10 inclusive between 10 and 50 inclusive between 10 and 50 inclusive between 50 and 100 inclusive between 50 and 100 inclusive
up to 100 up to 500 inclusive over 500 up to 1,000 inclusive over 1,000
5 9 18 27 53
297
1.3.6 1.3.7 1.3.8 1.3.9 1.3.10 1.3.11 1.4 Radio broadcast/SW, MW, LW
between 100 and 200 inclusive between 100 and 200 inclusive between 200 and 500 inclusive between 200 and 500 inclusive over 500 over 500
up to 1,000 inclusive over 1,000 up to 2,000 inclusive over 2,000 up to 5,000 inclusive over 5,000
62 93 178 266 488 732
1.4.1 1.4.2
over 500 over 500
up to 100 inclusive between 100 and 1,000 inclusive between 1,000 and 10,000 inclusive between 10,000 and 100,000 inclusive from 100,000
5 15
1.4.3
over 500
30
1.4.4
over 500
45
1.4.5 2 Fee rate for a duplicate permit
over 500
89 2
Article 476. Calculation and Payment Procedure 1. The fee shall be calculated at the established rates and shall be paid to the budget at the location of television and radio broadcast organisations before a permit is received from the authorised state body for communications. A fee paid shall not be refunded, except for those cases when persons, having paid the fee, refuse to conclude registration before filing the relevant documents with the registrar. In this respect, the tax body at the place of payment shall refund a fee according to a tax application from the fee payer once it has provided a document issued by the licensor confirming the failure of the person in question to provide the documents required to receive a permit.
2.
Chapter 69. Charge for the use of land plots

Article 477. General Provisions 1. The charge for the use of land plots (hereafter - charge) shall be collected for the state to provide land plots for the temporary chargeable use of land (lease). The procedure for providing land plots for the temporary chargeable use of land shall be established by the Land Code of the Republic of Kazakhstan. The authorised state bodies for land relations, and in special economic zones local executive bodies or the administration of special economic zones, shall provide quarterly information on charge payers and objects of taxation on or before the 15th of the month following the reporting quarter, in the format prescribed by the authorised body. 298
2.
3.
Article 478. Payers of the Charge 1. The payers of the charge shall be individuals and legal entities in receipt of a land plot for the temporary chargeable use of land (lease). At the discretion of a legal entity, its business persons shall be regarded as independent payers of the charge. In the event of such a decision, a legal entity should inform the tax body where the structural subdivision has a record of registration in writing of the same within 10 working days before the start of the tax period. 3. The following shall not be payers of the charge: payers of unified land tax for land plots used in activities covered by the special tax regime for farms or farm holdings; concessionaires with respect to land plots provided to realise a concession agreement concluded in accordance with legislation of the Republic of Kazakhstan for the period referred to in a concession agreement, but no more than five years from the date a decision is adopted to provide the temporary chargeable use of land. Article 479. Object of Taxation The object of taxation shall be a land plot provided by the state for the temporary chargeable use of land. Article 480. Charge Rates The rates of the charge shall be determined in accordance with the Land Code of the Republic of Kazakhstan. In this respect, the rates for the charge shall not be lower than land tax rates, exclusive of the provision stipulated by points 2 and 5 of article 387 of this Code. Article 481. Calculation and Payment Procedure 1. The charge shall be calculated on the basis of agreements for the temporary chargeable use of land concluded with the authorised state body for land relations, and in a special economic zone with a local executive body or the administration of the special economic zone. Annual charge amounts shall be established in statements drawn up by the authorised state bodies for land relations, and in special economic zones by local executive bodies or the administration of the special economic zone. Charge statements shall be reviewed by the authorised state bodies for land relations, and in special economic zones by local executive bodies or the administration of special economic zones, if changes have been made to the terms of agreements or to the procedure for calculating land tax as established by this Code. 2. The size of the charge payable for a tax period shall be determined on the basis of the charge rates shown in statements and the period a land plot was used during a tax period. The charge shall be established at a level no lower than land tax calculated for the given land plot in accordance with this Code. Taxpayers applying the special tax regime for legal entity manufacturers of agricultural products and rural cooperatives shall calculate the charge inclusive of the special considerations established by article 451 of this Code.
2.
3.
4.
299
5.
Payers of the charge, except for those indicated in point 6 of this article, shall pay current amounts of the charge to the budget in equal portions on or before 25 February, 25 May, 25 August and 25 November of the current year. If the state provides land plots for temporary chargeable use after the above deadlines for paying the charge have passed, the first deadline for paying the charge to the budget shall be the following (next) payment deadline. If the state provides land plots for temporary chargeable use after the final payment deadline for the charge, the deadline for payment to the budget shall be the 25th of the month following the month a land plot was provided.
6.
Individuals who are not individual entrepreneurs shall pay the charge on or before 25 February of the reporting tax period. If a land plot is received after the above deadline, the charge shall be paid on or before the 25th of the month following the month a land plot is received for temporary chargeable use.
7.
Where an agreement on the temporary chargeable use of land expires or is terminated after a tax period has started, the charge payable to the budget for the remaining period shall be paid within 15 calendar days from the date the agreement expired. The charge shall be paid to the budget at the location of the land plots.
8.
Article 482. Tax Period The tax period shall be determined in accordance with article 148 of this Code. Article 483. Tax Reporting 1. Payers of the charge, except for individuals who are not individual entrepreneurs, shall file a statement of current payments with the tax bodies at the location of land plots. Payers shall file a statement of current payments on or before 20 February of the reporting tax period. Entities that have concluded an agreement for the temporary chargeable use of land once a tax period has started shall file a statement of current payments on or before the 20th of the month following the month in which the agreement was concluded. A notarised copy of an agreement on the temporary chargeable use of land concluded with the authorised state body for land relations or the administration of a special economic zone shall be filed with a statement of current payments during a first tax period. In subsequent periods, a notarised copy of an agreement shall be filed only if the value of the charge or the conditions of the agreement change. 5. If an agreement on the temporary chargeable use of land with a local executive body or administration of a special economic zone expires or is terminated once a tax period has started, a statement of current payments shall be filed no later than 10 calendar days from the day the agreement expires (is terminated).
2.
3.
4.
Chapter 70. Charge for the use of surface water resources

Article 484. General Provisions 1. The charge for the use of surface water resources (hereafter - charge) shall be collected for special water use from surface sources regardless of whether that use involves the drawing of water from those sources or not. 300
2.
Special water use shall be carried out on the basis of a permit issued by the authorised state body for the use and protection of the water fund. Special water use without the required permit shall be regarded as water use that exceeds established limits. Types of water use shall be established by water legislation of the Republic of Kazakhstan. The regional bodies of the authorised state body for the use and protection of the water fund shall provide quarterly information on charge payers and objects of taxation on or before the 15th of the second month following the reporting quarter to the tax bodies in their location, in the format established by the authorised body.
3.
4. 5.
Article 485. Payers of the Charge The payers of the charge shall be individuals and legal entities using water resources from surface sources (hereafter primary water users): 1) through stationary, mobile and floating structures for the mechanical and gravity collection of water from surface sources, and sea water; through hydraulic electricity stations; through water resource structures used to manage the fish industry; to catch fish; for water transport needs.
2) 3) 4) 5)
Article 486. Objects of Taxation 1. The objects of taxation for the charge shall be: 1) the volume of water collected from a surface water source, except for: the volume of water accumulated by dams and other retaining hydro-technical and waterregulating structures; water lost to filtration and evaporation in canals responsible for the inter-basin transfer of water, and in off-channel reservoirs that regulate water flow, which are confirmed by the authorised state body for the use and protection of the water fund on the basis of draft water system data; the volume of environmental and (or) sanitary and epidemiological flow augmentation approved by the authorised state body for the use and protection of the water fund in accordance with the procedure established by legislation; the volume of enforced water collection in irrigation facilities to prevent floods, as approved by the authorised state body for the use and protection of the water fund; 2) 3) 4) 2. the volume of electricity generated; transportation volumes by means of water transport; the volume of fish caught.
The charge shall not apply to timber rafting without haulage, recreational use, the use of earthmoving machinery and marsh draining.
301
Article 487. Rates of the Charge 1. The rates of the charge shall be established by local executive bodies for the oblast (cities of national status, the capital city) based on calculation methods approved by the authorised state body for the use and protection of the water fund. Where the actual volume of water drawn exceeds the limits established by the authorised state body for the use and protection of the water fund, the rates of the charge stipulated by point 1 of this article shall be multiplied by a factor of five for the excess.
2.
Article 488. Calculation and Payment Procedure 1. The charge shall be calculated by the taxpayer independently based on actual water use volumes and the established rates. Payers (except for taxpayers applying the special tax regimes for farms and farm holdings) shall make monthly current payments of the charge to the budget for actual water use on or before the 25th of the month following the reporting month. The charge shall be paid to the budget at the location of the special water use as specified in a permit.
2.
3.
Article 489. Specific Details of the Calculation and Payment of the Charge by Certain Categories of Taxpayers 1. Taxpayers applying the special tax regime for farms and farm holdings shall pay the charge within the deadline set by article 446 of this Code. Individuals and legal entities shall pay the charge for transporting cargo on water facilities possessing pressurised hydro-technical and water regulating structures, per tonne/kilometre of cargo transported. Heat energy enterprises shall determine the size of the charge for water used to generate heat energy for housing maintenance and utility purposes at the rates stipulated for organisations providing housing maintenance and utility services. Heat energy enterprises drawing water to cool generator units (return water consumption) within the water drawing limit, shall base the size of the charge on rates envisaged for organisations providing housing maintenance and utility services. The size of the charge for non-return water consumption shall be based on rates established for industrial enterprises.
2.
3.
4.
Article 490. Tax Period The tax period shall be determined in accordance with article 148 of this Code. Article 491. Tax Reporting 1. Payers of the charge shall file a statement of current payments with the tax bodies at the location of the special water use. Payers of the charge, except for those referred to in point 3 of this article, shall file a quarterly declaration on or before the 15th of the second month following the reporting quarter. Taxpayers applying the special tax regime for farms and farm holdings shall not file a declaration for the charge. A declaration, prior to being filed with the tax bodies, be certified by the regional body of the authorised state body for the use and protection of the water fund.
2.
3.
4.
302
Chapter 71. Charge for environmental emissions

Article 492. General Provisions 1. The charge for environmental emissions (hereafter - the charge) shall be collected for environmental emissions in accordance with the procedure for special environmental management. Special environmental management shall be carried out on the basis of an ecological permit (hereafter permit) issued by the authorised state body for environmental protection and local executive bodies for the oblasts, cities of national status, the capital city (hereafter the body responsible for issuing permits). Environmental emissions without a duly executed permit shall be regarded as environmental emissions in excess of the established limits for environmental emissions, except for pollutant emissions from mobile sources. Regional bodies of the authorised state body for environmental protection shall and local executive bodies for the oblasts, cities of national status and the capital city shall file quarterly information on or before the 15th of the second month following the reporting quarter with the tax bodies at their location, in the format prescribed by the authorised body.
2.
3.
4.
Article 493. Payers of the Charge 1. The payers of the charge shall be individuals and legal entities operating in the Republic of Kazakhstan in accordance with the procedure for special environmental management. A legal entity may designate its structural subdivisions as independent payers of the charge. If such a decision is made, a legal entity should notify the tax body where a record of registration has been made for the structural subdivision in question in writing of the same 10 days before the start of the tax period. Article 494. Object of Taxation The object of taxation shall be the actual volume of environmental emissions up to and (or) in excess of the established limits for: 1) 2) 3) pollutant emissions; pollutant discharges; production and consumer waste.
2.
Article 495. Rates of the Charge 1. The rates of the charge shall be based on the monthly calculation index set by the law on the state budget for the relevant financial year (hereafter MCI), taking into account the provisions of point 7 of this article. The rates of the charge for pollutant emissions form stationary sources shall be as follows: Types of pollutant Rate of the charge per tonne, (MCI) 3 10 10 303 Rate of the charge per kg, (MCI) 4
2. No.
1 1 2
2 Sulphur oxide Nitrogen oxide
3 4 5 6 7 8 9 10 11 12 13 14 15 16 3.
Dust and ash Lead and its compounds Hydrogen sulphide Phenols Hydrocarbons Formaldehyde Carbon monoxide Methane Soot Iron oxide Ammonia Hexatomic chrome Copper oxide Benz(a)pyrene
5 1,993 62 166 0.16 166 0.16 0.01 12 15 12 399 299 498.3
The rates of the charge for pollutant emissions from flaring associated and (or) natural gas in flares in accordance with the procedure established by legislation of the Republic of Kazakhstan shall be as follows: Types of pollutant Rate of charge per tonne, (MCI) 3 2.23 0.73 0.04
No.
1 1 2 3 4.
2 Hydrocarbons Carbon monoxide Methane
The rates of the charge for pollutant emissions into the atmosphere from mobile sources shall be as follows: Fuel type Rate per tonne of fuel used, (MCI) 3 0.33 0.45 0.24
No.
1 1 2 3
2 For lead-free gasoline For diesel For liquefied or condensed gas
304
5. No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 6. No.
The rates of the charge for pollutant emissions shall be as follows: Pollutant type 2 Nitrites Zinc Copper Biological oxygen demand Saline ammonia Oil products Nitrates Iron Sulphates (anion) Suspended substances Synthetic surface level active substances Chlorides (anion) Aluminium Rate per tonne, (MCI) 3 670 1,340 13,402 4 34 268 1 134 0.4 1 27 0.1 27
The rates of the charge for production and consumer waste shall be as follows: Waste type Rate, (MCI) per tonne per gigabecquerel (GBq) 4
1 1
2 For the disposal of production and consumer waste at landfill sites, at storage units, sanctioned dumps and specially designated locations: Communal waste (solid domestic waste, sewer silt from treatment facilities) Industrial waste, taking into account the hazard level: red list amber list green list
1.1
0.19
1.2
1.2.1 1.2.2 1.2.3
7 4 1
305
1.2.4 1.3 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 2
unclassified In addition: overburden surrounding rock enrichment waste sludge ash and ash sludge agricultural waste For the disposal of radioactive waste, in gigabecquerel (GBq): transuranic alpha-radioactive beta-radioactive encapsulated radioactive sources
0.45
0.002 0.013 0.01 0.019 0.33 0.009
2.1 2.2 2.3 2.4 7.
0.38 0.19 0.02 0.19
Coefficients shall be applied: 1) for natural monopolies for emissions generated when providing utilities services, and power companies of the Republic of Kazakhstan, against rates for the charge established in this article: point 2 0.3; point 5 0.43; line 1.3.5 of point 6 0.05; 2) for landfill sites disposing of communal waste, for the volume of solid domestic waste generated by individuals in their place of residence, against the rate set by line 1.1 of point 6 0.2.
8.
The coefficients stipulated by point 7 of this article shall not cover payments for excess emissions into the environment. Local representative bodies shall be entitled to introduce an increase of the rates set by this article by no more than two times, except for the rates set by point 3 of this article, which they may increase by no more than 20 times.
9.
10. The rates of the charge established by this article shall be increased by 10 times for an environmental emissions in excess of the established limits. Article 496. Calculation and Payment Procedure 1. The charge shall be calculated by taxpayers independently based on actual volumes of environmental emissions and the established rates. Payers making payments up to 100 times the monthly calculation index in total for the year shall be entitled to redeem environmental emission limits set by the body issuing permits. A redemption
2.
306
shall be payable in full and in advance for the current year when applying for a permit, on or before 20 March of the reporting tax period. 3. When a permit is received after the deadline established by point 3 of article 498 of this Code, the limit shall be redeemed on or before the 20th of the month following the month the permit is received. The charge shall be paid to the budget at the location of the source (object) of environmental emissions as shown in a permit, except for mobile sources of pollution for which payments are made to the budget at the place of their state registration by the authorised state body. Payers shall pay current amounts of the charge for environmental emissions on or before the 25th of the second month following the reporting quarter, except for the payers referred to in points 2 and 6 of this article. Taxpayers applying the special tax regime for farms and farm holdings shall pay the charge within the deadline set by article 446 of this Code.
4.
5.
6.
Article 497. Tax Period The tax period shall be determined in accordance with article 148 of this Code. Article 498. Tax Reporting 1. Payers of the charge shall file a declaration with the tax bodies at the location of the object of pollution, except for mobile sources of pollution for which a declaration shall be filed at their place of state registration by the body that issued a permit. A declaration shall be filed quarterly by payers of the charge, except for those referred to in points 3 and 5 of this article, on or before the 15th of the second month following the reporting quarter. Payers of the charge making payments of up to 100 times the monthly calculation index in total for the year shall file a declaration on or before 20 March of the reporting tax period. If a permit has been drawn up after the deadline established by point 3 of this article, the payers in question shall file a declaration on or before the 20th of the month following the month in which the permit is received. Taxpayers applying the special tax regime for farms and farm holdings shall not file a charge declaration.
2.
3.
4.
5.
Chapter 72. Charge for the use of wildlife

Article 499. General Provisions 1. The charge for the use of wildlife (hereafter - charge) shall be collected for making use of wildlife in accordance with the procedure for the special use of wildlife. Special use of wildlife shall be made based on a permit for the use of wildlife issued by the authorised state body for the protection, reproduction and use of wildlife (hereafter permit). The types of use of wildlife shall be established by a legislative act of the Republic of Kazakhstan. The charge for the use of rare and endangered animal species shall be established in each individual case by the Government of the Republic of Kazakhstan when issuing a permit for the removal of such animals from their natural environment. The charge shall not be collected when:
2.
3. 4.
5.
307
1) removing animals from their natural environment for branding, ringing, migration, acclimatisation, artificial breeding and cross-breeding for scientific and research and business purposes with their subsequent release into their natural environment; 2) using wildlife which are the property of individuals and legal entities, which have been bred by artificial means, and which are being kept in captivity and (or) in semi-free conditions; the authorised state body for the protection, reproduction and use of wildlife controls the catching of fish and other marine wildlife to support biological regeneration in the use of fish resources and other types of marine wildlife; when the removal of wildlife species needs to be regulated to protect the health of the population; prevent disease in agricultural and other household animals; prevent harm to the environment; warn of the danger of harming agricultural activities.
3)
4)
6.
The regional divisions of the authorised state body for the protection, regeneration and use of wildlife shall provide quarterly information on payers of the charge and objects of taxation on or before the 15th of the month following the reporting quarter to the tax bodies in their location, in the format established by the authorised state body.
Article 500. Payers of the Charge The payers of the charge shall be individuals and legal entities who have received the right to the special use of wildlife in accordance with the procedure established by a legislative act of the Republic of Kazakhstan. Article 501. Rates of the Charge 1. The rates of the charge shall be established by the Government of the Republic of Kazakhstan set by the law on the state budget for the relevant financial year. The rates of the charge for commercial, amateur and game hunting in the Republic of Kazakhstan shall be as follows: Species of wild animals Rates of the payment per specimen (MCI) commercial hunting amateur and game hunting 4
2.
No.
1 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
2 Mammals Elk (male) Elk (female) Elk (young) Siberian deer (male) Siberian deer (female) Siberian deer (young) Askan deer (male) Askan deer (female)
16 11 6 13 7 4 9 5
308
1.9 1.10
Askan deer (young) Roe deer (northern part of its habitat, male) Roe deer (northern part of its habitat, female, young) Roe deer (southern part of its habitat, male) Roe deer (southern part of its habitat, female, young) Siberian mountain goat (male) Siberian mountain goat (female, young) Musk deer Wild boar (male) Wild soar (female, young) Saiga (male) Saiga (female, young) Brown bear (except for tyan-shyan bears) European beaver, otter (except for central Asian beavers) Sable Marmot (except for Menzbir marmot) Beaver-rat Badger, fox Corsac American mink Lynx (except for the Turkestan lynx) Hares (tolai, grey hare, white hare) Raccoon dog, raccoon, wolverine, mountain weasel, weasel, stoat, Siberian striped weasel, steppe polecat, common squirrel Large-toothed suslik Wolf Jackal
3.5 4
1.11
1.12
1.13
1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22
4 3 1
4 3.5 2 4 3 5 4 14 2
1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31
2 0.060 0.045 0.10 0.045 0.12 0.010 0.020
4 0.12 0.9 0.20 0.10 0.25 0.45 0.045 0.35
1.32 1.33 1.34
0.015 0 0
0.025 0 0
309
2 2.1 2.2 2.3 2.4 2.5 2.6
Birds Diver (red-throated and black-throated) Wood grouse Heath cock Snow cock Pheasant Goose (gray, white-fronted and bean) and brant Duck* (roody shelduck, common shelduck, mallard, European teal, gadwall, wigeon, pintail, garganey, shoveler, rufous-crested duck, bluebill, tufted duck, greater scaup duck, long-tailed duck, common goldeneye, king eider, scoter, magpie diver, red-breasted merganser and goosander) Common coot, pewit, partridge (willow grouse, ptarmigan, see-see partridge and Daurian partridge), chukar, hazel hen, dove (ringdove, stock dove, rock dove and blue hill pigeon), turtledove (common and eastern), sandpiper (ruff, jacksnipe, common snipe, Swinhoe's snipe, pin-tailed snipe, solitary snipe, great snipe, woodcock, Eurasian curlew, whimbrel, black-tailed godwit and bar-tailed godwit) Quail 0.015 0.020 0.020 0.030 0.15 0.055 0.20 0.060 0.045
2.7
0.010
0.020
2.8
0.005
0.010
2.9
0.005
0.010
* Except for species entered in the Red Book of the Republic of Kazakhstan. 3. No. The rates of the charge for the use of wildlife used in the fishing industry shall be as follows: Types of water animals Rates of charge (MCI) per specimen 1 1. 1.1 2 For commercial and scientific purposes: Sturgeon (hausen, sturgeon, starred sturgeon, starlet and barbel sturgeon) Herring (Alosa sapidissima and blackbacked shad), white mullet, flounder and sprat) Salmon (coast rainbow trout, lenok and grayling) 0.064 3 per kilogram 4
1.2
1.3
0.017
310
1.4
Cisco (whitefish, peled and broad whitefish) Caspian roach Seal Large ordinary fish: Grass carp, European carp, carp, asp, Volga zander, sheatfish, freshwater cod, silver carp, pike, mudfish and pike-perch Small ordinary fish: Bream, roach, chub, royal fish, nase, osman, ide, crucian carp, bass, tench, dace, redeye, silver bream, sawbelly, silvereye, zope, sabrefish, buffalo and marinka Sport and recreational fishing: With confiscation: Large ordinary fish Hausen Sturgeon Cisco and salmon Small ordinary fish Crayfish Based on the principle caught-let go: Large ordinary fish Sturgeon (hausen, sturgeon, starred sturgeon, starlet and barbel sturgeon) Cisco and salmon Small ordinary fish 4.97 0.008 1.93
0.012
1.5 1.6 1.7 1.7.1
0.004
0.013
1.8 1.8.1
0.004
2 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.2 2.2.1 2.2.2
0.017 6.5 5.5 0.042 0.008
0.1
2.2.3 2.2.4 4.
0.27 0.068
The rates of the charge for the use of wildlife used for other commercial purposes (except for hunting and fishing) shall be as follows: Types of animals Rates of charge (MCI) per specimen per kilogram 4
No.
1 1.
2 Mammal:
311
1.1 1.2 2. 2.1
African wild cat Forest dormouse Birds: Little dabchick, black-necked grebe, Slavonian grebe, red-necked grebe, great-crested grebe, great cormorant, bittern, black-crowned night heron, common and purple heron Great white heron Gray plover, lesser golden plover, golden plover, ring plover, little ringed plover, Mongolian dotterel, Caspian dotterel, oriental dotterel, red-capped dotterel, common dotterel, turnstone, rail, spotted crake, little crake, marsh crake, gray moorhen, sandpiper, magpie, green sandpiper, wood sandpiper, greenshank, redshank, dusky redshank, marsh sandpiper, common sandpiper, Terek sandpiper, gray phalarope, red-necked phalarope, little stint, red-necked stint, long-toed stint, Temminck's stint, curlew sandpiper, black-bellied sandpiper, sharp-tailed sandpiper, sanderling, broad-billed sandpiper, common and black-winged pratincole, ringdove, myna, Alpine chough, common starling, common goldfinch, red-naped brambling, roller, lark (crested, short-toed, slender-billed, gray, brackish, calandra, eastern calandra, white-winged, black, horned, wood, sky and small sky), red-billed chough and rock thrush Goshawk Sparrow-hawk, scops-owl, horned owl, boreal owl, long-eared owl, shorteared owl and buzzard Reptiles: Steppe tortoise and fresh-water turtle Steppe agama, toad agama, sunwatcher and plate-tailed gecko Mamushi Pallas' coluber, oriental and sand boa Lake frog
0.030 0.015
0.010
2.2 2.3
0.015 0.005
2.4 2.5
0.010 0.045
3. 3.1 3.2
0.020 0.010
3.3 3.4 3.5
0.045 0.035 0.005
312
4. 4.1 4.2 4.3 4.4
Water invertebrate: Brine worm (cyst) Freshwater hoppers and water flea Leech Other water invertebrate and cysts 0.045 0.010 0.030 0.005
Article 502. Calculation and Payment Procedure 1. Payers shall calculate charge payments themselves based on established rates and the number of animals (weight for specific species of aquatic animals). Payers shall pay the charge to the budget before receiving a permit at the place it uses wildlife or at the payers location by transferring payment through a bank or organisation performing certain banking operations. Any amounts of the charge paid shall not be refundable.
2.
3.
Chapter 73. Charge for the use of the forest

Article 503. General Provisions 1. The charge for the use of the forest (hereafter - charge) shall be collected for the following types of forest use at state forest fund sites: 1) 2) 3) logging; the preparation of soft resin and wood sap; the preparation of secondary timber resources (bark, branches, stumps, roots, leaves, buds and bushes); secondary forest use (hay-cutting, cattle grazing, deer breeding, wild animal breeding, placing of bee-hives and apiaries, horticulture, melon growing and the growing of other agricultural cultures, the procurement and collection of medicinal plants or commercial raw materials, wild fruit, nuts, mushrooms, berries and other edible forest resources, moss, leaf-litter and fallen leaves, reeds); the use of state forestry reserve sites for: cultural-recreational, recreational, tourist and sporting; hunting; scientific research. 2. The procedure for the use of forest resources at state forestry reserve sites shall be established by forestry legislation of the Republic of Kazakhstan. The right to use state forestry reserve sites shall be provided on the basis of a felling license and forest license (hereafter permit), which are issued in accordance with the procedure and within the deadline established by forestry legislation of the Republic of Kazakhstan. State forest owners shall provide quarterly information on or before the 15th of the second month following the reporting quarter to the tax bodies in their location on charge payers and objects of taxation, in the format established by the authorised body. 313
4)
5)
3.
4.
Article 504. Payers of the Charge 1. The payers of the charge shall be state forest owners, individuals and legal entities that have received the right to use the forest in accordance with the procedure established by a legislative act of the Republic of Kazakhstan. Private forest owners engaging in forestation activities in their own forest fund sites or under longterm land use rights in accordance with the Land Code of the Republic of Kazakhstan shall not be payers of the charge.
2.
Article 505. Objects of Taxation The object of taxation for the charge shall be the volume of timber used and (or) the area of the forestry reserve granted for use, including in highly protected nature reserves, except for: 1) timber pulled up at the root while controlling the composition and form of plantations, and also regulating density in young plants (light admission, isolation) and felling associated with the reconstruction of low-value forest ranges and landscapes; timber resources, soft resin, secondary timber resources removed for scientific research.
2)
Article 506. Rates of the Charge 1. The rates of the charge, except for those referred to in point 2 of this article, shall be established by local representative bodies for the oblasts (cities of national status, the capital city) on the basis of calculations made by local executive bodies in accordance with the procedure determined by the authorised state body for forestry management. The basic rates of the charge for timber removed at the root shall based on the monthly calculation index set by the law on the state budget for the relevant financial year, per cubic metre of timber (m3), as follows: Timber depending on the diameter of the upper tree long-distance without bark (MCI) No. Hardy-shrub species large (>25cm) 1 1. 2. 3. 4. 5. 6. 7. 8. 2 Pine Spruce Siberian spruce, fir Larch Cedar Arbuscle juniper Oak and ash tree Black alder, maple, elm and lime tree Saxaul 3 1.48 1.93 1.34 1.19 2.67 1.79 2.67 0.60 medium (1324cm) 4 1.05 1.37 0.95 0.85 1.91 1.26 1.91 0.42 small (3-12cm) 5 0.52 0.68 0.48 0.41 0.93 0.63 0.93 0.21
2.
Firewood with bark (MCI)
6 0.21 0.27 0.16 0.15 0.23 0.27 0.41 0.14
9.
0.60
314
10. 11.
Birch Aspen, arbuscle willow and cottonwood Walnut tree and pistachio tree Apricot tree, robinia, alycha, hawthorn, cherry tree, oleaster, mountain ash, plum tree, bird cherry tree, mulberry tree, apple tree and other trees Juniper and mountain pine Tamarisk Siberian pea shrub, marsh elder, sea-buckthorn, salt tree and other shrubs
0.69 0.52
0.48 0.37
0.23 0.18
0.16 0.11
12.
3.24
2.32
1.15
0.35
13.
1.90
1.35
0.68
0.23
14. 15. 16.
0.34 0.3 0.19
0.18 0.25 0.12
3.
The following coefficients shall be applied to the charge rates: 1) depending on the distance of the felling site from public vehicle highways: up to 10km 1.30; 10.1-25km 1.20; 25.1-40km 1.00; 40.1-60km 0.75; 60.1-80km 0.55; 80.1-100km 0.40; more than 100km 0.30. The distance of a felling area from public vehicle highways shall be determined using maps as the shortest distance from the centre of the felling area by road and adjusted according to the local terrain by the following coefficients: flat terrain 1.1; hilly terrain or marshland 1.25; mountainous terrain 1.5; 2) 3) 4) for making intermediate cuttings 0.6; for making selective final cuttings 0.8; for removing timber on mountain slopes steeper than 20o 0.7.
4.
For brush wood (wood at the root) created when timber is removed at the root, the charge rate shall be set at 20% of the rate for the relevant type of fire wood, as indicated in point 2 of this article. 315
Article 507. Calculation and Payment Procedure 1. 2. The charge amount shall be calculated by state forest owners and indicated in a permit. The amount of the charge payable shall be determined: when removing timber at the root based on the volume of forest use and the rates of the charge taking into account the coefficients established by article 506 of this Code; for other types of forest use based on the volume and (or) area of forest use, the rates of the charge for other types of forest use set by local representative bodies for the oblasts (cities of national status, the capital city). 3. The charge shall be paid to the budget at the location of a forest use objects within the following deadlines: 1) for long-term forest use quarterly in equal portions of the annual volume of forest use on or before the 20th of the month following the reporting quarter; for short-term forest use before or on the day permits are received. In this respect, a permit should include a note on any payment made and the details of the payment document; for timber removed at the root quarterly in equal portions of the annual charge for felling licenses on or before the 15th of the month following the reporting quarter.
2)
3)
4.
If after removing timber at the root, soft resin, sap and secondary timber resources the total quantity of prepared timber, soft resin, sap and secondary timber resources does not match the quantity (area) stipulated in a felling ticket, state forest owners shall recalculate the charge for the actual volume felled. A recalculated amount of the charge shall be paid at the next payment deadline. The charge shall be paid for undercuts transferred for felling by the next deadline, and also cutting areas not yet felled from the previous year in accordance with the procedure established by article 506 of this Code. An amount of the charge shall be paid by transfer through a bank or organisation performing certain banking operations, or by paying cash at the cash desks of state forest owners using prenumbered forms as established by the authorised body. State forest owners shall transfer charge amounts received in cash to banks or organisations performing certain types of banking transactions on a daily basis on or before the operating day following the day the cash was received, for subsequent transfer to the budget. If daily cash receipts amount to less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, cash shall be transferred once every three operating days from the day on which it was received. When individuals pay the charge in cash accounting forms shall include the identification number of the state forest owners. A refund of the charge paid shall not be made, except for when the Government of the Republic of Kazakhstan or the authorised state body for the forestry reserve, within its competence in accordance with forestry legislation of the Republic of Kazakhstan, adopt a decision to ban the use of forest resources if there is threat of the degradation or death of the forest. In this respect, the tax body at the place of payment shall refund any charge paid according to a payers tax application after a payer has filed a document issued by state forest owners confirming non-use of a felling license or forest license.
5.
6.
7.
8.
9.
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Chapter 74. Charge for the use of highly protected nature reserves
Article 508. General Provisions 1. The charge for the use of highly protected nature reserves (hereafter - charge) shall be collected for the use of specially protected nature reserves of the Republic of Kazakhstan, except for state natural monuments, state wildlife sanctuaries, state areas of outstanding natural beauty for scientific, ecological awareness, cultural and educational, training, tourist, recreational and limited economic purposes, as determined by the Law of the Republic of Kazakhstan On Highly Protected Nature Reserves. Conservation organisations shall provide the tax bodies in their location with quarterly information on or before the 15th of the month following the reporting quarter on charge payers and objects of taxation, in the format prescribed by the authorised body.
2.
Article 509. Payers of the Charge 1. The payers of the charge shall be individuals and legal entities making use of highly protected nature reserves of the Republic of Kazakhstan. The following shall not be payers of the charge: individuals permanently residing in populated areas and (or) owning dachas within the boundaries of highly protected nature reserves; conservation organisations as determined by the Law of the Republic of Kazakhstan On Highly Protected Nature Reserves. Article 510. Rates of the Charge 1. The rates of the charge for the use of highly protected nature reserves of national status shall be 0.1 of the monthly calculation index set by the law on the state budget for the relevant financial year, for each day a highly protected nature reserve is visited. The rates of the charge for the use of highly protected nature reserves of local status shall be set by local representative bodies for the oblasts (cities of national status, the capital) at the request of local executive bodies for the oblasts (cities of national status, the capital).
2.
2.
Article 511. Calculation and Payment Procedure 1. Payers shall calculate the charge themselves based on the established rates and the number of days spent in a highly protected nature reserve, except for those cases stipulated by this point. Individuals and legal entities owning land plots, and land users within the boundaries of highly protected nature reserves shall pay the charge for: 1) 2) the use of employees for each employee; permanent treatment, leisure and sporting institutions located in a highly protected nature reserve for each individual residing in those institutions. If an individual is able to provide confirmation of payment of the charge, a repeat payment shall not be made.
2.
Payers of the charge may be allowed to use specially protected nature reserves only if they have documentation confirming payment of the charge. The charge shall be paid at the location of the highly protected nature reserve. The charge shall be paid to the budget by bank transfer or through an organisation performing certain banking operations, or paid in cash at entry points, or at other specially equipped places established by conservation organisations as determined by a legislative act of the Republic of 317
3. 4.
Kazakhstan on highly protected nature reserves, using pre-numbered forms in the format established by the authorised body, or cash register receipts. 5. The conservation organisations determined by the Law of the Republic of Kazakhstan On Highly Protected Nature Reserves shall transfer charge amounts received in cash to banks or organisations performing certain types of banking transactions on a daily basis on or before the operating day following the day the cash was received, for subsequent transfer to the budget. If daily cash receipts amount to less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, cash shall be transferred once every three operating days from the day on which it was received, unless otherwise established by this point. If daily cash receipts amount to less than 10 times the monthly calculation index, cash shall be credited to the budget once every three operating days from the day on which cash was accepted. 6. If individuals pay the charge in cash, pre-numbered forms shall include the identification number of the conservation organisations determined by the Law of the Republic of Kazakhstan On Specially Protected Natural Reserves. Amounts of the charge paid shall not be refundable. The charge for the use of wildlife and forest resources in highly protected nature reserves shall be made in accordance with articles 502 and 507 of this Code.
7. 8.
Chapter 75. Charge for the use of the radio-frequency spectrum

Article 512. General Provisions 1. The charge for the use of the radio-frequency spectrum (hereafter - charge) shall be collected for bands or ranges of the radio-frequency spectrum allocated by the authorised state body for communications (hereafter - nominal frequencies of the radio-frequency spectrum). The right to use the radio-frequency spectrum shall be certified by permits issued by the authorised state body for communications in accordance with the procedure established by legislation of the Republic of Kazakhstan. Nominal frequencies of the radio-frequency spectrum may be allocated on a competitive basis in accordance with legislation of the Republic of Kazakhstan. In this respect, the winner of a competitive tender shall make a one-off payment to the state budget in accordance with the procedure and within the limits established by legislation of the Republic of Kazakhstan. 4. A one-off charge payable to the budget in accordance with point 3 of this article shall not be credited against the charge. The regional authorised state bodies for communications shall provide the tax bodies in their location with quarterly information on or before the 15th of the month following the reporting quarter on charge payers and objects of taxation, in the format established by the authorised body.
2.
3.
5.
Article 513. Payers of the Charge 1. The payers of the charge shall be individuals and legal entities that have received the right to use the radio-frequency spectrum in accordance with the procedure established by a legislative act of the Republic of Kazakhstan. The following shall not be payers of the charge: 1) state institutions using the radio-frequency spectrum when performing the basic functional duties assigned to them;
2.
318
2) 3) 4)
the payers referred to in article 474 of this Code; individual radio amateurs; radio station owners in the SW range (27 Mhz) for frequencies used for one station.
Article 514. Rates of the Charge Annual charge rates shall be based on the monthly calculation index set by the law on the state budget for the relevant financial year, depending on the type of radio communication and nominal (frequency range) of the frequencies used, radio extension sets, areas of use, and also the amount of people residing in the populated area being provided communication services, as follows: No. 1 1 Type of radio communication 2 Personal radio paging system (assigned frequency of 25 khz) Trunk communications (for a 25 khz reception radio channel/ 25 khz transmission channel cities of Astana and Almaty populated area with a population of over 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls, rural districts UHF radio communication (for a duplex 25 khz channel for reception/25 khz) cities of Astana and Almaty populated area with a population of over 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls, rural districts UHF radio communication (for a simplex 25 khz channel) cities of Astana and Almaty populated area with a population of over 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls, rural districts 30 20 80 60 140 80 Area of use 3 oblast, cities of Astana and Almaty Rate, (MCI) 4 10
1) 2)
3)
10
1) 2)
3)
15
10
319
SW communication (for one frequency assignment) with transmitter output of: up to 50 watts;
oblast, cities of Astana and Almaty
10 over 50 watts 20 6 Radio extension (per channel) oblast, cities of Astana and Almaty oblast, cities of Astana and Almaty 2
Mobile communication (per frequency band of 10 khz for reception/ 10 khz for transmission) GPRS (for a duplex frequency band of 110 khz for reception/ 100 khz for transmission) Satellite communication with HUB technology (for a band width of 100 khz for reception/ 100 khz for transmission, used in HUB) Satellite communication without HUB technology (for frequencies used by a single station) Radio relay lines (for a duplex channel over one span): local
55
Republic of Kazakhstan
20
30
10
100
11
1)
region, city, town, aul, rural district Republic of Kazakhstan
40
2) 12
zonal and major Wireless radio access (for a 25 khz duplex channel for reception/ 25 khz for transmission)
10
1)
populated area with a population of over 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls, rural districts Wireless radio access using broadband technology (for a 2 mhz duplex reception channel/ 2 mhz transmission channel) cities of Astana and Almaty populated area with a population of over 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls,
25
2)
13
1) 2)
140 70
3)
320
rural districts 14 Terrestrial and cable television (for an 8 mhz frequency band) populated area with a population of over 200,000 populated area with a population of between 50,000 and 200,000 town of regional status with a population of up to 50,000 remaining administrative and regional units (towns of regional status, regions, villages, auls, rural districts Marine radio communication (radio modem, coastal communication, remote metering, radar etc), per radio channel oblast 300
1)
2)
135
3)
45
4)
15
10
Note. When using the radio-frequency spectrum for testing, competitions, exhibitions and other events for up to six months inclusive, the charge shall be set depending on the type of radio communication and the coverage area of the radio-frequency spectrum in an amount that meets the period of its actual use, but no less than 1/12 of the annual charge rate. If machinery is used that requires a duplex channel frequency differing from that in the rates listed in this article, the rates of the charge shall be determined based on the relative density of the actual band width of the duplex channel used by the payer against the band width of the duplex channel listed in the rates in this article. When using broadband technology the charge shall be collected for a 2 mhz reception/2mhz transmission band. Article 515. Calculation and Payment Procedure 1. The charge shall be calculated by the authorised state body for communications in accordance with the technical parameters specified in permits and on the basis of annual rates depending on the type of radio communication and the coverage area of the radio-frequency spectrum. Where the period of use of the radio-frequency spectrum in a reporting tax period is less than one year, the charge shall be determined by dividing the charge calculated for the year by 12 and multiplying it by the relevant number of months the radio-frequency spectrum is used in the year. The authorised state bodies for communications shall serve a notice to taxpayers indicating the annual charge to be levied on or before 20 February of the current reporting period. Where a permit authorising the use of the radio-frequency spectrum is received after the deadline established in point 3 of this article, the authorised state body for communications shall send notice of the charge to be levied to taxpayers on or before the 20th of the month following that in which the taxpayer received the permit to use the radio-frequency spectrum. The annual charge shall be paid to the budget in the payers location in equal instalments on or before 25 March, 25 June, 25 September and 25 December of the current year.
2.
3.
4.
5.
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6.
Where a permit the use of the radio-frequency spectrum is received after the deadline specified in point 3 of this article, the first payment deadline shall be the deadline following the date the permit is received.
Article 516. Tax Period The tax period shall be determined in accordance with article 148 of this Code. Article 517. Tax Reporting 1. Payers of the charge shall file an annual statement of current payments with the tax bodies in the place of their record of registration on or before 20 March of the reporting tax period. Where the right to use the radio-frequency spectrum is received after the date specified by point 3 of article 515 of this Code, payers shall file a statement of current payments on or before the 20th of the month following the month in which a notice issued by the authorised state body is received.
2.
Chapter 76. Charge for the provision of long-distance and (or) international telephony, and cellular communication
Article 518. General Provisions 1. The charge for the provision of long-distance and (or) international telephony, and cellular communication (hereafter - charge) shall be collected for the right to provide: 1) 2) 2. long-distance and (or) international telephony services; cellular communication services.
The right to provide long-distance and (or) international telephony, and cellular communication (hereafter - right) shall be verified by permits issued by the authorised state body for communications, in accordance with the procedure established by legislation of the Republic of Kazakhstan. The regional authorised state bodies for communications shall provide the tax bodies in their location with quarterly information on the 15th of the month following the reporting quarter on payers of the charge and objects of taxation, in the format established by the authorised body.
3.
Article 519. Payers of the Charge Payers of the charge shall be individuals and legal entities acting as long-distance and (or) international telephony, and cellular communication operators, and who have obtained the right to do so in accordance with the procedure established by the Law of the Republic of Kazakhstan On Communications. Article 520. Rates of the Charge The annual rates of the charge shall be set by the Government of the Republic of Kazakhstan. Article 521. Calculation and Payment Procedure 1. The authorised state body for communications shall calculate the charge using payers income from providing electronic communication (telecommunication), based on annual rates. If the period for the provision of long-distance and (or) international telephony, and cellular communication, in a reporting period is less than one year, the charge shall be determined by dividing the charge calculated for the year by 12 and multiplying the result by the appropriate 322
2.
number of months that long-distance and (or) international telephony, and cellular communication are provided in the year. 3. The authorised body for communications shall issue notification indicating the annual charge and send it to the payer on or before 20 February of the current reporting period. If a permit confirming a right is received after the deadline established in point 3 of this article has passed, the authorised state body for communications shall send notification to the taxpayer indicating that the charge should be paid on or before the 20th of the month following the month the taxpayer receives a permit to provide long-distance and (or) international telephony, and cellular communication. An annual charge shall be paid to the budget according to the taxpayers location in equal instalments on or before 25 March, 25 June, 25 September and 25 December of the current year. If a permit certifying a right is received after the deadline established in point 3 of this article, the first payment deadline shall be the next deadline following the date the permit is received.
4.
5.
6.
Article 522. Tax Period The tax period shall be determined in accordance with article 148 of this Code. Article 523. Tax Reporting 1. Payers shall file an annual statement of current payments with the tax bodies in their location on or before 20 March of the reporting tax period. If a right is received after the deadline established by point 3 of article 521 of this Code has passed, a payer shall file a statement of current payments on or before the 20th of the month following the month notification issued by the authorised state body for communications is received.
2.
Chapter 77. Charge for the use of navigable waterways

Article 524. General Provisions 1. The charge for the use of navigable waterways (hereafter - charge) shall be collected for the use of navigable waterways of the Republic of Kazakhstan. The right to use navigable waterways of the Republic of Kazakhstan shall be granted by a permit issued by the authorised state body for transportation control for each calendar year. In the absence of the appropriate permit, the basis for collecting and paying the charge to the budget shall be the actual use of navigable waterways of the Republic of Kazakhstan. The authorised body for transportation control shall provide monthly information to the tax bodies in their location on or before the 15th of the following month on payers of the charge and objects of taxation.
2.
3.
4.
Article 525. Payers of the Charge 1. The payers of the charge shall be individuals and legal entities using navigable waterways of the Republic of Kazakhstan. State institutions shall not be payers of the charge.
2.
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Article 526. Rates of the Charge The rates of the charge shall be set at 0.26 times the monthly calculation index set by the law on the state budget for the relevant financial year per gross registered tonne. Article 527. Calculation and Payment Procedure 1. The charge to be collected from the users of navigable waterways shall be determined based on the rates of the charge and the actual term of use of the navigable waterways specified in a permit, but shall be no less than the charge payable for one calendar month. The monthly charge shall be determined by dividing the charge calculated for the year by the navigation period established by the authorised state body for transportation control for the current year. The charge payable to the budget for the current month shall be transferred on or before the 25th of the following month. On receipt of a permit, payers of the charge shall file a document with the authorised state body for transportation control confirming payment of the charge to the budget for the first month of use of the navigable waterways of the Republic of Kazakhstan. Foreign nationals, stateless individuals and foreign non-resident legal entities making one-off stops shall pay the charge to the budget at the monthly rate before receiving a permit. If they spend more than one month on the navigable waterways of the Republic of Kazakhstan the charge shall be paid to the budget in accordance with the procedure established by this article. The charge shall be paid to the budget where use of the navigable waterways has taken place, as indicated in a permit. Any charge amounts paid shall not be recoverable.
2.
3.
4.
5.
6.
7.
Chapter 78. Charge for the placement of outdoor (visual) advertising

Article 528. General Provisions 1. The charge for the placement of outdoor (visual) advertising (hereafter - charge) shall be collected for the right to place outdoor (visual) advertisements on stationary advertising objects alongside public highways, in open spaces outside of premises in populated areas in the Republic of Kazakhstan in the form of placards, stands, illuminated signs, billboards, transparencies, posters and on outdoor (visual) advertisement objects on vehicles. The placement of an outdoor (visual) advertisement (hereafter - advertisement) shall be carried out: 1) on the basis of a document issued by the authorised body for highways (hereafter - highway authority) for a specified term in accordance with the procedure established by legislation of the Republic of Kazakhstan, where advertisements are placed alongside public highways; on the basis of a permit issued by local executive bodies in accordance with the procedure established by legislation of the Republic of Kazakhstan for placing outdoor advertising in populated areas. It shall be prohibited to place advertisements without the appropriate documents. 3. In the absence of the appropriate permit, the grounds for collecting and paying the charge to the budget shall be the actual placement of outdoor (visual) advertisements.
2.
2)
324
4.
The highway authorities and local executive bodies shall provide the tax bodies in their location with monthly information on or before the 15th of the month on payers of the charge and objects of taxation, in the format established by the authorised body.
Article 529. Payers of the Charge 1. The payers of the charge shall be individuals (including individual entrepreneurs) and legal entities placing advertisements. The state bodies of the Republic of Kazakhstan shall not be payers of the charge with respect to outdoor (visual) advertising where such advertisements are erected in connection with the fulfilment of their functions.
2.
Article 530. Rates of the Charge 1. The rates of the charge shall be determined based on the monthly calculation index set by the law on the state budget for the relevant financial year. The monthly rates of the charge for the placement of outdoor (visual) advertising alongside public vehicle highways of national statues, where the area of the advertisement is less than three square metres, shall be: Road category 2 Town approaches I, II III IV Rate, (MCI) 3 25 20 10 5
2.
No. 1 1 2 3 4
For the installation of oversized advertising information, monthly rates of the charge shall increase in proportion to the area by which the area of the advertisement exceeds 3 m2. 3. The base monthly rates of the charge for advertisements placed alongside public vehicle highways of local status and in populated areas, and also on vehicles, shall be established based on the area and location of the advertisement, as follows: Type of advertisement Rate (for one side) (MCI) Towns of national status Towns of oblast status 4 Remaining towns of regional status, villages, villages, 5
No.
1 1 1.1
2 On immovable objects: Signs, sign boards, information boards up to 2m2 (per object) Light boxes (city format) Advertising and information objects with an area of:
1.2 1.3
325
1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.4
between 2 and 5 m2 between 5 and 10 m2 between 10 and 20 m2 between 20 and 30 m2 between 30 and 50 m2 between 50 and 70 m2 over 70 m2 Roof-top neon advertising constructions (light-diode panel or three-dimensional neon letters) up to 30 m2 over 30 m2 Advertisement on tents, chatri, marquees awnings, umbrellas, flags, pennants, standards: up to 5 m2 between 5 and 10 m2 over 10 m2 Advertisements on temporary kiosks and pavilions: up to 2 m2 between 2 and 5 m2 between 5 and 10 m2 over 10 m2 Remote advertising constructions On movable objects: Advertisement on the exterior of vehicles (per unit): on buses, trolley buses, trams, freight and special vehicles (loading capacity of more than 1.5 tonnes), self-propelled machines and mechanisms on minibuses, taxis, cars (loading capacity up to 1.5 tonnes) Advertisement on constructions
5 10 20 30 50 70 100
3 5 10 15 20 30 50
1 2 5 5 10 15 25
1.4.1 1.4.2 1.5
30 50
20 30
10 10
1.5.1 1.5.2 1.5.3 1.6
1 2 3
1 1 2
0 0 1
1.6.1 1.6.2 1.6.3 1.6.4 1.7 2 2.1
2 2 3 8 10
1 1 2 4 5
0 0 1 2 1
2.1.1
2.1.2
2.2
326
installed on vehicles (panels, boards, light boxes and others) on one side: 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 up to 2 m2 up to 5 m2 between 5 and 10 m2 between 10 and 20 m2 between 20 and 40 m2 over 40 m2 3 15 35 50 60 80 2 10 25 25 45 40 1 5 10 10 20 25
The local representative bodies for the oblasts (cities of national status, the capital city), with respect to advertisements placed alongside public vehicle highways and in populated areas shall be entitled to double the charge depending on the location of the advertisement. Article 531. Calculation and Payment Procedure 1. The charge to be collected shall be determined on the basis of the rates of the charge and the actual length of time for which an advertisement is placed, as established in a permit, but shall be no less than the charge for one calendar month. The charge payable to the budget for one calendar month shall be paid on or before the 25th of the following month. On receipt of a permit, the payers of the charge shall file a document, either to the highway authority or local executive bodies, confirming payment of the charge to the budget for the first month in which advertisements are placed. The charge shall be paid to the budget at the location where an outdoor (visual) advertisement has been placed, as shown in a permit, except for vehicles for which the charge has been paid to the budget in their place of state registration. Charges paid shall not be refundable.
2.
3.
4.
5.
Chapter 79. State duty

1. State Duty Article 532. General Provisions State duty shall be an obligatory payment collected in return for having authorised state bodies or officials conclude legal acts and (or) issue documents. For the purposes of this chapter the issue of documents (copies, duplicates) shall be considered the equivalent of legal acts. Article 533. Payers of State Duty The payers of state duty shall be individuals and legal entities requesting that authorised state bodies and officials perform legal acts and (or) issue documents.
327
Article 534. Objects of Collection 1. State duty shall be collected for: 1) court claims, applications for special court proceedings, applications for (appeals against) special court proceedings, applications for court orders, applications for a duplicate writ of execution, applications to issue writs of execution for the decisions of mediation courts (courts of arbitration) and foreign courts, applications for duplicates of court acts, writs of execution and other documents; notary acts and copies (duplicates) of notarised documents; registering civil acts, and issuing certificates and additional certificates to citizens on the registration of civil acts and certificates relating to amendments, additions or the restoration of records of civil acts; processing documents required to obtain the right for permanent residence overseas, or for an invitation to the Republic of Kazakhstan for individuals from other countries, and for any amendments required to these documents; issuing a visa in the Republic of Kazakhstan to the passports or equivalent documents of foreign and stateless individuals for the right to depart from the Republic of Kazakhstan, or enter the Republic of Kazakhstan; processing documents for citizenship of the Republic of Kazakhstan, to restore citizenship of the Republic of Kazakhstan or terminate citizenship of the Republic of Kazakhstan; registering a place of residence; issuing and renewing a hunting permit; issuing permits to import and export rare and endangered animals and sturgeon, and also their parts and derivatives;
2) 3)
4)
5)
6)
7) 8) 9)
10) issuing documents confirming identity; 11) issuing permits to keep; keep and carry; transport and import weapons and related ammunition into or export from the Republic of Kazakhstan; 12) registering and re-registering each unit of civil, professional weapons belonging to individuals and legal entities (except for non-firearm hunting weapons, warning guns, mechanical spray guns, aerosols and other devices fitted with tear gas or abrasive substances, pneumatic weapons with dual energy of no more than 7.5 joules and calibre of up to 4.5mm inclusive); 13) the state body authorised by the Government of the Republic of Kazakhstan to apostil official documents executed in the Republic of Kazakhstan in accordance with international treaties ratified by the Republic of Kazakhstan; 14) issuing of driving licences, tractor and engine driver licenses, technical inspection certificates, state registration of motor vehicles, the state registration of vehicle number plates; 15) the authorised body for intellectual property to conclude legal acts stipulated by article 539 of this Code. 2. Fixed percentage rates of state duty shall be calculated on the basis of the monthly calculation index set by the law on the state budget for the relevant financial year, unless otherwise established by this Code.
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Article 535. State Duty in Courts 1. For court claims, applications for special court proceedings, applications for (appeals against) special court proceedings, applications for court orders, applications for a duplicate writ of execution, applications to issue writs of execution for the decisions of mediation courts (courts of arbitration) and foreign courts, applications for duplicates of court acts, writs of execution and other documents, state duty shall be charged at the following rates: 1) on court claims of a material nature: for individuals - 1% of the claim amount; for legal entities - 3% of the claim amount; 2) on appeals against the unlawful actions of state bodies and officials that infringe the rights of individuals - 30%; on appeals against the unlawful actions of state bodies and officials that infringe the rights of legal entities - 500%; on court claims contesting notifications on acts of tax audit:
3)
4)
for individual entrepreneurs and farms or farm holdings - 0.1% of the disputed amount of tax and other obligatory payments to the budget (including late payment interest) indicated in the notification; for legal entities - 1% of the disputed amount of tax and other obligatory payments to the budget (including late payment interest) indicated in the notification; 5) on court claims on the divorce - 30%. If property is divided upon the divorce, duty shall be determined on the basis of the amount of the claim in accordance with subpoint 1) of this article; 6) on court claims regarding the division of property upon the divorce due to individuals being duly declared as missing or legally incapable through mental illness or weak-mindedness, or to individuals imprisoned for more than three years - in accordance with subpoint 1) of this point; on court claims regarding the amendment or termination of a residential building rental agreement, an extension to a deadline for accepting inheritance or the release of property from arrest and other non-material court claims or not subject to assessment - 50%; on applications for special court proceedings, applications for (appeals against) special court proceedings - 50%; on petitions to appeal a decision of arbitration courts, petitions to annul arbitration decisions 50% of state duty due on a non-material court claim filed with a court in the Republic of Kazakhstan, and on material disputes of the amount of state duty due on filing a material court claim in the Republic of Kazakhstan and calculated based on the amount disputed by the claimant;
7)
8)
9)
10) on applications for court orders 50% of the rate of state duty referred to in subpoint 1) of this point; 11) on applications for a duplicate writ of execution, applications to issue writs of execution for the decisions of mediation courts (courts of arbitration) and foreign courts 500%; 12) on applications for duplicates of court acts, verdicts, rulings and other court rulings and copies of other case documents issued by courts at the request of the parties or other case participants - 10% for each document and, in addition, 3% for each prepared page; 13) on applications for legal entities to be declared bankrupt - 500%.
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2.
If court claims contain both material and non-material claims, state duty for material and nonmaterial court claims shall be collected simultaneously.
Article 536. Rates of State Duty for Notary Acts State duty shall be collected as follows for notary acts to: 1) certify agreements for the alienation of immovable property (land plots, residential houses, apartments, dachas, garages, structures and other immovable property) in an urban locality: if one of the parties is a legal entity - 1,000%; if the value does not exceed 30 times the monthly calculation index: to children, a spouse, parents, siblings and grandchildren - 100%; to other persons - 300%; where the value exceeds 30 times the monthly calculation index: to children, a spouse, parents, siblings and grandchildren - 500%; to other parties - 700%; if a transaction is concluded to purchase immovable property using funds received as a home mortgage loan 200%; 2) certify agreements on the disposal of immovable property (land plots, residential houses, apartments, dachas, garages, structures and other immovable property) in a rural locality: if one of the parties is a legal entity - 100%; to children, a spouse, parents, siblings and grandchildren - 50%; to other parties - 70%; 3) certify agreements on the disposal of motor vehicles: if one of the parties is a legal entity - 700%; to children, a spouse, parents, siblings and grandchildren - 200%; to other persons - 500%; 4) certify rental and loan agreements (except for home mortgage loan agreements); deposit, lease and contractual agreements; marriage contracts, the division of jointly owned property, the division of inherited property, alimony agreements and foundation agreements - 500%; certify home mortgage loan agreements 200%; certify wills - 100%; issue certificates of inheritance rights - 100% for each certificate issued; issue a certificate on ownership rights to a portion of the common property of spouses and other parties in possession of property on the basis of joint ownership - 100%; certify powers of advocate for the right to use and dispose of property - 50%;
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10) certify powers of advocate for the right to use and operate motor vehicles without the right to sale - 100%; 330
11) certify powers of advocate to sell, gift and exchange motor vehicles - 200%; 12) certify other powers of advocate: for individuals - 10%; for legal entities - 50%; 13) adopt measures to protect inherited property - 100%; 14) conclude a sea protest - 50%; 15) witness the authenticity of copies of documents and extracts from documents (per page): for individuals - 5%; for legal entities - 10%; 16) witness the authenticity of a signature on documents and the accuracy of the translation of documents from one language to another (for each document): for individuals - 3%; for legal entities - 10%; 17) transfer individuals and legal entities applications to other individuals and legal entities - 20%; 18) issue notarised copies of documents - 20%; 19) issue duplicates - 100%; 20) witness the authenticity of signatures when opening bank accounts (for each document): for individuals - 10%; for legal entities - 50%; 21) certify real estate security agreements, rights to claims and mortgage certificates for home mortgage loans 200%; certify other collateral security agreements 700%; 22) enter a protest of a bill and certify a failure to honour a cheque - 50%; 23) store documents and securities - 10% for each month; 24) certify warranty and guarantee agreements - 50%; 25) perform other notary acts envisaged by other legislative acts of the Republic of Kazakhstan 20%. Article 537. Rates of State Duty for the Registration of Civil Acts 1. State duty shall be collected at the following rates for registering civil acts, issuing additional certificates of registration of civil acts and certificates following amendments, additions, corrections and the restoration of birth, marriage, divorce and death records: 1) 2) for registering a marriage - 100%; for registering a divorce: by mutual consent of spouses without minors - 200%;
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on the basis of a court decision - 150% (from one or both spouses); on the basis of a court decision with individuals recognised, in accordance with the established procedure, as missing or legally incapable through mental illness or weak-mindedness, or to individuals sentenced to imprisonment for a term of more than three years - 10%; 3) for registering a change of surname, name or patronymic, nationality or gender - 200%; for each document of a spouse or child issued on this basis - 50%; 4) for issuing certificates due to a amendment, addition, correction or restoration of a record of acts of birth, marriage, divorce or death 50%; for issuing duplicate registration certificates of civil acts - 100%; for registering adoption by foreign nationals - 200%; for issuing certificates to citizens of the Republic of Kazakhstan on the registration of civil acts 30%; for requesting registration certificates of civil acts from CIS countries 50%; for requesting registration certificates of civil acts from foreign countries 100%.
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Article 538. Rates of State Duty for documenting Departure from the Republic of Kazakhstan, the Acquisition of Citizenship of the Republic of Kazakhstan, the Restoration of Citizenship of the Republic of Kazakhstan or the Termination of Citizenship of the Republic of Kazakhstan State duty shall be collected at the following rates for actions related to the acquisition of citizenship of the Republic of Kazakhstan, the restoration of citizenship of the Republic of Kazakhstan or the termination of citizenship of the Republic of Kazakhstan and acts related to entry into or departure from the Republic of Kazakhstan: 1) for issuing or extending a visa for foreign nationals and stateless individuals to: depart the Republic of Kazakhstan - 50%; enter the Republic of Kazakhstan and depart the Republic of Kazakhstan - 100%; 2) 3) for issuing multi-entry and exit visas to foreign nationals and stateless individuals - 200%; for amending documents certifying the right to exit the Republic of Kazakhstan and enter the Republic of Kazakhstan for citizens of the Republic of Kazakhstan, and also for foreign nationals and stateless individuals permanently residing in the Republic of Kazakhstan - 100%; for issuing invitation documents from abroad to citizens of the Republic of Kazakhstan, foreign nationals and stateless individuals - 50% for each individual invited; for registering documents on the acquisition of citizenship of the Republic of Kazakhstan, the restoration of citizenship of the Republic of Kazakhstan or the termination of citizenship of the Republic of Kazakhstan - 100%; for issuing replacement invitation documents to the Republic of Kazakhstan for those that have been lost or damaged at the rates specified in subpoints 1), 2) and 4) of this article.
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Article 539. Rates of State Duty to commission Legal Acts from the Authorised State Body for Intellectual Property The following state duty shall be collected to commission legal acts from the authorised state body for intellectual property:
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1) 2) 3)
for issuing an innovation patent, patent or certificate 100%; for issuing a certificate for a common trademark 100%; for registering assignment, pledge, licensing and sublicensing agreements related to the use of industrial property 150%; for certifying patent advocates 1,500%; for issuing a certificate of registration for a patent advocate 100%.
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Article 540. Rates of State Duty for performing Other Acts State duty for performing other acts shall be collected at the following rates: 1) 2) 3) for registering a place of residence - 10%; for issuing and renewing hunting permits annually - 10%; for issuing permits to import and export rare and endangered animals and sturgeon, as well as their parts and derivatives - 200%; for issuing: passports to citizens of the Republic of Kazakhstan, identity cards to stateless individuals - 400%; personal identity cards to citizens of the Republic of Kazakhstan, residence permits to foreign nationals in the Republic of Kazakhstan, temporary identity cards - 20%; 5) for issuing: to legal entities: a permit to import civil and professional weapons, and ammunition for them 200%; a permit to export civil and professional weapons, and ammunition for them 200%; a permit to store civil and professional weapons, and ammunition for them 100%; a permit to store and carry civil and professional weapons, and ammunition for them 100%; a permit to transport civil and professional weapons, and ammunition for them 200%; a permit for the commission sale of civil and professional weapons, and ammunition for them 100%; to individuals: a permit to import civil weapons and ammunition for them 50%; a permit to export civil weapons and ammunition for them 50%; a permit to purchase civil weapons and ammunition for them 50%; a permit to store civil weapons and ammunition for them 50%; a permit to store and carry civil weapons and ammunition for them 50%; a permit to transport civil weapons and ammunition for them 10%; a permit for the commission sale of civil weapons and ammunition for them 50%;
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for registering and re-registering each civil or professional weapon belonging to individuals and legal entities (except for non-firearm hunting weapons, signal, mechanical spray guns, aerosols and other devices equipped with tear gas or abrasive substances, pneumatic weapons with dual energy of no more than 7.5 joules and calibre of up to 4.5 mm inclusive) - 10%; for amending personal identification documents - 10%; for the state body authorised by the Government of the Republic of Kazakhstan to apostil official documents concluded in the Republic of Kazakhstan in accordance with international treaties ratified by the Republic of Kazakhstan 50% for each document; for issuing: driving licences 125%; certificates of the state registration of means of transport 125%; state technical inspection certificates for mechanical vehicles or trailers 50%; the state registration of number plates for automobiles 280%; the state registration of number plates for motor transport or car trailers 140%; the state registration of number plates (transit) for the transportation of a means of transport 35%;
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10) for issuing: a license to tractor drivers 50%; a state registration number plate for tractors, self-propelled chassis and mechanisms mounted on them, trailers (including trailers with assembled special equipment), self-propelled agricultural, reclamative and road building machines and mechanisms 100%; a technical passport for the state registration of tractors mounted on self-propelled chassis and mechanisms, trailers (including trailers with assembled special equipment), self-propelled agricultural, reclamative and road building machines and mechanisms 50%. Article 541. Exemptions from the Payment of State Duty in Courts The following shall be exempt from paying state duty in courts: 1) plaintiffs in respect of claims to recover amounts paid as employment compensation and other claims associated with employment activities; plaintiffs authors, executives and organisations managing their material rights on a collective basis, for claims arising from copyright and allied rights; plaintiffs authors of objects of industrial property, for claims arising from a right to an invention, useful models and industrial samples; plaintiffs in respect of claims to recover alimony; plaintiffs in respect of claims to compensate for injury or damage to health, or the death of an individual with dependents; plaintiffs in respect of claims to compensate for damage caused by a crime; individuals and legal entities, except for persons unconnected with the given case to issue documents to them in connection with criminal and alimony proceedings;
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plaintiffs in respect of claims to recover funds for the state in compensation for damage caused to it by an infringement of environmental conservation legislation of the Republic of Kazakhstan; vocational schools and vocational lyceum training skilled employees and highly-skilled personnel in respect of claims to recover expenses incurred by the state to maintain students who have either left educational institutions of their own accord or have been expelled from them;
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10) individuals and legal entities filing court petitions in those cases stipulated by legislation to protect the rights and legally protected interests of other persons or of the state; 11) an advocate (agent) who has taken court action with a claim to refund budget loans, and also state loans and those guaranteed by the state, in accordance with budget legislation of the Republic of Kazakhstan; 12) plaintiffs veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and also the income of one of the parents of an individual handicapped since childhood for all cases and documents; 13) plaintiffs (oralmans) - in respect of all cases and documents associated with the acquisition of citizenship of the Republic of Kazakhstan; 14) individuals and legal entities for filing applications with a court to: reverse a court ruling on the termination of proceedings or the dismissal of a petition without consideration; defer or postpone the fulfilment of a decision; alter the method and procedure for executing a decision; secure claims or replace one type of security with another; review court decisions, rulings or resolutions on the basis of newly revealed circumstances; remiss or reduce fines imposed by court rulings; reverse the execution of a court decision to restore missed deadlines; reverse a default judgement; and also appeals: against the actions of court bailiffs; private appeals against court rulings to reject or reduce fines; other private appeals against court rulings; appeals against rulings on administrative violations; on the reversal of a default judgement; 15) public prosecution bodies in respect of all claims; 16) state institutions when filing claims and appealing court verdicts, except when protecting the interests of third parties;
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17) public organisations of handicapped individuals and (or) organisations created by them that employ no less than 35% individuals suffering from a loss of hearing, speech and vision when filing court claims in respect of issues in their interest; 18) insurance holders and insurers in respect of court claims arising from compulsory insurance agreements; 19) plaintiffs and defendants in respect of disputes associated with compensation for harm caused to a citizen by unlawful conviction, unlawful detention as a measure of prevention or the unlawful imposition of an administrative sanction in the form of arrest or correctional labour; 20) the National Bank of the Republic of Kazakhstan, its branches and representative offices when filing court claims in respect of issues within their competence; 21) the authorised state body for the regulation and control of the financial market and financial organisations when filing court claims on issues within its competence; 22) liquidation commissions of financial organisations undergoing forced liquidation in respect of court claims and applications filed in the interests of liquidation proceedings; 23) banks authorised in accordance with a legislative act of the Republic of Kazakhstan to implement state investment policy when court claims have been filed to; recover a debt on loans issued on a refund basis at the expense of budget funds; recover property; recognise debtors bankruptcy in connection with their failure to fulfil external state loan obligations and those guaranteed by the state, and also loans issued at the expense of budget funds; 24) bankruptcy and rehabilitation managers after court claims have been filed in the interests of bankruptcy and rehabilitation proceedings within the framework of their authorisation, as stipulated by legislation of the Republic of Kazakhstan on bankruptcy. Article 542. Exemption from State Duty for Notary Acts concluded The following shall be exempt from state duty for notary acts concluded: 1) 2) individuals for certifying their wills, agreements gifting property in favour of the state; state institutions for issuing certificates (duplicates) to them on the states right to inheritance and for any documents required to receive these certificates (duplicates); individuals for issuing certificates to them on the right to inherit: the property of individuals who have died in defence of the Republic of Kazakhstan, during their performance of other state or public duties, or in the performance of their duty as citizens of the Republic of Kazakhstan to save a human life, protect state property, or preserve law and order; residential houses (apartments) or shares in housing construction co-operatives where the heir resided with the testator for no less than three years prior to the death of the testator and continues to reside in the house (apartment) following his death; insurance payments made under insurance agreements, state bonds, employment compensation, copyright or royalties and other remuneration for discoveries, inventions or industrial samples; the property of rehabilitated citizens; 4) veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 336
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June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; disabled individuals and the income of one of the parents of an individual handicapped since childhood for all notary acts; 5) repatriates (oralmans) for all notary acts associated with the acquisition of citizenship of the Republic of Kazakhstan; the National Bank of the Republic of Kazakhstan, its branches and representative offices when requesting notary acts on matters within their area of competence; the authorised state body for the regulation and control of the financial market and financial organisations when requesting notary acts relating to issues within its competence; women with many children who have been awarded the titles Heroine Mother, Altyn alkha or kumis alkha - in respect of all notary acts; individuals suffering from chronic mental illness and who are under guardianship in accordance with the procedure established by legislation of the Republic of Kazakhstan - for the receipt of certificates on their rights to inheritance;
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10) the Voluntary Society of Handicapped Individuals of Kazakhstan (VSHIK), the Kazakhstan Society for the Deaf (KSD), the Kazakhstan Society for the Blind (KSB) and also manufacturing enterprises linked with those societies - in respect of all notary acts. Article 543. Exemptions from State Duty when registering Civil Acts The following shall be exempt from state duty for the registration of civil acts: 1) veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and also one of the parents of an individual handicapped since childhood, guardians (custodians), state organisations - for registering and issuing additional birth certificates; individuals - for issuing certificates following amendments, additions and corrections to records of birth or death, on the establishment of paternity, adoption due to errors committed during the registration of civil acts; individuals - for issuing additional or replacement death certificates for relatives; individuals - for issuing additional birth certificates in connection with adoption and the establishment of paternity.
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Article 544. Exemptions from State Duty for the Restoration and Acquisition of Citizenship of the Republic of Kazakhstan 1. The following shall be exempt from state duty: 1) individuals forced to leave the Republic of Kazakhstan during periods of mass repression, forced collectivisation, and as a result of inhumane political acts, and their descendants when expressing a desire to restore their citizenship of the Republic of Kazakhstan; oralmans when acquiring citizenship of the Republic of Kazakhstan.
2) 2.
The above exemption from state duty shall be granted only once.
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Article 545. Exemption from State Duty when the Authorised State Body for Intellectual Property executes Legal Acts The following shall be exempt from state duty when the authorised body for intellectual property executes legal acts: 1) elderly and handicapped individuals residing in homes and boarding homes for the elderly and handicapped; students at boarding schools, vocational schools and professional vocational schools fully funded by the state, and those students living in hostels; repatriates (oralmans) before acquisition of citizenship of the Republic of Kazakhstan; heroes of the Soviet Union, heroes of socialist labour, individuals who have been awarded three levels of the order of honour and labour glory - altyn kyran, khalyk kaharmany and otan -, mothers with many children, those awarded the title of heroine mother, holders of the titles altyn alkha and kumis alkha; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and one of the parents of an individual handicapped since childhood, victims of the Chernobyl disaster.
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Article 546. Exemption from State Duty for the Performance of Other Acts The following shall be exempt from state duty: 1) for registering a place of residence: elderly and handicapped individuals residing in homes for the elderly and handicapped; students of boarding or vocational schools or colleges fully maintained by the state, and those residing in hostels; repatriates (oralmans) before the acquisition of citizenship of the Republic of Kazakhstan; heroes of the Soviet Union, heroes of socialist labour, individuals who have been awarded three levels of the order of honour and labour glory - altyn kyran, khalyk kaharmany and otan -, mothers with many children, those awarded the title of heroine mother, holders of the titles altyn alkha and kumis alkha; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; disabled individuals and also one of the parents of an individual handicapped since childhood; victims of the Chernobyl disaster. 2) 3) 4) for issuing or renewing hunting permits - hunting experts, professional and authorised huntsmen; when lodging a civil claim in a criminal case; for placing an apostil stamp on documents received for stamping through the diplomatic representations and consular institutions of the Republic of Kazakhstan;
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for issuing duplicate certificates on the registration of civil acts to citizens applying through diplomatic representatives and consular institutions of the Republic of Kazakhstan; for issuing passports and personal identity cards to citizens of the Republic of Kazakhstan, and also residence permits for foreign nationals in the Republic of Kazakhstan, and identification cards to stateless individuals: heroes of the Soviet Union and heroes of socialist labour; individuals who have been awarded three levels of the order of honour and labour glory - altyn kyran, khalyk kaharmany and otan; mothers with many children who have received the title of heroine mother, holders of the titles altyn alkha and kumis alkha; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and also one of the parents of an individual handicapped since childhood; elderly citizens residing in residential homes for the elderly and handicapped, orphans and children who are without the guardianship of parents and who are under the full guardianship of the state, and who reside in orphanages and boarding houses; victims of the Chernobyl disaster;
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for issuing state registration number plates for vehicles and trailers, on motorcycles: heroes of the Soviet Union and heroes of socialist labour; individuals who have been awarded three levels of the order of honour and labour glory - altyn kyran, khalyk kaharmany and otan; veterans of the Great Patriotic War and individuals of equivalent status; individuals awarded orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; individuals who worked (served) for at least 6 months between 22 June 1941 and 9 May 1945 and who have not received orders and medals of the former USSR for dedicated labour and impeccable rearguard military service during the Great Patriotic War; handicapped individuals and one of the parents of an individual handicapped since childhood; victims of the Chernobyl disaster.
Article 547. Procedure for paying State Duty 1. State duty shall be paid in cash by transfer through a bank or organisations performing certain banking operations. State duty shall be paid: 1) for a court to consider a case prior to filing the relevant application (appeal) or application for court orders and upon the courts issue of document copies; for notary acts and also to issue copies of documents and duplicates upon the registration of a completed notary action; for the state registration of civil acts and for corrections and amendments to records of civil acts after, and to issue certificates and additional statements when they are issued; for the state registration of a divorce by mutual consent of spouses without minors upon registration of the act;
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5) 6)
for registering the place of residence of citizens prior to the relevant documents being issued; for issuing passports and personal identity cards of citizens of the Republic of Kazakhstan, identity cards for stateless individuals, residence permits of foreign nationals in the Republic of Kazakhstan prior to the relevant documents being issued; for issuing driving licences, tractor driver licenses, certificates of state registration of motor vehicles and trailers, state vehicle and trailer technical inspection certificates, the state registration of number plates prior to issuing the corresponding documents and state registration number plates; for issuing a hunting permit prior to the relevant documents being issued; for issuing permits to import and export rare and endangered animals and sturgeon, and also their parts and derivatives prior to the issue of the relevant documents;
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8) 9)
10) for issuing permits to store, or store and carry, transport, import into the Republic of Kazakhstan and export from the Republic of Kazakhstan weapons and ammunition for them prior to the relevant documents being issued; 11 for registering and re-registering all civil or professional weapons belonging to individuals and legal entities (except for non-firearm hunting weapons, signal, mechanical spray guns, aerosols and other devices equipped with tear gas or abrasive substances, pneumatic weapons with dual energy of no more than 7.5 joules and calibre of up to 4.5 mm inclusive) before the relevant documents are issued;
12) for matters associated with the acquisition of citizenship of the Republic of Kazakhstan or the termination of citizenship of the Republic of Kazakhstan, as well as departure from and entry into the Republic of Kazakhstan prior to the relevant documents being received; 13) for apostil certification of official documents by the state body authorised by the Government of the Republic of Kazakhstan, which have been issued by state bodies or notaries in the Republic of Kazakhstan prior to apostil certification; 14) for legal acts executed by the authorised body for intellectual property to issue innovation patents, patents, certification and certificates; register agreements and attestation, and register patent agents - prior to the relevant documents being issued. 3. State duty shall be paid at the place where legal acts are carried out and (or) where documents are issued by state authorised bodies or officials. State duty shall be paid to the budget by transfer through a bank or organisation performing certain banking operations, or in cash using pre-numbered forms drawn up by the established authorised body. The authorised state bodies shall transfer state duty received in cash to banks or organisations performing certain types of banking transactions on a daily basis on or before the operating day following the day the cash was received, for subsequent transfer to the budget. If daily cash receipts amount to less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, cash shall be transferred once every three operating days from the day on which it was received.
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Article 548. Refund of State Duty 1. State duty shall be refundable, either in part or in full, where: 1) state duty have been paid in excess of the amount required under this Code, but not where a plaintiff reduces a claim; an application (appeal) has been returned or rejected, or where notaries or authorised persons refuse to perform notary acts;
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3)
case proceedings have been terminated or a case has been dismissed, but not where a case is to be tried in court or where the plaintiff has failed to observe the procedure established for the category of case in question, for the preliminary settlement of a dispute, or where an action has been filed by an individual deemed to be legally incapable; persons, having paid state duty, refuse to perform a legal act or receive documents prior to making an application to the body performing that legal act; in other cases stipulated by legislative acts of the Republic of Kazakhstan.
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The tax bodies shall consider a tax application for a refund of state duty after receiving a document from the taxpayer of the relevant authority, which constitutes the basis for a refund of state duty, and also a document confirming the payment of state duty, and where those documents have been presented to the body of the tax service within three years from the date on which state duty is paid to the budget. The bodies of the tax service shall refund state duty paid to the budget to a taxpayers bank account based on a tax application and payment document confirming payment of state duty, and also a document from the relevant body that is considered the basis for its refund. The body of the tax service shall refund state duty to a payer in whose favour a court decision was made to refund state duty from a state institution that was a party to the case, based on a tax application from the taxpayer or state institution, except for those cases when the state institution is protecting the interests of third parties, together with a payment document on the payment of state duty to the budget and court decision. The tax bodies in the place of payment shall refund state duty paid to the budget from the budget classification code that received the state duty. After refunding state duty, the body of the tax service shall send notification on execution of a court decision to a taxpayer and (or) state institution. Documents for a refund of state duty should be filed with the tax service within three years from the day state duty is paid to the budget.
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2. Consular Fees Article 549. General Provisions A consular fee is a type of payment collected by diplomatic representations and consular institutions of the Republic of Kazakhstan from foreign nationals, stateless individuals and foreign non-resident legal entities, individuals and legal entities of the Republic of Kazakhstan for consular acts and issuing documents that have legal value. Article 550. Payers of the Consular Fee The payers of the consular fee shall be foreign nationals, stateless individuals and foreign non-resident legal entities; citizens and legal entities of the Republic of Kazakhstan in whose interests consular acts are performed or documents with legal value are issued. Article 551. Objects of Collection Consular fees shall be collected for the following consular acts: 1) 2) 3) handling passports of citizens of the Republic of Kazakhstan; issuing visas of the Republic of Kazakhstan; issuing laissez-passers to the Republic of Kazakhstan;
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handling petitions from citizens of the Republic of Kazakhstan regarding periods of stay abroad; consular registration of citizens of the Republic of Kazakhstan with a foreign permanent place of residence, as well as children who are residents of the Republic of Kazakhstan who have been fostered by foreign nationals; handling documents regarding citizenship of the Republic of Kazakhstan; registering civil acts; requesting documents; legalising documents, as well as receiving and forwarding documents for apostil;
6) 7) 8) 9)
10) carrying out notary acts; 11) storing wills, packages of documents (except for wills), cash, securities and other valuables (except for inherited valuables) with a consular institution; 12) selling goods or other property at a public auction; 13) accepting property or monetary amounts for deposit for up to six months, for transfer as appropriate; 14) sending documents by diplomatic mail to legal entities; 15) issuing certificates for the right to sail under the state flag of the Republic of Kazakhstan if a vessel is purchased abroad; compiling and certifying declarations and other documents in relation to courts of the Republic of Kazakhstan as stipulated by legislation of the Republic of Kazakhstan or international agreements to which the Republic of Kazakhstan is a party; 16) issuing other documents (certificates) that have legal significance. Article 552. Rates of the Consular Fee 1. The base minimum and maximum rates of consular fees shall be established by the Government of the Republic of Kazakhstan. The Ministry of Foreign Affairs of the Republic of Kazakhstan shall have the right, within the limits of the base rates of consular fees, to establish specific rates for foreign institutions.
2.
Article 553. Exemption from Consular Fees A consular fee shall not be collected: 1) 2) in the instances stipulated by articles 542-546 of this Code; from individuals and legal entities of countries that have an agreement with the Republic of Kazakhstan on the mutual waiver of consular fees; when, upon the request of authorities and individual citizens of countries with which the Republic of Kazakhstan has concluded agreements on legal assistance, documents are requested pertaining to family, civil and criminal cases, on alimony, on state benefits and pensions and on adoption; for compiling and printing notes sent to foreign diplomatic representations and consular institutions on issuing visas to: members of official delegations of the Republic of Kazakhstan and individuals accompanying them; deputies of the Parliament of the Republic of Kazakhstan;
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civil servants of the Republic of Kazakhstan holders of diplomatic or service passports of the Republic of Kazakhstan; family members of personnel working in foreign institutions of the Republic of Kazakhstan; close relatives of personnel working in foreign institutions of the Republic of Kazakhstan and individuals accompanying them travelling abroad due to the illness or death of an employee of a foreign institution of the Republic of Kazakhstan; 5) for working on requests from citizens and legal entities of the Republic of Kazakhstan, as well as foreign nationals and stateless individuals, foreign legal entities to issue visas and send instructions to foreign institutions of the Republic of Kazakhstan to issue visas (visa support): for foreign official delegations and accompanying individuals travelling to the Republic of Kazakhstan; foreign nationals travelling to the Republic of Kazakhstan to participate in national and international events (symposiums, conferences and other political, cultural and scientific and sporting events); foreign nationals travelling to the Republic of Kazakhstan at the invitation of the administration of the President of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, Parliament of the Republic of Kazakhstan, Constitutional Court of the Republic of Kazakhstan, Supreme Court of the Republic of Kazakhstan, Central Election Commission of the Republic of Kazakhstan, office of the Prime Minister of the Republic of Kazakhstan, state bodies, akimats for the oblasts and cities of Astana and Almaty; foreign nationals travelling to the Republic of Kazakhstan with humanitarian aid agreed with the interested state bodies of the Republic of Kazakhstan; employees of international organisations travelling to the Republic of Kazakhstan for business purposes; foreign nationals travelling to the Republic of Kazakhstan at the invitation of diplomatic representations and consular institutions, and international organisations accredited in the Republic of Kazakhstan, based on the principle of reciprocity; investors visas; 6) for issuing visas to: members of foreign official delegations and accompanying individuals travelling to the Republic of Kazakhstan; foreign nationals travelling to the Republic of Kazakhstan to participate in national and international events (symposiums, conferences and other political, cultural and scientific and sporting events); foreign nationals travelling to the Republic of Kazakhstan at the invitation of the administration of the President of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, Parliament of the Republic of Kazakhstan, Constitutional Court of the Republic of Kazakhstan, Supreme Court of the Republic of Kazakhstan, Central Election Commission of the Republic of Kazakhstan, office of the Prime Minister of the Republic of Kazakhstan, state bodies, akimats for the oblasts and cities of Astana and Almaty; foreign nationals travelling to the Republic of Kazakhstan with humanitarian aid agreed with the interested state bodies of the Republic of Kazakhstan; employees of international organisations travelling to the Republic of Kazakhstan for business purposes; foreign nationals travelling to the Republic of Kazakhstan at the invitation of diplomatic representations and consular institutions, and international organisations accredited in the Republic of Kazakhstan, based on the principle of reciprocity;
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foreign nationals holders of diplomatic and service passports travelling to the Republic of Kazakhstan for business purposes; children up to 16 years of age; people of Kazakh nationality who are not citizens of the Republic of Kazakhstan; former citizens of the Republic of Kazakhstan permanently residing abroad and travelling to the Republic of Kazakhstan for the funeral of close relatives; investors visas; business visas; 7) for issuing repeat visas to replace initial visas that contain an error made by employees of consular institutions of the Republic of Kazakhstan and the Ministry of Foreign Affairs of the Republic of Kazakhstan; for issuing laissez-passer documents to the Republic of Kazakhstan and certificates to citizens of the Republic of Kazakhstan who have no documents or funds after having lost them, suffering a natural disaster or other force-majeure circumstances; for issuing certificates to send coffins or urns to the Republic of Kazakhstan with the ashes of citizens of the Republic of Kazakhstan who died abroad;
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10) for requesting documents according to the petitions of foreign diplomatic representations and consular institutions based on the principle of reciprocity; 11) for legalising documents of citizens of the Republic of Kazakhstan requested through foreign institutions of the Republic of Kazakhstan; 12) for legalising documents according to the petitions of foreign diplomatic representations and consular institutions, and also international organisations based on the principle of reciprocity; 13) for the consular registration of citizens of the Republic of Kazakhstan who are studying abroad, and for issuing them with certificates with legal value. Article 554. Procedure for paying Consular Fees 1. 2. A consular fee shall be paid prior to consular acts being performed. Diplomatic representations and consular institutions of the Republic of Kazakhstan shall perform consular acts once the payer has paid the consular fee. Payment of consular fees in the Republic of Kazakhstan where rates have been set in US dollars shall be made in tenge at the official exchange rate set by the National Bank of the Republic of Kazakhstan at the moment the fee is paid. Consular fees shall be paid: 1) in the Republic of Kazakhstan - by transfer through banks or organisations performing certain types of banking transactions to the budget at the location where consular acts are carried out, or in cash at consular institutions using pre-numbered forms drawn up by the authorised body. The authorised state body shall transfer consular fees received in cash to banks or organisations performing certain types of banking transactions on a daily basis on or before the operating day following the day the cash was received, for subsequent transfer to the budget. If daily cash receipts amount to less than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year, cash shall be transferred once every three operating days from the day on which it was received
3.
4.
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2)
outside the Republic of Kazakhstan - by transfer through a bank or an organisation performing certain banking operations to the diplomatic representation or consular institutions bank account without the right to economic use, or in cash at consular institutions using prenumbered forms in the format drawn up by the authorised body.
5.
Consular fees shall be paid in the currency of the country in which consular acts were concluded, or in any other freely convertible currency. A diplomatic representation or consular institution shall pay consular fees accepted abroad into a foreign bank in the host country of the diplomatic representation or consular institution within 10 operating days from the day it was received for transfer to a foreign bank account. Consular fees received in a foreign bank account in the currency of the host country of a diplomatic representation or consular institution shall be converted into USD by the foreign bank at the request of the diplomatic representation or consular institution. The manager of a foreign bank account shall be a manager of a diplomatic representation or consular institution with the right of first signature. A diplomatic representation or consular institution shall send consular fees received in a foreign bank account to the currency account of the Ministry of Foreign Affairs of the Republic of Kazakhstan every month (on or before the 10th of the month following the reporting month) for further credit to budget revenue. Monthly receipts from consular fees to a diplomatic representation or consular institution amounting to less than 1,000 USD shall be transferred quarterly on or before the 10th of the month following the reporting month. The Ministry of Foreign Affairs of the Republic of Kazakhstan shall transfer consular fees transferred by a diplomatic representation or consular institution to state budget revenue within three working days from the day it receives statements from the National bank of the Republic of Kazakhstan referring to correspondent accounts in foreign currency and electronic payment documents.
6.
7.
Consular fees paid shall not be refundable.
3. Tax administration
Section 20. Tax control and other forms of tax administration Chapter 80. Main provisions
Article 555. Tax Administration Tax administration shall involve the bodies of the tax service performing tax control measures to ensure overdue tax obligations are fulfilled and overdue taxes are collected, and also providing state services to taxpayers (tax agents) and other authorised state bodies in accordance with legislation of the Republic of Kazakhstan. Article 556. Tax Control 1. Tax control shall mean the bodies of the tax service monitoring compliance with tax legislation of the Republic of Kazakhstan, other legislation of the Republic of Kazakhstan that is the responsibility of the bodies of the tax service. Tax control shall be exercised by: 1) registering taxpayers with the tax bodies; 345
2.
2) 3) 4)
accepting tax forms; conducting cameral reviews; recording the fulfilment of a tax obligation to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions; carrying out tax investigations; monitoring major taxpayers; conducting tax audits; monitoring compliance with the procedure for using cash registers; monitoring excisable goods;
5) 6) 7) 8) 9)
10) monitoring transfer pricing; 11) monitoring the procedure for recording, storing, assessing, using and realising property appropriated (to be appropriated) by the state; 12) monitoring the activities of authorised state and local executive bodies with respect to performing functions to execute tax legislation of the Republic of Kazakhstan. 3. The customs bodies shall exercise tax control within the limits of their competence, ensure the fulfilment of overdue tax obligations and measures for the forced recovery of taxes due on goods crossing the customs border of the Republic of Kazakhstan, in accordance with this Code and customs legislation of the Republic of Kazakhstan.
Article 557. Tax Secret 1. A tax secret shall comprise any information received by a body of the tax service on a taxpayer (tax agent), except for information on: 1) taxes and other obligatory payments to the budget made by a taxpayer (tax agent) to the budget, except for those made by individuals; a refund from the budget to a taxpayer of offset value added tax that exceeded the amount accrued; a taxpayers (tax agents) overdue taxes; inactive taxpayers and taxpayers who have been recognised as fictitious companies on the basis of a valid court verdict or resolution; a taxpayers application to conduct a documentary audit in connection with liquidation (closing of business); taxes and other obligatory payments to the budget accrued to a taxpayer (tax agent), except to an individual, and sanctions applied to a taxpayer (tax agent) who has violated tax legislation of the Republic of Kazakhstan; the existence (absence) of registration as a non-resident taxpayer operating through a permanent establishment, branch, representative office or without creating a permanent establishment in accordance with article 197 of this Code; on the following registration data of taxpayers (tax agents): identification number;
2)
3) 4)
5)
6)
7)
8)
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the surname, name and patronymic (if applicable) of an individual or manager of a legal entity; the name of an individual entrepreneur or legal entity; the date of a taxpayers (tax agents) record of registration, de-registration, the reason for deregistration; the date operations are suspended and re-started; a taxpayers residency. 2. The bodies of the tax service may not divulge information on a taxpayer (tax agent) considered a tax secret without the written permission of the taxpayer (tax agent), unless otherwise established by this article. The bodies of the tax service shall divulge data on a taxpayer (tax agent) considered a tax secret without the written permission of the taxpayer (tax agent) in the following cases to: 1) law enforcement authorities within their competence established by legislative acts of the Republic of Kazakhstan, with respect to enquiries on the fulfilment of tax obligations by persons that have committed tax violations and crimes, in accordance with the procedure established by this Code, for the purposes of legal prosecution; a court during the consideration of cases to identify a taxpayers tax obligation, a tax agents duty to calculate, withhold and transfer taxes in accordance with the procedure established by this Code, or liability for tax violations and crimes; court bailiffs within their competence established by legislative acts of the Republic of Kazakhstan, to execute court orders with court sanctions, and with respect to court orders issued on the basis of valid court acts without court sanctions. The procedure for providing this data shall be established by the authorised body together with the authorised state body for the execution of court orders; 4) the central authorised body for state planning; The central authorised body for state planning shall approve a list of officials with access to information considered a tax secret; 5) the authorised state body for financial monitoring; The authorised state body for financial monitoring shall approve a list of officials with access to information considered a tax secret; 6) 7) an individual engaged as a specialist to conduct a tax audit; the tax or law enforcement authorities of other countries, international organisations in accordance with international treaties (agreements) on mutual cooperation between tax or law enforcement authorities where one of the parties is the Republic of Kazakhstan, and also treaties concluded by the Republic of Kazakhstan and international organisations. the authorised state body for environmental protection with respect to data contained in tax reporting dealing with the charge for environmental emissions.
3.
2)
3)
8)
4.
A tax secret shall not be divulged by the bodies of the tax service, except in those cases established in this article, or by officials of other state bodies who have received data on a taxpayer (tax agent) from the bodies of the tax services in accordance with the procedure established by this article. Officials of the bodies of the tax service and officials of other state bodies that have received data from the bodies of the tax service on a taxpayer (tax agent) that is considered a tax secret shall not be entitled distribute it while working for the bodies in question and after their resignation. 347
5.
A tax secret may not be divulged by specialists engaged to conduct a tax audit, both while conducting the audit and after it has been completed. 6. The loss of documents containing data that is considered a tax secret, or the divulgence of this type of data shall result in liability as stipulated by legislative acts of the Republic of Kazakhstan.
Article 558. Tax Investigation 1. Tax investigation shall be a measure taken by bodies of the tax service to confirm whether a taxpayer exists at or is absent from a specific location listed in registration data, and also to serve an act of tax audit in the instance referred to in point 2 of article 637 of this Code. Witnesses may be engaged in accordance with the procedure established by this Code to participate in a tax investigation. 2. A tax investigation shall be conducted during working hours at the taxpayers location referred to in registration data. An act of tax investigation should be drawn up upon completion of a tax investigation to show: the place, date and time of compilation; the position, surname, name and patronymic (if applicable) of the official of the body of the tax service who compiled the act; the name of the body of the tax service; the surname, name and patronymic (if applicable); the name and number of an identity document; the address of a witnesss place of residence; the surname, name and patronymic (if applicable) and (or) name of a taxpayer; its identification number; information on the results of the tax investigation. 4. If a tax investigation discovers a taxpayers absence from the location listed in registration data, the body of the tax service shall send notification to the taxpayer acknowledging the location (absence) of the taxpayer. The provision of point 4 of this article shall not apply to a tax investigation conducted: 1) 2) to serve an act of tax audit; on the basis of notification sent by the body of the tax service which has been returned by a mail or other communication organisation due to a taxpayers absence from its location.
3.
5.
6.
Within 20 working days of a body of the tax service sending the notification referred to in point 4 of this article, a taxpayer should file a written explanation in person with the body of the tax service on the reasons for their absence during a tax investigation. A body of the tax service shall perform the acts established by this Code if the above requirement is not met or if tax investigation notification sent by a body of the tax service is returned by a mail or other communication organisation due to a taxpayers absence at its registered location.
Article 559. Participation of Witnesses investigating a Particular Action 1. Officials of the bodies of the tax service may, if they or a taxpayer (tax agent) require, request the participation of witnesses to: 1) serve notification to fulfil a tax obligation, instructions for the suspension of cash expense operations, decisions to limit the disposal of property, an act of inventory, notification of a tax 348
audit, instructions, act of tax audit and other documents from the bodies of the tax service stipulated by this Code; 2) 3) limit the disposal of a taxpayers (tax agents) property; investigate property that is an object of taxation and (or) object relating to taxation, irrespective of the location, based on an instruction; on the basis of an instruction, carry out a stock take of a taxpayers (tax agents) property (except for residential premises), with the possibility of using special tools (photographic, audio and video equipment), in accordance with the procedure established by this Code; a tax investigation.
4)
5) 2.
Any adults or capable individuals, numbering at least two, and uninterested in the outcome of the actions of an official of the bodies of the tax service and taxpayer (tax agent) may be engaged as witnesses. Officials of the state bodies, the employees and founders of a taxpayer (tax agent) in relation to whom actions are taking place may not participate as witness. Witnesses shall certify the fact, content and results of actions of officials of the bodies of the tax service and a taxpayer (tax agent) at which they were present, and which have been recorded in a protocol (act) compiled by the official of the bodies of the tax service. A witness shall be entitled to comment on actions carried out. A witnesss comments shall be entered in a protocol (act) compiled by an official of the bodies of the tax service. A protocol (act) compiled by an official of the bodies of the tax service together with a witness shall show: 1) the position, surname, name and patronymic (if applicable) of the official of the bodies of the tax service who compiled the protocol (act); the name of the body of the tax service; the place and date where the actions were concluded; the surname, name, patronymic (if applicable), date of birth, place of residence, name and number of the identification document of each individual participating in or present at a particular action; the content and sequence of actions; the start and end time of actions; the facts and circumstances discovered during actions.
3.
4.
5.
6.
2) 3) 4)
5) 6) 7) 7.
An official of a body of the tax service should be acquainted with a protocol (act) of individuals who participated in or were present at actions. Once acquainted with a protocol (act), an official of the bodies of the tax service, as well as all individuals participating in or present at an action, shall sign the protocol (act). A protocol (act) shall include photographs and negatives, video recordings or other materials produced when concluding actions (if applicable). A protocol (act) compiled by an official of the bodies of the tax service in accordance with the procedure established by this article shall record and confirm the actions listed in point 1 of this article.
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Chapter 81. Registration of taxpayers with the tax bodies

Article 560. General Provisions 1. 2. 3. The authorised body shall keep a record of taxpayers by creating a state database of taxpayers. The state database of taxpayers shall be an information system used to record taxpayers. The creation of a state database of taxpayers shall involve: 1) registering individuals and legal entities, a legal entitys structural subdivisions with the bodies of the tax service as taxpayers; a record of the registration of a taxpayer: as an individual entrepreneur, private notary or advocate; as a payer of value added tax; as an electronic taxpayer; as a taxpayer performing certain types of activity; at the location of an object of taxation and (or) object relating to taxation. 4. The registration of an individual, legal entity or the structural subdivisions of a legal entity as a taxpayer shall include: 1) 2) 3) 5. entering data on the individuals and persons in question in the state database of taxpayers; changing and (or) adding registration data to the state database of taxpayers; removing data on a particular taxpayer from the state database of taxpayers.
2)
The registration of a taxpayer shall include making a record of registration as referred to in subpoint 2) of point 3 of this article, making amendments and (or) additions to a taxpayers registration data, de-registering a taxpayer. A taxpayers registration data shall be understood to mean data on a taxpayer provided to or filed with the bodies of the tax service by: 1) 2) the authorised state bodies; banks or organisations performing certain banking operations, in accordance with subpoints 1) and 4) of article 581 of this Code; taxpayers.
6.
3) 7.
This Code shall recognise: 1) an individuals place of residence as a citizens place of registration in accordance with legislation of the Republic of Kazakhstan on the registration of citizens; the location of an individual entrepreneur, private notary and advocate as the place of residence or centre of vital interest of an individual entrepreneur, private notary or advocate declared when making a record of registration with a tax body as an individual entrepreneur, private notary or advocate; the location of a resident legal entity, its structural subdivisions, the structural subdivision of a non-resident legal entity as the location of its constantly functioning body referred to in foundation documents or a certificate of the record of registration of a structural subdivision; 350
2)
3)
4)
the location of a non-resident legal entity operating through a permanent establishment without opening a branch or representative office as the place of operation in the Republic of Kazakhstan declared when registering as a taxpayer with a tax body; a non-resident individuals place of stay as a non-resident individuals temporary place of state in the Republic of Kazakhstan as referred to in a migration card. If the provisions of an international treaty do not stipulate having a migration card, the place of stay shall be recognised as the main place of stay in the Republic of Kazakhstan as declared by a nonresident individual with a tax body.
5)
1. Registration as a Taxpayer Article 561. Entry of Information on Individuals, Legal Entities, the Structural Subdivisions of Legal Entities in the State Database of Taxpayers 1. A tax body shall enter information in the state database of taxpayers after individuals, legal entities and the structural subdivisions of a legal entity have received an identification number on the basis of information in national registers of identification numbers. The tax bodies shall enter information to the state database of taxpayers on: 1) resident individuals, including foreign nationals or stateless individuals in their place of residence or stay; a resident legal entity and its structural subdivisions, the structural subdivisions of a nonresident legal entity in their location; a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office at the location of the permanent establishment; a non-resident that is a tax agent in accordance with point 5 of article 197 of this Code purchasing securities, participation interest related to subsoil use in the Republic of Kazakhstan at the location of a resident or consortium holding the subsoil use right in the Republic of Kazakhstan listed in subpoints 2)-4) of point 1 of article 197 of this Code; a non-resident that is a tax agent in accordance with point 5 of article 197 of this Code purchasing immovable property in the Republic of Kazakhstan at the location of the immovable property; diplomatic or equivalent representations of foreign countries accredited in the Republic of Kazakhstan at the location of the diplomatic representation; a non-resident operating through a dependent agent treated as the non-residents permanent establishment according to point 8 of article 191 of this Code in the place of registration of the dependent agent; a non-resident opening current accounts in resident banks at the location of the resident bank.
2.
2)
3)
4)
5)
6)
7)
8) 3.
The bodies of the tax service shall enter information into the state database of taxpayers within three working days from the day they receive information from national registers of identification numbers. Information on individuals in the national register of individual identification numbers shall be transferred by the authorised state body to the bodies of the tax service when an individual reaches 16 years of age. If individuals who are not yet 16 years of age have tax obligations, then information on these individuals shall be passed to the bodies of the tax service at the request of a tax body.
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Article 562. Special Considerations of the Registration of a Non-Resident as a Taxpayer 1. To register as a taxpayer a non-resident legal entity operating through a permanent establishment without opening a branch or representative office should file a tax application with a tax body at the permanent establishments location within 30 calendar days of the date activities are started in the Republic of Kazakhstan through a permanent establishment in accordance with article 191 of this Code, together with notarised copies of: 1) 2) foundation documents; documents confirming state registration in a non-residents country of incorporation, and showing a state registration number (or equivalent); documents confirming tax registration in a non-residents country of incorporation, showing a tax registration number (or equivalent), if applicable.
3)
2.
To register as a taxpayer a non-resident classed as a tax agent in accordance with point 5 of article 197 of this Code and purchasing immovable property in the Republic of Kazakhstan should file a tax application to make a record of registration with the tax body at the location of the immovable property before property is purchased, together with notarised copies of: 1) a document confirming the identity of a non-resident individual, or a non-resident legal entitys foundation documents; a document confirming state registration in the non-residents country of incorporation, and which shows the non-resident legal entitys state registration number (or equivalent); a document confirming tax registration in the non-residents country of incorporation (citizenship), showing a tax registration number (or equivalent), if applicable.
2)
3)
3.
To register a non-resident as a taxpayer, a dependent agent whose activities in accordance with point 8 of article 191 of this Code are regarded as the non-residents permanent establishment should file a tax application to make a record of registration with the tax body at their place of residence (location) within 30 calendar days from the date operations start as determined in accordance with point 13 of article 191 of this Code, together with notarised copies of: 1) a treaty (agreement, contract or other document), if available, authorising the performance of business activities on behalf of a non-resident, the signing of contract or for other purposes; a document confirming the identity of a non-resident individual, or the foundation documents of its permanent establishment; a document confirming state registration in the country of incorporation of its permanent establishment, showing the state registration number (or equivalent) of the non-resident legal entity; a document confirming tax registration in the country of incorporation (citizenship) of its permanent establishment, showing the tax registration number (or equivalent), if the nonresident has one.
2)
3)
4)
4.
A non-resident opening current accounts in resident banks should registered as a taxpayer before opening an account. To register as a taxpayer, a non-resident should file a tax application with the tax body at the location of the bank to make a record of registration, together with notarised copies of the documents established by point 2 of this article. Foreign nationals and stateless individuals receiving income from sources in the Republic of Kazakhstan that is not taxable at the source of payment in accordance with the provisions of this Code should file a tax application to make a record of registration within 30 calendar days of starting operations as determined in accordance with point 13 of article 191 of this Code with the tax body at their place of stay (residence), together with notarised copies of: 1) a document confirming the identity of the foreigner or stateless individual; 352
5.
2)
a document confirming tax registration in the country of citizenship (residence), showing a tax registration number (or equivalent), if such a number exists; a document confirming income from sources in the Republic of Kazakhstan, if such a document exists.
3)
6.
The non-resident referred to in subpoint 4) of point 2 of article 561 of this Code shall be registered as a taxpayer based on information from the authorised state body for the regulation and control of power engineering and mineral resources on the purchase of securities or participation interest related to subsoil use in the Republic of Kazakhstan. Diplomatic or equivalent representations of a foreign country accredited in the Republic of Kazakhstan shall be registered as a taxpayer on the basis of a tax application to make a record of registration. For the purposes of generating an identification number and registration certificate for the persons listed in points 1-7 of this article, a tax body shall send electronic notification to the justice bodies within one working day from the day a tax application is received to make a record of registration, or information from the authorised state bodies. The justice bodies shall send electronic notification on the generation of an identification number for the non-residents listed in points 1-7 of this article no later than one working day from the date electronic notification is received from the tax bodies.
7.
8.
9.
10. A tax body shall register the non-resident listed in points 1-7 of this article as taxpayers by issuing a registration certificate in the format approved by the authorised body, and within the deadline established by point 3 of article 561 of this Code. 11. The registration certificate of a non-resident listed in subpoint 4) of point 2 of article 561 of this Code and purchasing securities and participation interest related to subsoil use in the Republic of Kazakhstan shall be stored with the tax body at the location of a resident or consortium holding a subsoil use right in the Republic of Kazakhstan as referred to in subpoints 2)-4) of point 1 of article 197 of this Code, until it is claimed by the non-resident. 12. If information is received from the authorised state body or tax application to make a record of registration for the non-residents referred to in points 1-7 of this article and who have identification numbers, a tax body shall not send electronic to the justice bodies to generate an identification number and registration number. In this respect, a record of registration for the persons listed in subpoint 7) of point 2 of article 561 of this Code shall be made according to the location of their dependent agents. Article 563. Amendments and Additions to Registration Data in the State Database of Taxpayers 1. The tax bodies shall amendment and supplement registration data provided for registering the following as taxpayers: 1) 2) individuals based on information from the national register of individual identification numbers; resident legal entities and their structural subdivisions, the structural subdivisions of nonresident legal entities based on information from the national register of business identification numbers; non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office based on a tax application to make a record of registration; non-residents that are tax agents in accordance with point 5 of article 197 of this Code when the resident or consortium with a subsoil use rights in the Republic of Kazakhstan and referred to in subpoints 2)-4) of point 1 of article 197 of this Code change their location based on information from the national register of business identification numbers on that particular resident;
3)
4)
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5)
diplomatic or equivalent representations of foreign countries accredited in the Republic of Kazakhstan based on a tax application to make a record of registration; a non-resident operating through a dependent agent treated as the non-residents permanent establishment according to point 8 of article 191 of this Code based on a tax application filed with a tax body by a dependent agent; non-resident individuals and legal entities with current accounts in resident banks based on bank notification.
6)
7)
2.
Information on an employee responsible for budget settlements, the telephone number and e-mail address of a legal entity and its structural subdivisions shall be changed based on a tax application to make a record of registration. Information on taxpayers bank accounts shall be changed based on information from banks or organisations performing certain banking operations filed in accordance with the procedure and within the deadline established by article 581 of this Code. Individuals, when changing a place of residence (stay), shall be entitled to file a tax application themselves with the tax body at the new place of residence to make changes to registration data, together with documents confirming a change in the taxpayers place of residence (stay). A tax application to change a taxpayers registration data shall be filed with the tax body at the taxpayers (tax agents) location (place of residence) no later than 10 working days from the moment changes arise. The tax bodies shall make changes to a taxpayers registration data within three working days from the day information is received from national registers of identification numbers, authorised state bodies, banks or organisations performing certain banking operations or from a tax application to make a record of registration.
3.
4.
5.
6.
Article 564. Removal of a Taxpayer from the State Database of Taxpayers 1. The tax bodies shall remove a taxpayer from the state database of taxpayers based on information from national registers of identification numbers if: 1) 2) 3) an individual has died or been declared as deceased; an individual has left the Republic of Kazakhstan for a permanent place of residence; legal entities, their structural subdivisions have been removed from the state register of legal entities, or if a legal entitys structural subdivisions have been de-registered; a non-resident ceases operating through a permanent establishment; a foreigner or stateless individual ceases operating in the Republic of Kazakhstan; a non-resident that is a tax agent in accordance with point 5 of article 197 of this loses rights to immovable property, shares and (or) participation interest, if the non-resident has no other object of taxation in the Republic of Kazakhstan; a diplomatic or equivalent representation of a foreign country accredited in the Republic of Kazakhstan ceases operations; a non-resident ceases operations through a dependent agent in the Republic of Kazakhstan, which is regarded as the permanent establishment of the non-resident in accordance with point 8 of article 191 of this Code; the non-resident referred to in subpoint 8) of point 2 of article 561 of this Code closes a current account in a resident bank, provided the non-resident has no current accounts in resident banks or there is no information on current accounts being opened within six months from the day a bank receives notification. 354
4) 5) 6)
7)
8)
9)
2.
To exclude the persons referred to in subpoints 3)-8) of point 2 of article 561 of this Code from the state database of taxpayers, a tax body shall send electronic notification to the justice bodies on the de-registration of: 1) a non-resident operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office based on a tax application for deregistration; the non-resident referred to in subpoint 4) of point 2 of article 561 of this Code based on information from the authorised state body for the regulation and control of power engineering and mineral resources on the realisation of securities or participation interest related to subsoil use in the Republic of Kazakhstan; a foreigner or stateless individual based on a tax application for de-registration; diplomatic or equivalent representations of a foreign country accredited in the Republic of Kazakhstan based on information from the authorised state body responsible for foreign political activities, on the termination of the activities of diplomatic or equivalent representations of a foreign country accredited in the Republic of Kazakhstan; the non-resident referred to in subpoint 7) of point 2 of article 561 of this Code based on a tax application from a dependent agent for de-registration; a non-resident with a current account in resident banks based on bank notification on the closure of the non-residents current account.
2)
3) 4)
5)
6)
3.
Electronic notification showing information on the non-residents referred in point 2 of this article shall be provided by the tax bodies to the justice bodies within one working day of the date it receives information from the authorised state bodies, bank notification or a tax application for deregistration. A tax body shall remove a taxpayer from the state database of taxpayers based on information in national registers of identification numbers provided a taxpayer has no non-fulfilled tax obligations.
4.
2. Record of Registration of Individual Entrepreneurs, Private notaries and advocates Article 565. Record of Registration as an Individual Entrepreneur, Private Notary or Advocate 1. A tax body shall make a record of registration for an individual as an individual entrepreneur by issuing a certificate of state registration as an individual entrepreneur in accordance with the procedure and within the deadline determined by legislation of the Republic of Kazakhstan on private business activities. The tax bodies shall not make a record of registration for an individual as an individual entrepreneur whose activities as an individual entrepreneur are not permitted by legislation of the Republic of Kazakhstan. A tax body shall make a record of registration for an individual as an advocate or private notary according to their location based on a tax application to make a record of registration as an individual entrepreneur, private notary or advocate. Originals of the following documents shall be presented and copies attached to a filed tax application to make a record of registration as a private notary or advocate: a document confirming identity; a license for the right to perform private notary or advocate activities; a document confirming the location of a private notary or advocate.
2.
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A document confirming the location of a private notary or advocate shall be a citizens registration book or a document confirming ownership rights to immovable property or rights to use the property. 4. The tax bodies shall make a record of registration for an individual as an individual entrepreneur, private notary or advocate within three working days from the day it receives a tax application from the individual.
Article 566. Change in the Registration Data of an Individual Entrepreneur, Private Notary or Advocate 1. A tax body shall change the registration data of an individual entrepreneur, private notary or advocate based on a tax application to make a record of registration for an individual entrepreneur, private notary or advocate. An individual entrepreneur, private notary or advocate should file the tax application referred to in point 1 of this article with the tax body at their location within 10 working days from the day the following change: 1) the registration data referred to in a certificate of the state registration of an individual entrepreneur; the location of the private notary or advocate.
2.
2) 3.
The following shall be attached to a tax application to change the registration data of an individual entrepreneur, private notary or advocate: 1) by an individual entrepreneur the original of a certificate on the state registration of an individual entrepreneur, and also documents presented for the state registration of an individual entrepreneur in accordance with legislation of the Republic of Kazakhstan on private business activities; by a private notary or advocate the documents established by point 3 of article 565 of this Code.
2)
4.
A tax body shall change an individual entrepreneurs registration data in a certificate of the state registration of an individual entrepreneur by replacing a certificate of the state registration of an individual entrepreneur within three working days from the day a tax application filed to change registration data is received. A tax body shall change information on the location of a private notary or advocate within three working days from the day it receives a tax application filed to change registration data.
5.
Article 567. De-Registration as an Individual Entrepreneur, Private Notary or Advocate 1. A tax body shall de-register an individual as an individual entrepreneur based on a tax application to make a record of registration for an individual entrepreneur, private notary or advocate in accordance with the procedure established by legislation of the Republic of Kazakhstan on private business activities. A tax body shall de-register an individual as a private notary or advocate based on a tax application to make a record of registration for an individual entrepreneur, private notary or advocate. A tax body shall de-register an individual as an individual entrepreneur, private notary or advocate provided they have no overdue tax obligations.
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3.
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3. Record of Registration of Payers of Value Added Tax Article 568. Obligatory Record of Registration for Value Added Tax 1. Unless otherwise stipulated by this point, resident legal entities, non-residents operating in the Republic of Kazakhstan through a branch or representative office, individual entrepreneurs shall make a record of registration for value added tax in accordance with the procedure established by point 2 of this article. The following shall not be subject to an obligatory record of registration for value added tax: state institutions; the persons referred to in articles 411, 420 and 442 of this Code with respect to activities subject to tax on the gaming business, fixed tax and unified land tax respectively. 2. If turnover for the calendar year exceeds minimum turnover determined in accordance with this point, the persons referred to in point 1 of this article should file a tax application for a record of registration for value added tax with the tax body at their location within 10 working days from the end of the month in which minimum turnover was exceeded. The size of turnover shall be determined on an accrual basis by: newly created resident legal entities, the branches and representative offices through which a nonresident operates in the Republic of Kazakhstan from the date of state registration (record of registration) with the justice bodies; individuals who have recently made a record of registration with the tax bodies as individual entrepreneurs from the date of the record of registration with the tax bodies; other taxpayers from 1 January of the current calendar year. For the purposes of making a record of registration for value added tax a taxpayers turnover shall include turnover, except for the non-taxable turnover referred to in article 232 of this Code: 1) 2) from realising goods, performing work and providing services in the Republic of Kazakhstan; from a purchase from a non-resident who is not a payer of value added tax in the Republic of Kazakhstan and who does not operate through a branch or representative office, and for whom the place of realisation of work or services is the Republic of Kazakhstan. The place of realisation of work and services shall be determined in accordance with article 236 of this Code. 3. For the purposes of making a record of registration for value added tax, a taxpayer making budget settlements according to the special tax regime for farms or farm holdings, shall not include realisation turnover from activities subject to the special tax regime in turnover, A trust manager should file a tax application to make a record of registration for value added tax with the tax body at its location in person within five working days from the date it enters into a trust management agreement of the date of a different document considered the basis for trust management if the settler under the trust management agreement or beneficiary in other trust management cases is a payer of value added tax. In cases when the settler under a trust management agreement or beneficiary in other trust management cases is not a payer of value added tax, the trust managers obligatory record of registration for value added tax shall be made according to the principles stipulated in point 1 of this article. Minimum turnover shall amount to 30,000 times the monthly calculation index set by the law on the state budget for the relevant financial year.
4.
5.
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6.
The individuals referred to in point 1 of this article shall become payers of value added tax on the first of the month following the month in which they filed a tax application to make a record of registration for value added tax, unless otherwise stipulated by this article. Resident legal entities, non-residents operating in the Republic of Kazakhstan through a branch or representative office shall attach a notarised copy of a document confirming the location of the taxpayer to a tax application filed to make a record of registration for value added tax. A document confirming ownership or user rights to immovable property shall be considered a document confirming a taxpayers location. The period between the notarisation of a copy of a document confirming a taxpayers location, and the date it is filed with a tax body should not exceed 10 working days.
7.
8.
If it is discovered that the person referred to in point 1 of this article has not filed a tax application to make a record of registration for value added tax, a tax body shall send the taxpayer notification within five working days of the discovery requesting the elimination of breaches of tax legislation of the Republic of Kazakhstan in accordance with the procedure established by article 608 of this Code. If a taxpayer fails to file a tax application to make a record of registration according to notification from a tax body sent in accordance with point 8 of this article within the deadline set by point 2 of article 608 of this Code, the tax body shall issue an instruction to suspend expense operations on the taxpayers bank accounts in accordance with the procedure established by article 611 of this Code.
9.
Article 569. Voluntary Record of Registration for Value Added Tax 1. Unless otherwise stipulated by this point, persons not subject to making an obligatory record of registration for value added tax in accordance with point 1 of article 568 of this Code shall be entitled to file a tax application to make a record of registration for value added tax with the tax body at their location in person. The following shall not be entitled to make a voluntary record of registration for value added tax: individuals who are not individual entrepreneurs; state institutions; non-residents not operating in the Republic of Kazakhstan through a branch or representative office; the persons referred to in articles 411 and 420 of this Code, with respect to activities subject to tax on the gaming business and fixed tax accordingly. Resident legal entities, non-residents operating in the Republic of Kazakhstan through a branch or representative office should attach the documents listed in point 7 of article 568 of this Code to a tax application filed to make a record of registration for value added tax. 2. A tax body should make a record of registration for value added tax within 10 working days from the day it receives a tax application to make a record of registration for value added tax, and shall issue a certificate of the record of registration for value added tax or a decision to refuse a record of registration for value added, in the format established by the authorised body. The persons referred to in point 1 of this article shall become payers of value added tax from the first of the month following the month in which they filed a tax application to make a record of registration for value added tax. 3. The tax bodies shall refuse a taxpayers voluntary record of registration for value added tax if one of the following conditions are met at the date the taxpayer files a tax application to make a record of registration for value added tax:
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1)
the taxpayer has not fulfilled its tax obligation to file tax reporting in accordance with the procedure and within the deadline established by the special part of this Code; two years have not passed since the taxpayer in question de-registered for value added tax purposes based on a decision of a tax body; the documents established by point 7 of article 568 of this Code have not been filed.
2)
3) 4.
A decision to refuse a record of registration as a payer of value added tax shall be served to a taxpayer in person in return for a signature, or by a different method that confirms dispatch.
Article 570. Value added tax registration certificate 1. A value added tax registration certificate shall be a pre-numbered form and certify a taxpayers record of registration for value added tax. The form of the certificate shall be established by the authorised body. A value added tax registration certificate shall be issued to a taxpayer in return for a signature. The issue of a certificate shall be registered in a log of value added tax registration certificates. 2. A value added tax registration certificate shall contain the following obligatory information: 1) 2) 3) 4) the taxpayers name and (or) surname, name, patronymic (if applicable); an identification number; the date a taxpayer makes a record of registration for value added tax; the issue date, which should correspond to the date a value added tax registration certificate is signed by a tax body; the name of the tax body that issued the certificate.
5) 3. 4.
A value added tax registration certificate shall be kept with the payer of value added tax. If a taxpayer is de-registered for value added tax purposes its value added tax registration certificate shall be returned to the tax body, except for those cases when a taxpayer has lost a certificate. If a value added tax registration certificate has been lost (damaged), it shall be replaced based on a tax application from the taxpayer. If a payer of value added tax changes its name; surname, name and patronymic (if applicable), it shall replace its certificate when changing its registration data in accordance with the procedure stipulated by articles 563 and 566 of this Code. When issuing a new value added tax registration certificate the previous certificate shall be returned to the tax body, except for those cases when a taxpayer has lost the certificate in question.
5.
6.
Article 571. De-Registration for Value Added Tax Purposes 1. To de-register for value added tax purposes a payer of value added tax shall be entitled to file a tax application to make a record of registration for value added tax with the tax body at its location if during the calendar year preceding the year in which it filed a tax application its taxable turnover did not exceed the minimum realisation turnover set by article 568 of this Code. The following documents shall be attached to a tax application filed to de-register for value added tax purposes: 1) an original value added tax registration certificate , except for when a taxpayer loses a certificate; 359
2.
2) 3.
a liquidation value added tax declaration.
The tax bodies should de-register a taxpayer for value added tax purposes within five working days from the date it files a tax application, provided the requirements set by point 2 of this article have been met. A taxpayer shall be de-registered for value added tax purposes on the basis of a decision of a tax body, without notification of the taxpayer, in the following cases: 1) the payer of value added tax has failed to file value added tax reporting for six months from the previous deadline for doing established by this Code; the tax body has confirmed the actual absence of the payer of value added tax from its location in accordance with the procedure established by article 558 of this Code; a payer of value added tax has been recognised as a fictitious enterprise based on a court verdict or resolution.
4.
2)
3)
5.
A decision to de-register for value added tax purposes shall be taken by a tax body at the taxpayers location within five working days: from the day the cases referred to in subpoints 1) and (or) 2) of point 4 of this article arose; from the day a tax body receives a court verdict or resolution recognising a taxpayer as a fictitious enterprise.
6.
A payer of value added tax shall be recognised as de-registered for value added tax purposes according to a decision of a tax body: from the date a decision is taken for the persons referred to in subpoints 1) and (or) 2) of point 4 of this article; from the date criminal activity starts for the person referred to in subpoint 3) of point 4 of this article.
7.
De-registration for value added tax purposes shall be carried out: 1) if a legal entity or non-resident legal entity operating in the Republic of Kazakhstan through a branch or representative office, individual entrepreneur who are all payers of value added tax cease activities from the date the tax application referred to in articles 37-43 of this Code is filed; when legal entities are reorganised by a merger or combination from the day the legal entities making up the newly created legal entity combining a legal entity are removed from the state register of legal entities; when a legal entity is reorganised through a division from the date a value added tax registration certificate or an explanation as to its loss or damage are filed.
2)
3)
8.
If a payer of value added tax is liquidated due to bankruptcy, de-registration for value added tax purposes shall be carried out from the date a legal entity is withdrawn from the state register of legal entities or an individual entrepreneur is de-registered. Information on the de-registration of a payer of value added tax according to a decision of a tax body shall be placed on the authorised bodys website for the working day following the day a decision is made to de-register it for value added tax purposes.
9.
10. A value added tax registration certificate shall be suspended by the tax bodies on the basis of a decision to suspend the filing of tax reporting by a payer of value added tax for the period indicated by a taxpayer in a tax application to suspend activities, but for no more than the period established by article 46 of this Code.
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If a payer of value added tax extends the deadline for filing tax reporting, the validity of a value added tax registration certificate shall be suspended until the taxpayer renews activities. 11. Information on the suspension period of a value added tax registration certificate shall be placed on the authorised bodys website for the working day following the day a decision was made to suspend the filing of tax reporting by the payer of value added tax. 4. Record of Registration as an Electronic Taxpayer Article 572. Record of Registration as an Electronic Taxpayer 1. The record of registration of an individual, legal entity, its structural subdivisions as electronic taxpayers shall be voluntary and shall be carried out after registration with a tax body as a taxpayer. To make a record of registration as an electronic taxpayer a taxpayer shall file a tax application in person to make a record of registration as an electronic taxpayer with the tax body at its location or at the taxpayers place of residence. Filing a tax application to make a record of registration as an electronic taxpayer shall mean that the taxpayer in question agrees to exchange electronic documents by electronic means of communication that guarantee the delivery of information, including the receipt of notification from the tax bodies as stipulated by this Code. 3. A tax body shall issue a taxpayer with the following within three working days from the day it receives a tax application to make a record of registration as an electronic taxpayer: 1) 2) an electronic information medium with a key container and electronic digital signature; an agreement to use and recognise an electronic digital signature when exchanging electronic documents.
2.
4.
The format of the agreement to use and recognise an electronic digital signature in the exchange of electronic documents shall be established by the authorised body.
Article 573. Replacement and Cancellation of an Electronic Digital Signature 1. A taxpayer shall be entitled to file a tax application to make a record of registration as an electronic taxpayer to reject a key container and electronic digital signature, or replace it, with the tax body at its location or place of residence if: 1) 2) 3) 4) 2. a decision has been taken not to use an electronic digital signature; a registration certificate has expired; an electronic information with a key container and electronic digital signature has been lost; an electronic information with a key container has been damaged meaning it does not work.
A tax body shall cancel or replace an electronic digital signature within three working days from the moment it files a tax application to make a record of registration as an electronic taxpayer to refuse a key container and electronic digital signature, or replace it. A tax body shall cancel an electronic digital signature without a tax application from a taxpayer within three working days from the date the taxpayer is removed from the state database of taxpayers.
3.
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5. Record of Registration of Taxpayer performing Certain Activities Article 574. Record of Registration as a Taxpayer performing Certain Activities 1. Taxpayers performing the following types of activities shall make a record of registration as taxpayer performing certain activities: 1) 2) producing gasoline (except for aviation fuel) and diesel; carrying out the retail and (or) wholesale realisation of gasoline (except for aviation fuel) and diesel; producing ethanol and (or) alcoholic products; carrying out the wholesale realisation of alcoholic products; producing and (or) carrying out the wholesale realisation of tobacco items; organising and conducing lotteries and realising lottery tickets; the gaming business; services using gaming machines without a cash prize, personal computers for games, bowling alleys, cards and billiard tables.
3) 4) 5) 6) 7) 8)
2.
A record of registration as a taxpayer performing certain types of activities shall involve registering with the tax bodies objects of taxation and (or) objects relating to taxation and used in performing the activities referred to in point 1 of this article. A record of registration as a taxpayer performing certain types of licensed activities, provided the appropriate license is held, shall be made for a period that does not exceed the validity of the license. To make a record of registration as a taxpayer performing certain types of activities a taxpayer should file a tax application to make a record of registration itself with respect to certain activities with the tax body at the location of an object of taxation and (or) object relating to taxation. The tax application referred to in point 4 of this article shall be filed with a tax body within three working days before the specific activities are due to start, unless otherwise stipulated by this article, together with copies of the following documents: 1) when performing the activities referred to in subpoint 2) of point 1 of this article a document confirming the ownership rights, or a lease agreement for a petrochemical depot or fuelling station; when performing the activities referred to in subpoints 1), 4) and 7) of point 1 of this article a license to perform the activities referred to in subpoints 1), 4) and 7) of point 1 of this article.
3.
4.
5.
2)
6.
Within three working days of filing a tax application a tax body shall make a record of registration of a taxpayer performing certain activities at the location of the object of taxation and (or) object relating to taxation, and shall also issue a registration card. A registration card shall be a pre-numbered form issued by a tax body when making a record of registration of a taxpayer performing certain activities, which certifies the registration of objects of taxation and (or) objects relating to taxation with the tax bodies. Information on registration cards issued shall be recorded in a registration card log. The format of registration cards and the registration card log shall be established by the authorised body.
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7.
If a taxpayer has several gaming establishments (permanent locations), a registration card shall be issued for each gaming establishment (permanent location). A permanent location shall be a place where business activities are performed making use of gaming machines without a cash prize, personal computers for games, bowling alleys, cards and billiard tables. Objects of location and (or) objects relating to taxation that have not been registered with the tax bodies may not be used or located in a gaming establishment (permanent location). If a taxpayer has several objects of taxation and (or) objects relating to taxation, and which are used in performing the activities referred to in subpoints 1)-5) of point 1 of this article, a registration card shall be issued separately for each object of taxation and (or) object relating to taxation. For the purposes of this point, the term object relating to taxation shall be understood as a petrochemical depot, fuelling station, as well as permanent and (or) warehouse premises that are used to perform the activities referred to in subpoints 3)-5) of point 1 of this article.
8.
9.
10. A taxpayer performing activities to organise and conduct lotteries, and to realise lottery tickets should register each issue of lottery tickets with a tax body 10 calendar days before they are to be realised. Article 575. Amendments and Additions to the Registration Data of Taxpayers performing Certain Activities 1. When information on the objects of taxation and (or) objects relating to taxation referred to in a registration card is changed, a taxpayer should, within three working days of the amendment, file the tax application referred to in point 4 of article 574 of this Code with the tax body at the place of registration of the objects of taxation and (or) objects relating to taxation. If a registration card is lost (damaged) it shall be replaced based on the tax application referred to in point 4 of article 574 of this Code and filed with the tax body at the place of registration of the objects of taxation and (or) objects relating to taxation. A tax body shall replace a registration card due to a change in information on objects of taxation and (or) objects relating to taxation, or the loss (damage) of the registration card within three working days of receiving a tax application.
2.
3.
Article 576. De-Registration as a Taxpayer performing Certain Activities 1. A taxpayer shall be subject to de-registration as a taxpayer performing certain activities, based on the tax application referred to in point 4 of article 574 of this Code, if: 1) 2) the activities referred to in point 1 of article 574 of this Code have been ceased; all the objects of taxation and (or) objects relating to taxation referred to in a registration card have been de-registered.
2.
A tax application for de-registration as a taxpayer performing certain activities shall be filed together with a registration card to the tax body at the place of registration of objects of taxation and (or) objects relating to taxation within three working days from the date the activities established by point1 of article 574 of this Code are ceased, or the total number of the objects of taxation and (or) objects relating to taxation referred to in a registration card are de-registered. A taxpayer performing certain activities shall be de-registered based on a decision of a tax body when: 1) 2) a license of a taxpayer performing certain licensed activities expires; a lease agreement of a taxpayer performing the activities referred to in subpoint 2) of point 1 of article 574 of this Code are ceased;
3.
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3)
a taxpayer performing the activities referred to in subpoints 1) and 2) of point a of article 574 of this Code fails to file an excise duty declaration for six months after the filing deadline set by this Code.
4.
A decision to de-register a taxpayer performing certain activities shall be made by the tax body at the place of registration of objects of taxation and (or) objects relating to taxation, in the format established by the authorised body, within five working days from the date the cases referred to in point 3 of this article arise. Information on taxpayers de-registered as taxpayer performing certain activities shall be placed on the authorised bodys website for three working days from the date of de-registration.
5.
6. Record of Registration at the location of the Objects of Taxation and (or) Objects relating to Taxation Article 577. Record of Registration at the location of Objects of Taxation and (or) Objects relating to Taxation 1. A tax body shall make a record of registration of a taxpayer at the location of an object of taxation and (or) object relating to taxation to ensure the taxpayers payment of taxes on property and means of transport, land tax, unified land tax and other obligatory payments to the budget based on information from the authorised state bodies responsible for recording and registering objects of taxation and (or) objects relating to taxation, in accordance with article 583 of this Code, unless otherwise established by this chapter. Individuals with ownership rights, the right to permanent use of land, the first temporary use of land free of charge, temporary use of land in return for a fee, temporary possession and use, trust management of objects of taxation and (or) objects relating to taxation, for which a tax body has no information, shall be entitled to file a tax application to make a record of registration with the tax body at the location of the object of taxation and (or) object relating to taxation. For construction in progress that is an object of taxation in accordance with subpoint 2) of article 405 of this Code, an individual should file a tax application to make a record of registration with the tax body at the location of the object of taxation within 10 days from the day of occupation or commission. 3. Legal persons and individual entrepreneurs with an object of taxation and (or) object relating to taxation under ownership rights, rights to permanent land use, the initial temporary use of land free of charge, the temporary use of land in return for a fee, the temporary possession and use of land, trust management should file the tax application referred to in point 2 of this article within 10 working days from the date the rights in question arise, to make a record of registration with the tax body at the location of the object of taxation and (or) object relating to taxation. Notarised copies of title, identification or other documents confirming the possession, use and (or) disposal of an object of taxation and (or) object relating to taxation shall be attached to the tax application referred to in point 2 of this article and filed to make a record of registration at the location of the object of taxation and (or) object relating to taxation. A tax body shall make a record of record of registration for a taxpayer at the location of objects of taxation and (or) objects relating to taxation within three working days from the date it receives information from the authorised state bodies and (or) tax application referred to in point 2 of this article.
2.
4.
5.
Article 578. De-Registration at the Location of Objects of Taxation and (or) Objects relating to Taxation 1. A tax body shall de-register a taxpayer at the location of objects of taxation and (or) objects relating to taxation provided that tax obligations with respect to the objects of taxation and (or) objects relating to taxation have been fulfilled, in the following cases:
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1)
ownership rights, the right to the permanent use of land, the first temporary use of land free of charge, temporary use of land in return for a fee, commercial management, operating management of objects of taxation and (or) objects relating to taxation have been ceased based on information from the authorised state bodies responsible for recording and registering objects of taxation and (or) objects relating to taxation, unless otherwise established by this article; trust management rights to an object of taxation and (or) object relating to taxation based on a tax application for de-registration in the tax body at the location of the object of taxation and (or) object relating to taxation.
2)
2.
An individual whose ownership rights, the right to the permanent use of land, the first temporary use of land free of charge, temporary use of land in return for a fee, trust management of objects of taxation and (or) objects relating to taxation have been ceased shall be entitled to file a tax application for de-registration in the tax body at the location of the object of taxation and (or) object relating to taxation, should the tax body not have the relevant information. A legal entity whose ownership rights, the right to the permanent use of land, the first temporary use of land free of charge, temporary use of land in return for a fee, commercial management, operating management of objects of taxation and (or) objects relating to taxation have been ceased should file a tax application with the tax body at the location of the object of taxation for deregistration at the location of the object of taxation and (or) object relating to taxation, within 10 working days from the date the right in question ceases, unless otherwise established by this article. Notarised copies of documents confirming the cessation of a right to possess, use and (or) retire an object of taxation and (or) object relating to taxation shall be attached to a tax application filed for de-registration at the location of the object of taxation and (or) object relating to taxation. A tax body shall de-register a taxpayer at the location of objects of taxation and (or) objects relating to taxation within three working days from the date information is received from the authorised state bodies and (or) a tax application from the taxpayer, provided the conditions established by point 1 of this article have been observed.
3.
4.
5.
7. Inactive Taxpayers and Taxpayers undergoing Liquidation Article 579. Inactive Taxpayers 1. 2. Inactive legal entities and individual entrepreneurs shall be regarded as inactive taxpayers. A resident legal entity or non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment that have not filed corporate income tax, tax on the gaming business, fixed tax declarations, and a simplified declaration for one calendar year from the filing deadline set by this Code shall be recognised as an inactive legal entity, except for taxpayers that are not required to file the above declarations. An individual entrepreneur who has not filed individual income tax, tax on the gaming business and fixed tax declarations and a simplified declaration for one year after the filing deadline set by this Code, or a statement of patent value within two years from the date a previous patent expires. Points 2 and 3 of this article shall not extend to resident legal entities or non-resident legal entities operating in the Republic of Kazakhstan through a permanent establishment, the structural subdivisions of a non-resident legal entity and individual entrepreneurs that have suspended activities, for the period that activities are suspended. The tax bodies shall approve a list of taxpayers recognised as inactive annually on or before 30 April, and place information on the authorised bodys website. A taxpayer shall be withdrawn from a list of inactive taxpayers after: 1) a taxpayer has fulfilled its tax obligation to file tax reporting; 365
3.
4.
5.
6.
2)
fines have been paid for a failure to file tax reporting within the deadline set by this Code, if they have been charged to a taxpayer in accordance with legislation of the Republic of Kazakhstan.
7.
The date a taxpayer is excluded from the list of inactive taxpayers shall be the date a tax body issues the corresponding order once all the conditions stipulated by point 6 of this article have been observed. Information on removing a taxpayer from the list of inactive taxpayers shall be placed on the authorised bodys website for three days from the removal date.
Article 580. Taxpayer undergoing Liquidation 1. A person that has filed an application to undergo a documentary liquidation audit (cessation of activities) shall be recognised as a taxpayer undergoing liquidation. Information on a taxpayer undergoing liquidation shall be placed on the authorised bodys website for three days from the date an application is filed to conduct a documentary liquidation audit. 2. The tax bodies shall remove a person from the list of taxpayers undergoing liquidation if: 1) it has been removed from the state register of legal entities for three working days from the day it receives information from the national register of business identification numbers; it has been de-registered as an individual entrepreneur, private notary or advocate for three working days from the date of de-registration; if the taxpayer decides to renew activities for three working days from the date a tax body is informed of the renewal of activities.
2)
3)
8. Obligations of Banks and Organisations performing certain Banking Operations, the Authorised State Bodies to register and make a Record of Registration of Taxpayers Article 581. Obligations of Banks or Organisations performing Certain Banking Transactions Banks or organisations performing certain banking operations should: 1) when opening bank accounts for legal entity taxpayers, including non-residents; their structural subdivisions, individuals performing business, private notary and advocate activities; foreign nationals and stateless individuals, except for bank accounts used to store pension assets from pension savings funds, assets treated as collateral for a bond issue by a special finance company, and the assets of non-residents investment funds and savings accounts and (or) foreign correspondent banks correspondent accounts; notify, indicating an identification number, the authorised body using secure electronic channels that the accounts in question have been opened within one working day from the day they were opened; When notification on the opening of accounts cannot be sent electronically for technical reasons, notification shall be sent to the tax body at the taxpayers location (place of residence) in hard copy within three working days; 2) not conduct transactions on bank accounts, except for on non-residents savings accounts and (or) foreign correspondent banks correspondent accounts, without entering an identification number in payment documents, except for bills of exchange or other payment documents authorising the bank to issue or receive cash; when processing payment documents for taxes and other obligatory payments to the budget, social contributions and transferring obligatory pension contributions, check that the identification number has been correctly recorded in accordance with the rules for generating identification numbers and data from the authorised state body;
3)
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4)
when a taxpayer closes the bank accounts referred to in subpoint 1) of this article, notify the authorised body through a secure electronic channel that they have been closed, indicating an identification number, within the working day following their closure. When notification on the closure of accounts cannot be sent electronically for technical reasons, notification shall be sent to the tax body at the taxpayers location (place of residence) in hard copy within three working days;
5)
when interest income on a loan to a legal entity or individual entrepreneur is no longer recognised, notify the tax body at the taxpayers location (place of residence) on or before the 15th of the month following the quarter in which recognition was ceased, in the format established by the authorised body; when a client has sufficient funds in bank accounts to cover all claims brought against the client, the taxpayers payment orders to pay taxes and make other obligatory payments to the budget from the bank account shall be executed as a priority. The tax bodies collection orders to recover taxes and other obligatory payments to the budget, late payment interest and fines not paid within the established deadlines shall be executed in accordance with the same procedure no later than one operating day from the day instructions are received are received from the tax bodies. If there is insufficient or no funds in bank accounts to cover all claims brought against a client, the bank shall recover funds to clear tax debts in accordance with the priority established by the Civil Code of the Republic of Kazakhstan;
6)
7)
transfer taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions: on the day funds are withdrawn from the taxpayers bank account; no later than the operating day following the date cash is paid into banks or organisations performing certain banking operations;
8)
allow employees of the bodies of the tax service, provided that they are in possession of the relevant order, to inspect transactions carried out on bank accounts by: a legal entity; a individual entrepreneur in business activities; a private notary in notary activities; advocates in advocate activities;
9)
according to a decision of the tax bodies in those cases stipulated by this Code, suspend all expense operations on the bank accounts (except for correspondent accounts) of the taxpayer referred to in subpoint 2) of point 1 of article 609 of this Code, in accordance with the procedure established by legislative acts of the Republic of Kazakhstan, except for transactions to repay a tax debt, overdue obligatory pension contributions and social contributions;
10) when a bank writes off a legal entity or individual entrepreneur borrowers debt, notify the tax bodies at the taxpayer borrowers location (place of residence) within 30 days of any income from writing off liabilities; 11) present the tax bodies at a tax agents location (place of residence) with a report and information on the accrual of bank interest in accordance with the procedure and within the deadline stipulated by point 4 of article 216 of this Code, in the format established by the authorised body; 12) within 10 working days from the day it receives a request from the tax service, provide information on the bank accounts and bank account numbers, on balances and cash flow in these accounts of: legal entities and (or) their structural subdivisions being audited on taxation-related issues;
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individual entrepreneurs being audited on taxation-related issues with respect to current accounts to be used (already used) in business activities; private notaries being audited on taxation-related issues with respect to current accounts to be used (already used) in private notary activities; advocates being audited on taxation-related issues with respect to current accounts to be used (already used) in advocate activities; individual entrepreneurs covered by the special procedure for fulfilling tax obligations if activities are ceased in accordance with article 43 of this Code; legal entities and (or) structural subdivisions, individual entrepreneurs, private notaries, advocates whose actual absence from a particular location has been confirmed in accordance with the procedure established by article 558 of this Code, and who have not filed tax reporting for a sixmonth period since the filing deadline established by this Code, except for when the filing period is extended in those cases stipulated by this Code; inactive legal entities and individual entrepreneurs in accordance with the procedure established by the authorised body in consent with the authorised state body for the regulation and control of the financial market and financial organisations; individuals registered in accordance with the procedure established by law as candidates for president of the Republic of Kazakhstan, deputies of the parliament of the Republic of Kazakhstan and Maslikhat, and also as members of local authorities, and their spouses; individuals who are candidates for a state position or position related to state or similar functions, and their spouses; individuals on parole. The information stipulated by this subpoint shall be provided in the format established by the authorised body with the consent of the authorised state body for the regulation and control of the financial market and financial organisations; 13) refuse to open the bank accounts referred to in subpoint 1) of this article for: taxpayers with a bank account open in the bank to which the bodies of the tax service has issued collection orders or orders to suspend expense operations on the bank accounts (except for correspondent accounts) of the taxpayers referred to in subpoint 2) of point 1 of article 609 of this Code; inactive taxpayers on which information has been placed on the authorised bodys website. For the purposes of this article state institutions accounts opened in the authorised state body to execute the budget shall be treated as bank accounts, while the authorised state body for budget execution shall be treated as an organisation performing certain banking operations. Article 582. Interaction of the Authorised State Bodies in registering and making a Record of Registration of Taxpayers The bodies of the tax service, when registering and making a record of registration of taxpayers, shall interact with the following bodies: 1) responsible for the state registration, re-registration and liquidation of legal entities; making a record of registration or re-registration and de-registering structural subdivisions; for statistics; responsible for recording and (or) registering objects of taxation and objects relating to taxation, including:
2) 3)
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the state registration of rights to immovable property and transactions with it; the state registration of a pledge of movable property and a mortgage for a vessel or vessel in construction; the state registration of radioelectronic equipment and high-frequency devices; the state registration of means of transport; the state registration of medicines; the state registration of rights to pieces of work and objects of allied rights, licensing agreements for the use of pieces of work and objects of allied rights; the registration of mass media; 4) issuing licenses, certificates or other permits or registration documents, including: a permit to use surface water resources; a permit to use wildlife; ecological permits and the special use of nature; felling and forest permits; permits to place outdoor (visual) advertisements; permits to use the radio-frequency spectrum; permits to television and radio broadcasting companies to use the radio-frequency spectrum; permits for vehicles to transit the Republic of Kazakhstan; the right to use navigable water ways; 5) 6) 7) 8) 9) registering individuals at their place of residence in the Republic of Kazakhstan; registering civil acts; concluding notary acts; guardianship and wardship; transport and communications;
10) regulating and supervising energy and mineral resources; 11) performing foreign political activities; 12) other authorised state bodies determined by the Government of the Republic of Kazakhstan. Article 583. Obligations of the Authorised State Bodies to cooperate with the Bodies of the Tax Service 1. The authorised state bodies responsible for the state registration, re-registration and liquidation of legal entities; the record of registration, re-registration and de-registration of structural subdivisions should present information electronically within three working days from the registration, reregistration or liquidation of a legal entity, record of registration, re-registration or de-registration of a structural subdivision to a body of the tax service, bank or organisation performing certain
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activities on the registration, re-registration or liquidation of the legal entity, record of registration, re-registration or de-registration of the structural subdivision. 2. The authorised bodies issuing licences, certificates or other types of permits or registration documents should present information to the bodies of the tax service at their location on taxpayers that have received licences, certificates or other permits or registration documents (or whose licences, certificates or other permits or registration have been revoked or terminated), on objects of taxation (collection) by other obligatory payments to the budget in accordance with the procedure and within the deadline established by section 19 of this Code, and in the format established by the authorised body. The authorised bodies recording and (or) registering objects of taxation and (or) objects relating to taxation should present information on taxpayers possessing objects of taxation and (or) objects relating to taxation, and also on objects of taxation and (or) objects relating to taxation to the bodies of the tax service in accordance with the procedure, within the deadline and in the format established by the authorised body. The authorised bodies responsible for collecting other obligatory payments to the budget, creating a record and (or) registering objects of taxation and objects relating to taxation shall be obliged to indicate an identification number in any information provided, except for individuals using highly protected nature reserves for scientific, ecological, tourist, recreational and limited commercial purposes. The authorised body registering the arrival (departure) of foreign nationals shall, no later than 10 working days from the registration of their arrival (departure), present information to the body of the tax service on the arrival of foreign nationals, indicating the purpose, place and length of their stay, in accordance with the procedure established by the authorised body. The authorised state body for the regulation and control of power engineering and mineral resources should file information to the tax body at its location on the participants and parameters of transactions in relation to which tax obligations arose in accordance with article 197 of this Code, including information a non-resident tax agent, within 10 working days from the date sale and purchase transactions are concluded for shares or participation interest, in the format established by the authorised body. The authorised state body for foreign economic political activity should file documents with the tax body at the location of a diplomatic or equivalent representation of a foreign country accredited in the Republic of Kazakhstan confirming the accreditation and location of the diplomatic or equivalent representation, within 10 working days from the accreditation date. Information on taxpayers, objects of taxation (objects subject to other obligatory payments to the budget) and (or) objects relating to taxation shall be filed electronically using software to be used in the automated relations of the bodies of the tax service and authorised state bodies within 10 working days in accordance with the procedure and in the formats established by the authorised body. If the authorised state bodies have filed information on taxpayers, objects of taxation (objects subject to other obligatory payments to the budget) and (or) objects relating to taxation electronically, the authorised state bodies shall not have to file information in hard copy.
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Chapter 82. Tax audits

Article 584. Acceptance of Tax Forms 1. Tax forms, except for tax registers, shall be filed with the bodies of the tax service within the deadline established by this Code. The date for filing tax forms with the bodies of the tax service, except for tax registers, depending on the filing method, shall be: 1) personally the date the bodies of the tax service accept tax reporting and (or) application; 370
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by registered mail: for tax reporting a note confirming receipt from a mail or other communication organisation; for a tax application the date of receipt by the bodies of the tax service;
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electronically the date of receipt by the central tax reporting receipt and processing hub of the bodies of the tax service shown in a notification sent in accordance with the procedure established by point 4 of this article.
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Tax reporting in hard copy given to a mail organisation or other communication organisation up to midnight of the final day the period established by this Code for filing tax reporting shall be considered as filed within the deadline provided the mail or other communication organisation has noted the time and date of receipt. Electronic tax reporting filed with the bodies of the tax service electronically by no later than midnight on the final day of the period established by this Code for filing tax reporting shall be considered as filed within the deadline.
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When tax reporting is filed electronically, the bodies of the tax service should, within two working days, send the taxpayer electronic notification of the system receipt or otherwise of tax reporting. Tax forms, except for tax registers, shall be considered as not filed with the bodies of the tax service, if: 1) they do not correspond to tax forms established by the authorised body in accordance with this Code; or the code of the body of the tax service has not been indicated or indicated incorrectly; or an identification number has not been indicated or indicated incorrectly; or the tax period has not been indicated or indicated incorrectly; or the type of tax reporting has not been indicated; or the requirements of this Code regarding the signature and certification of tax reporting have been breached; or the structure of the electronic format established by the authorised body has been breached.
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Article 585. Cameral Review 1. A cameral review shall be a type of control conducted by the bodies of the tax service to study and analyse tax reporting filed by a taxpayer (tax agent), information from the authorised state bodies, and other documents and information on taxpayer activities. A cameral review shall be an integral part of a risk management system. 2. The aim of a cameral review shall be to provide a taxpayer with the possibility to correct errors in tax reporting discovered by the tax bodies after a cameral review.
Article 586. Procedure and Deadline for conducting a Cameral Review 1. A cameral review shall be conducted by comparing tax reporting data available with the bodies of the tax service against information from other state bodies on objects of taxation and (or) objects relating to taxation, and also with data received from various sources on the taxpayers activities. A cameral review shall be conducted during the statute of limitation, taking into account the provisions established by article 46 of this Code.
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Article 587. Results of a Cameral Review 1. Notification of breaches discovered shall be drawn up if the state body discovers breaches after a cameral review has been completed, and sent to the taxpayer together with a description of the breaches discovered. Taxpayers (tax agents) shall execute notification on the elimination of breaches discovered after a cameral review has been completed within 30 working days from the date it is served (received). If a taxpayer (tax agent) agrees with the breaches referred to in notification, it shall file tax reporting with the bodies of the tax service for the period for which the breaches were discovered. If a taxpayer does not agree with the breaches referred to in notification, the taxpayer shall provide the bodies of the tax service with an explanation of the breaches in hard copy or electronically. In this respect, a taxpayer shall be entitled, in addition to the explanation referred to in this point, to file documents with the bodies of the tax service confirming the accuracy of data recorded in tax reporting. 3. A failure to execute notification to eliminate breaches discovered during a cameral review within the established deadline shall result in the suspension of expense operations on a taxpayers bank accounts in accordance with article 611 of this Code. After conducting a cameral review in accordance with point 7 of article 43 of this Code a tax body shall compile a conclusion in the format established by the authorised body. In this respect, the date of completion of a cameral review shall be the date the conclusion referred to in this point is compiled.
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CHAPTER 83. RECORD OF THE FULFILMENT OF TAX OBLIGATIONS, THE OBLIGATION TO TRANSFER OBLIGATORY PENSION CONTRIBUTIONS AND MAKE SOCIAL CONTRIBUTIONS Article 588. General Provisions 1. A tax body shall record the fulfilment of tax obligations, an obligation to transfer obligatory pension contributions and make social contributions by maintaining a personal account for the taxpayer (tax agent) in question. A tax bodys maintenance of a taxpayer (tax agent) personal account shall involve: opening a personal account; subsequently recording calculated, accrued, reduced, paid, offset and refunded taxes and other obligatory payments to the budget in the personal account, as well as obligatory pension contributions and social contributions; closing a personal account. Personal accounts shall be maintained in accordance with the procedure established by this Code. 3. Calculated and reduced amounts of tax or other obligatory payments to the budget; obligatory pension contributions and social contributions shall be any amount including an increase or reduction of obligations calculated by: a taxpayer (tax agent) in tax reporting; a tax agent with respect to information from the authorised state bodies; authorised state bodies for the reasons stipulated by this Code.
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For the purposes of this chapter, a reduced amount of value added tax shall also mean an amount of value added tax offset that exceeds tax accrued. 4. An accrued amount of tax or other obligatory payment to the budget, obligatory pension contributions and social contributions shall be an amount including an increase or reduction of obligations calculated by a body of the tax service: after a tax audit; after considering a taxpayers (tax agents) appeal to notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against notification. 5. A taxpayers (tax agents) personal account shall be maintained for taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions in accordance with the procedure and in the format established by the authorised body. A taxpayers (tax agents) personal account shall be maintained according to a common budget classification.
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Article 589. Opening and Maintenance of a Taxpayers (Tax Agents) Personal Account 1. A taxpayers (tax agents) personal account shall be opened according to an identification number and maintained at the place where the taxpayer has its record of registration. A personal account shall be opened for a taxpayer (tax agent) at the start of the current year or at the date a tax obligation, an obligation to transfer obligatory pension contributions and make social contributions arise, and should refer to a settlement balance including arrears or overpayments. If a taxpayer (tax agent) has no arrears or overpayments, its settlement balance shall equal zero. An overpayment shall be understood as a positive difference between tax, other obligatory payments to the budget, obligatory pension contributions and social contributions paid (minus credited or refunded amounts) and tax calculated or accrued (minus reduced amounts), and recorded in a personal account for the current year, taking into account the settlement balance from the personal account for the year preceding the current year. The settlement balance in a taxpayers (tax agents) personal account with respect to taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions shall be calculated in accordance with the procedure established by the authorised body. 3. If a personal account was maintained for taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions in the year preceding the current year, then the settlement balance from the personal account for the year preceding the current year shall be carried over to the current years personal account. Calculated, accrued, reduced, paid, credited and refunded amounts shall be recorded in a taxpayers (tax agents) personal account indicating the date they were recorded, the content of actions taken, the name of the document used to record above amounts. A taxpayers (tax agents) personal account shall be maintained in the national currency. If a taxpayer (tax agent) files tax reporting and (or) pays taxes and makes other obligatory payments to the budget in a foreign currency in accordance with the provisions of subsoil use contracts, records to the relevant personal accounts shall be made in the following order: 1) calculated and reduced amounts by using the market exchange rate set at the date tax reporting is filed; amounts paid on the basis of payment documents filed by the authorised state body for budget execution.
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A tax body shall adjust a calculated or reduced amount in a taxpayers (tax agents) personal account by the difference arising in the personal account due to a change in the market currency exchange rate at the date tax reporting is filed and tax or other obligatory payments are paid to the budget. The size of an adjustment shall be determined using the market currency exchange rate set for the payment date. Article 590. Record of calculated and reduced Taxes, Other Obligatory Payments to the Budget, Obligatory Pension Contributions and Social Contributions Calculated and reduced amounts of tax, other obligatory payments to the budget, obligatory pension contributions and social contributions shall be recorded in taxpayers (tax agents) personal accounts based on data from tax reporting and information from the authorised state bodies. Article 591. Record of Accrued Taxes and Other Obligatory Payments to the Budget, Obligatory Pension Contributions and Social Contributions 1. Accrued taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions shall be recorded in a taxpayers (tax agents) personal account based on notifications on: the results of a tax audit; accrued taxes and other obligatory payments to the budget, obligatory pension contributions, social contributions for the period from the date liquidation tax reporting is filed until a liquidation tax audit is completed;
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3) the results of the consideration of a taxpayers (tax agents) appeal against a notification of tax results and (or) a decision of a higher body of the tax service issued after the consideration of an appeal against a notification (hereafter in this article any amounts accrued in the notifications referred to in subpoints 1) and 3) of this point accrued amount). 2. An accrued amount shall be recorded in a personal account indicating the date a tax audit is completed and taking into account the appeal deadline in accordance with the procedure established by chapters 93 and 94 of this Code. If an appeal is filed an accrued amount in a personal account shall be recorded at the date and according to the level of the taxpayers (tax agents) appeal, and also taking into account a decision issued on the consideration of the appeal. An accrued amount shall be recorded in a taxpayers (tax agents) personal account taking into account the suspension of the deadline for executing it in the period and within the deadline stipulated for filing and considering an appeal. Methods for enforcing an overdue tax obligation and measures for recovering an accrued amount shall not be applied. If a taxpayer (tax agent) has not yet filed an appeal by the deadline for filing an appeal, a record shall be made in the taxpayers (tax agents) personal account to reinstate an accrued amount for which execution deadlines had previously been suspended. In this respect, the accrued amount should include the amount in the settlement balance of the personal account.
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Article 592. Record of paid, credited and refunded Taxes and Other Obligatory Payments to the Budget, Obligatory Pension Contributions and Social Contributions 1. Paid, credited and refunded taxes and other obligatory payments to the budget, as well as transferred and refunded obligatory pension contributions and social contributions shall be recorded in taxpayers (tax agents) personal accounts on the basis of payment documents received from the authorised state bodies: 1) to pay taxes and make other obligatory payments to the budget, obligatory pension contributions and social contributions, pay late payment interest and fines;
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for credits and refunds of excess paid taxes, other obligatory payments to the budget, late payment interest and fines; for credits and refunds of value added tax offset that exceeds tax accrued; for credits and refunds of incorrectly paid taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions; for tax debts, overdue obligatory pension contributions and social contributions recovered.
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If the deadline for fulfilling a tax obligation to pay tax changes in accordance with the procedure established by article 47 of this Code, the sum of tax for which the deadline to fulfil a tax obligation has been changed shall be recorded in a taxpayers personal account taking into account the new fulfil timetable. A tax body shall not apply methods to ensure the fulfilment of an overdue tax obligation to the period for which the tax payment deadline has been changed, except for the accrual of late payment interest, and forced recovery measures. An amount of tax paid and (or) other obligatory payment to the budget made in a foreign currency in accordance with point 9 of article 31 of this Code shall be recorded in a taxpayers (tax agents) personal account in the national currency on the basis of payment documents filed by the authorised state body for budget execution.
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Article 593. Record of Late Payment Interest and Fines 1. Late payment interest accrued in an amount and according to the procedure established by article 610 of this Code shall be recorded in a taxpayers (tax agents) personal account indicating the period for which it has been accrued. Fines imposed for a tax-related administrative violation, and also for a violation of pension legislation of the Republic of Kazakhstan and obligatory social insurance shall be recorded based on a resolution on the recovery of an administrative sanction. Accrued fines shall be recorded in a taxpayers (tax agents) personal account with respect to the taxes and other obligatory payments to the budget on which violations have been committed. The settlement balance for late payment interest, fines on taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions shall be calculated in accordance with the procedure established by the authorised body. Late payment interest and fines accrued after a tax audit shall be recorded in a taxpayers (tax agents) personal account in accordance with the procedure established by article 591 of this Code.
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Article 594. Reconciliation of Payments of Taxes and Other Obligatory Payments to the Budget, Obligatory Pension Contributions and Social Contributions 1. Within one working day of a taxpayers (tax agents) request, a tax body should reconcile payments of taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions. On the same day that reconciliation is completed, except for those cases established by this article, a taxpayer shall receive a reconciliation act in the format approved by the authorised body. A tax body shall compile two copies of a reconciliation act indicating information from a taxpayers (tax agents) personal account taxpayer (tax agent) data. If a reconciliation act shows no discrepancies between taxpayer (tax agent) and tax body data, the reconciliation act shall be signed by the official of the tax body responsible for recording data and the taxpayer (tax agent). One copy of a reconciliation act shall be served to the taxpayer, and the other shall remain with the tax body. In the event of discrepancies between taxpayer (tax agent) and tax body data, the date, amount and reason for the discrepancies shall be shown. Within three working days from the day 375
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discrepancies are discovered, a tax body and taxpayer (tax agent) shall take measures to eliminate the discrepancies by making the relevant adjustment to data in the taxpayers (tax agents) personal account, if necessary. 5. Once all discrepancies have been eliminated, a tax body shall compile a repeat reconciliation act and serve it to the taxpayer (tax agent) in accordance with the procedure established by this article.
Article 595. Transfer of a Taxpayers (Tax Agents) Personal Account 1. A taxpayers (tax agents) personal account shall be transferred from one tax body to another in the following cases: 1) when the following change: an individuals place of residence (stay); a location; individual entrepreneur, private notary or advocate; a resident legal entity, its structural subdivisions and also the structural subdivisions of nonresident legal entities; a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office; a dependent agent recognised as the permanent establishment of a non-resident in accordance with point 8 of article 191 of this Code; a non-resident that is a tax agent in accordance with point 5 of article 197 of this Code. A taxpayers (tax agents) personal account shall be transferred in accordance with this subpoint for the reasons stipulated by point 1 of article 563 of this Code; 2) 3) when reorganising a legal entity based on information from the authorised state body; when de-registering a legal entitys structural subdivision based on information from the authorised state body.
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A taxpayers (tax agents) personal account shall be transferred from one tax body to another within 10 working days from the day grounds arise for transferring the personal account, as stipulated by point 1 of this article. A reorganised legal entitys personal account shall be transferred to the tax body at the location where the record of registration of the legal successor(s) has been made: 1) 2) after a merger or combination based on an act of transfer; after a division or spin-off based on a division balance sheet.
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A reorganised legal entitys personal account shall be transferred after a division, once a tax audit has been completed and the results of the tax audit have been recorded in the reorganised legal entitys personal account. 4. The personal account of a legal entitys structural subdivision shall be transferred to the tax body at the place where a record of registration has been made for the legal entity, based on information from the authorised body of the state body. A personal account shall be transferred from the start of the current year until the date it is closed in the transferring tax body, and also for the previous five years.
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Within 10 working days from the transfer of a taxpayers (tax agents) personal account, a taxpayers (tax agents) documents related to the fulfilment of a tax obligation, and also obligations to calculate, withhold and transfer obligatory pension contributions and make social contributions shall be transferred in hard copy to the tax body to which the personal account has been transferred.
Article 596. Cancellation of an Obligation to pay a Fine due to the Expiry of the Statute of Limitation for executing a Resolution A fine referred to in a resolution to impose an administrative sanction for a tax-related violation, which cannot be executed due to the statute of limitation established by legislation of the Republic of Kazakhstan for the resolution having expired, shall be written off by a tax body from the personal account of a legal entity, structural subdivision of a legal entity, non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office, a non-resident operating through a dependent agent or that is a tax agent in accordance with point 5 of article 197 of this Code, an individual entrepreneur, private notary or advocate, based on a decision of the tax body. Article 597. Closure of a Taxpayers (Tax Agents) Personal Account A taxpayers (tax agents) personal account shall be closed for the following reasons: 1) legal entity or structural subdivision when a legal entity is withdrawn from the state register of legal entities and the structural subdivision is de-registered. The personal account of this type of taxpayer (tax agent) shall be closed on the basis of information from the authorised state body; 2) individual entrepreneur when an individual entrepreneur is de-registered; The personal account of this type of taxpayer (tax agent) shall be closed on the basis of a tax application for de-registration as an individual entrepreneur; 3) private notary or advocate when a private notary or advocate has been de-registered; The personal account of a private notary or advocate shall be closed on the basis of a tax application for de-registration as a private notary or advocate; 4) a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening a branch or representative office; a non-resident operating through a dependent agent or that is a tax agent for the reasons stipulated by point 1 of article 564 of this Code; individual: after rights to objects of taxation and (or) objects relating to taxation are terminated based on information from the authorised state bodies or a tax application for the de-registration of a record of registration and (or) objects relating to taxation, together with supporting documents; when departing from the Republic of Kazakhstan for a permanent place of residence based on information from the authorised state body in the absence of tax obligations that have not been fulfilled; due to the death of an individual or their declaration as deceased according to a court decision based on information from the authorised state bodies. At the end of the current year, after totalling calculated, accrued, reduced, paid, credited and refunded amounts, the settlement balance shall be transferred to the personal account for the next year.
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Article 598. Procedure for presenting Information on the Absence and (or) Existence of a Tax Debt, Overdue Obligatory Pension Contributions and Social Contributions 1. A taxpayer (tax agent) shall be entitled to file a tax application with the tax body at the place where its record of registration has been made to receive information on the absence and (or) existence of a tax debt, overdue obligatory pension contributions and social contributions. A tax body shall provide information on the absence and (or) existence of a tax debt, overdue pension contributions and social contributions by compiling and issued taxpayers (tax agents) with: 1) a certificate of no outstanding tax liability, overdue pension contributions and social contributions (for the purposes of this article certificate of no outstanding liability) for the state registration of liquidation, the cessation of the activities of a structural subdivision and permanent establishment of a non-resident legal entity, the reorganisation of a legal entity by division, the de-registration of a legal entitys structural subdivision, when a taxpayer departs from the Republic of Kazakhstan for a permanent place of residence; a certificate of no outstanding tax liability, overdue pension contributions and social contributions (for the purposes of this article certificate of (no) outstanding liability) in other cases, except for those established by subpoint 1) of this point.
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A tax body shall compile a certificate of no outstanding liability, certificate of (no) outstanding liability taking into account data from personal accounts opened with the tax bodies at the place where a taxpayers (tax agents) record of registration has been made, for: 1) 2) a legal entity at the legal entitys location; a legal entity with a structural subdivision at the legal entitys location, taking into account the settlement balance of its structural subdivisions personal account; a legal entitys structural subdivision at the location of the structural subdivision; a non-resident legal entitys permanent establishment at the location of the non-resident legal entitys permanent establishment; an individual entrepreneur at the individual entrepreneurs location; an individual at the place of residence or stay, or location of the object of taxation and (or) object relating to taxation.
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A certificate of no outstanding liability, a certificate of (no) outstanding liability shall be certified by the signature of the manager or deputy, and stamp of the tax body that compiled the certificate. A tax body should issue a certificate of no outstanding liability, unless otherwise stipulated by this article, certificate of (no) outstanding liability within the following deadlines: 1) within three working days from the day a tax application is filed to receive a certificate to a legal entity with no structural subdivision, a legal entitys structural subdivision, a non-resident legal entitys permanent establishment, an individual entrepreneur and individual; within five working days from the day a tax application is filed to receive a certificate to a legal entity with a structural subdivision.
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If a taxpayer is liquidated or ceases activities, a tax body shall issue a certificate of no outstanding liability within the following deadline: 1) within five working days from the day the documents referred to in point 12 of article 37 of this Code are filed with a tax body to a legal entity, structural subdivision and permanent establishment of a non-resident legal entity; within three working days from the day the document referred to in point 6 of article 38 of this Code are filed with a tax body to a structural subdivision of a resident legal entity. 378
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If a legal entity is reorganised by a division, a certificate of no outstanding liability shall be issued by a tax body within five working days from the day the document referred to in article 40 of this Code are filed with a tax body. A certificate of (no) outstanding liability shall not be issued if a taxpayer (tax agent) and (or) their structural subdivisions have failed to file tax reporting for the tax period at the date a tax application is filed, except for those cases where the deadline for filing tax reporting has been extended.
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1. Credit and Refund of Taxes, Other Obligatory Payments to the Budget, Late Payment Interest and Fines Article 599. Credit of Excess paid Tax, Charges and Late Payment Interest 1. Excess paid tax, charges and late payment interest shall be credited according to a tax application filed by a taxpayer (tax agent) to credit and refund taxes, other obligatory payments, late payment interest and fines (for the purposes of this article and article 600 of this Code tax credit application), unless otherwise established by this article, and also for other reasons stipulated by this article and article 600 of this Code. Excess tax, charges and late payment interest paid shall be a positive difference between tax, charges and late payment interest paid to the budget (inclusive of amounts credited and refunded) and those calculated and accrued (inclusive of reductions) for the tax period, taking into account payments of the tax, charges and late payment interest for previous tax periods. Excess tax paid shall also be tax paid to be refunded to a non-resident taxpayer in accordance with article 217 of this Code. 3. The term charge for the purposes of this article and articles 600 and 602 of this Code shall be understood as the charge for the use of land plots, surface level water resources, environmental emissions, the use of the radio-frequency spectrum, the provision of long-distance and (or) international telephony, and cellular communication. Excess tax, charges and late payment interest paid shall be credited in the national currency by the tax body at which a taxpayer receives the excess in their personal account. Excess tax, charges and late payment interest paid shall not be credited against the tax debt of a different taxpayer, except for those cases stipulated by points 13-16 of this article. Excess excise duty paid on excisable goods subject to inventory control stamps to repay a tax debt for this and other taxes or charges shall not be credited except for those cases when a taxpayer ceases production of these goods. If the deadline for filing tax reporting has been extended, any excess amounts paid shall not be credited until the tax reporting is filed. The deadline for making a credit shall be 10 working days: in relation to a tax application for a credit from the day the application is filed with a tax body; without an application from the day an excess amount is generated in a personal account. 9. If a tax body misses the deadline for making a credit against a tax credit application for an excess amount of tax or charge paid, the tax body shall pay late payment interest to the taxpayer for each day the credit remains unpaid. Late payment interest shall be accrued at 2.5 times the official rate of refinancing set by the National Bank of the Republic of Kazakhstan for each day of delay, beginning from the day following the credit deadline, including the day the credit is made.
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10. Late payment interest accrued in favour of a taxpayer shall be transferred to the taxpayers bank account indicated in a tax credit application on the day excess tax and charges paid are credited against budget revenue according to the relevant budget classification code.
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11. Excess tax and charges paid shall be credited against tax debts in the following order: 1) without a taxpayer application to repay: late payment interest on a particular tax or charge; a fine on a particular tax or charge; 2) according to a tax credit application to repay: arrears on a particular tax or charge referred to by a taxpayer in a tax credit application; late payment interest on a particular tax or charge referred to by a taxpayer in a tax credit application; a fine on a particular tax or charge referred to by a taxpayer in a tax credit application; future payments of a particular tax or charge referred to by a taxpayer in a tax credit application, unless otherwise established by points 13 and 15 of this article. 12. Excess late payment interest paid to the budget shall be credited in the following order: 1) without a taxpayer application to repay: arrears for a particular tax or charge; fines for a particular tax or charge; 2) according to a tax credit application to repay: arrears on a particular tax or charge referred to by a taxpayer in a tax credit application; late payment interest on a particular tax or charge referred to by a taxpayer in a tax credit application; a fine on a particular tax or charge referred to by a taxpayer in a tax credit application; future payments of a particular tax or charge referred to by a taxpayer in a tax credit application, unless otherwise established by points 14 and 16 of this article. 13. Based on a tax credit application, excess tax or charges paid by a legal entity after a credit has been made in accordance with the procedure established by point 11 of this article shall be credited against: 1) 2) 3) 4) a structural subdivisions arrears with respect to a particular tax or charge; a structural subdivisions late payment interest with respect to a particular tax or charge; a structural subdivisions fine with respect to a particular tax or charge; a structural subdivisions arrears with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a structural subdivisions late payment interest with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a structural subdivisions fine with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application.
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14. Based on a tax credit application, excess late payment interest paid by a legal entity after a credit has been made in accordance with the procedure established by point 12 of this article shall be credited against:
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a structural subdivisions arrears with respect to a particular tax or charge; a structural subdivisions late payment interest with respect to a particular tax or charge; a structural subdivisions fine with respect to a particular tax or charge; a structural subdivisions arrears with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a structural subdivisions late payment interest with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a structural subdivisions fine with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application.
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15. Based on a tax credit application, excess tax or charges paid by a legal entitys structural subdivision after a credit has been made in accordance with the procedure established by point 11 of this article shall be credited against: 1) 2) 3) 4) a legal entitys arrears with respect to a particular tax or charge; a legal entitys late payment interest with respect to a particular tax or charge; a legal entitys fine with respect to a particular tax or charge; a legal entitys arrears with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a legal entitys late payment interest with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a legal entitys fine with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application.
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16. Based on a tax credit application, excess late payment interest paid by a legal entitys structural subdivision after a credit has been made in accordance with the procedure established by point 12 of this article shall be credited against: 1) 2) 3) 4) a legal entitys arrears with respect to a particular tax or charge; a legal entitys late payment interest with respect to a particular tax or charge; a legal entitys fine with respect to a particular tax or charge; a legal entitys arrears with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a legal entitys late payment interest with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application; a legal entitys fine with respect to a particular tax or charge that a taxpayer has referred to in a tax credit application.
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Article 600. Credit of Value Added Tax offset that exceeds accrued Tax An amount of value added tax offset that exceeds tax accrued shall be credited by a tax body at the location of a payer of value added tax in accordance with the procedure established by article 599 of this Code to credit excess tax, charges and late payment interest paid.
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Article 601. Credit and Refund of incorrectly Paid Tax and Other Obligatory Payments to the Budget 1. Incorrectly paid tax and other obligatory payments to the budget shall be credited and refunded with respect to: 1) a tax application filed by a taxpayer (tax agent) to credit and refund taxes, other obligatory payments to the budget, late payment interest and fines (for the purposes of this article tax application for incorrect amounts); an application filed by banks or organisations performing certain banking operations (for the purposes of this article bank application); a protocol drawn up by a body of the tax service on the reasons for an incorrectly paid amount of tax or other obligatory payment to the budget (for the purposes of this article protocol on errors), should an error have been discovered.
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Incorrectly paid taxes or other obligatory payments to the budget, for the reasons referred to in: 1) in subpoints 1) and 2) of point 1 of this article shall be credited or refunded within 10 working days of the date a tax application for incorrect amounts or bank application are filed; in subpoint 3) of point 1 of this article shall be credited or refunded within 30 calendar days from the date an incorrect payment of tax, other obligatory payment to the budget, fine or late payment interest are discovered.
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A tax application for incorrect amounts or a bank application shall be filed with the body of the tax service to which the tax or other obligatory payment to the budget were incorrectly paid. An incorrectly paid amount of tax or other obligatory payment to the budget shall be any amount where the following errors occurred: 1) in a payment document: the taxpayers (tax agents) identification number was indicated incorrectly; the tax bodys identification number was indicated incorrectly; the text description of the payment does not correspond go the payment code and (or) the revenue budget classification code; 2) a bank or organisation performing certain banking operations executes a taxpayers (tax agents) payment document incorrectly; payment has been made to a tax body where the taxpayer sender of cash has not made a record of registration; the taxpayer sender of cash is not a payer of the tax or other obligatory payment to the budget in question.
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If a tax body confirms the errors listed in point 4 of this article, it shall: 1) credit the incorrectly paid amount to the appropriate budget classification code and (or) tax body; make a refund to the taxpayers bank account.
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If a bank or organisation performing certain banking operations exercises a taxpayers (tax agents) payment document incorrectly, which leads to a repeat transfer of tax or other obligatory payment to the budget under the same payment document, a tax body, at the banks request, shall refund the incorrectly paid amount after the error has been confirmed.
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If a tax body does not confirm the errors listed in point 4 of this article, the tax body at question, for the reasons stipulated by subpoints 1) and 2) of point 1 of this article, shall send written confirmation of its failure to confirm errors to the taxpayer. If a taxpayer (tax agent) indicates an incorrect identification number in a payment document, a tax body, based on a tax application for incorrect amounts, shall refund the incorrectly paid amount to the taxpayer to its bank account as indicated in the payment document.
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Article 602. Refund of Excess paid Tax, Charges or Late Payment Interest 1. Excess paid tax, charges or late payment interest shall be refunded according to a tax application filed by a taxpayer (tax agent) to credit and refund taxes, other obligatory payments to the budget, late payment interest and fines (for the purposes of this article refund application), unless otherwise established by this article. Excess paid tax, charges or late payment interest shall be refunded by the tax body where the taxpayers personal accounts with the respect to the tax, charges or late payment interest in question are maintained. Excess paid tax, charges or late payment interest shall be refunded within 15 working days from the day a refund application is filed, unless otherwise established by this Code. Excess paid tax, charges or late payment interest shall be refunded once a credit stipulated by articles 599 and 600 of this Code has been made. Excess paid tax, charges or late payment interest shall be refunded in the national currency to a taxpayers (tax agents) bank account if a tax body has issued an opinion on no outstanding liability in the format established by the authorised body. If a taxpayer is a legal entity, excess paid tax, charges or late payment interest shall be refunded to a bank account if its structural subdivisions have no outstanding debt. Excess excise duty paid on excisable goods subject to inventory control stamps shall not be refunded, except for those cases where a taxpayer ceases producing the goods in question. If a tax body misses the deadline for refunding excess tax or charge paid, it shall pay late payment interest to the taxpayer for each day the refund remains unpaid. Late payment interest shall be accrued at 2.5 times the official rate of refinancing set by the National Bank of the Republic of Kazakhstan for each day of delay, beginning from the day following the refund deadline, including the day the refund is made. Late payment interest accrued in favour of a taxpayer shall be transferred to the taxpayers bank account indicated in a refund application on the day excess tax and charges paid are refunded from budget revenue according to the relevant budget classification code.
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Article 603. Refund of offset Value Added Tax that exceeds accrued Tax 1. Value added tax offset that exceeds tax accrued (for the purposes of this article excess value added tax) shall be refunded at the request of a payer of value added tax to refund excess value added tax as referred to in a value added tax declaration, in accordance with articles 273 and 274 of this Code after the credit stipulated by article 599 of this Code has been made, provided that the conditions stipulated by this article have been met. Excess value added tax to be refunded in accordance with articles 273 and 274 of this Code should not exceed the overpayment in a payer of value added taxs personal account at the date a tax body compiles a conclusion to refund excess value added tax and at the end of the tax period for which a taxpayer files a declaration requesting a refund of excess value added tax less value added tax payable to the budget and recorded in declarations for the subsequent tax periods. Excess value added tax shall be refunded according to the location of a payer of value added tax to its bank account within the deadline stipulated by this Code for a refund of excess value added tax.
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If a tax body misses the deadline for refunding excess value added tax, a tax body shall pay late payment interest on the excess to the taxpayer for each day the refund remains unpaid. Late payment interest shall be accrued at 2.5 times the official rate of refinancing set by the National Bank of the Republic of Kazakhstan for each day of delay, beginning from the day following the refund deadline, including the day the refund is made. Late payment interest accrued in favour of a taxpayer shall be transferred to the taxpayers bank account on the day excess value added tax is refunded from budget revenue according to the relevant budget classification code.
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Article 604. Refund of Value Added Tax for Other Reasons 1. The following value added tax shall be refunded from the budget for the reasons stipulated by the special part of this Code: 1) 2) 2. paid on goods, work and services purchased using a grant; paid by diplomatic or equivalent representations accredited in the Republic of Kazakhstan.
The tax body at the grant beneficiarys location shall refund value added tax refundable to the grant recipients its bank account after making credits in accordance with article 599 of this Code before the refund deadline established by article 275 of this Code. A tax body shall refund value added tax refundable to diplomatic or equivalent representations accredited in the Republic of Kazakhstan to the representations bank accounts before the refund deadline established by article 276 of this Code.
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Article 605. Refund of Fines paid 1. A fine that has been cancelled or where the amount has been altered shall be refunded based on a tax application to credit or refund taxes, other obligatory payments, late payment interest or fines (for the purposes of this article application to refund a fine), which should append the following documents: 1) 2) 3) a resolution on the imposition of an administrative sanction; a document confirming the payment of a fine; an act from a court or higher body (official) on a change to a fine or the cancellation of a resolution on the imposition of an administrative sanction that was the basis for an unlawful fine; other documents confirming the unlawful imposition of a fine.
4) 2.
A taxpayer shall file an application to refund a fine with the tax body at the payment location within one year from day a fine is credited to the budget, whereas for a resolution on the imposition of a fine for a tax-related violation within five years. A tax body shall refund a fine paid within 30 calendar days from the date a taxpayer (tax agent) files an application to refund a fine. An amount paid that has been received to budget classification codes recording fines according to legislation of the Republic of Kazakhstan on administrative violations shall be refunded by a tax body within 30 calendar days from the date a taxpayer (tax agent) files an application to refund a fine, which should append the following: 1) 2) a document confirming payment of the amount in question; a document from the body responsible for recording administrative violations and the persons committing them confirming that a person has not been subject to administrative prosecution in the context of an application received to refund a fine.
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Article 606. Refund of Other Obligatory Payments to the Budget made Other obligatory payments to the budget shall be refunded for reasons not stipulated by articles 601-602 of this Code in accordance with the procedure and principles established by the special part of this Code.
Chapter 84. Notification of the fulfilment of a tax obligation, obligations to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions
Article 607. General Provisions 1. Notification shall be recognised as correspondence sent by a body of the tax service to a taxpayer (tax agent) in hard copy or, with the taxpayers (tax agents) consent, electronically, on the need for the latter to fulfil a tax obligation, obligations to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions. The format of notifications shall be established by the authorised body. Types of notification shall be limited to the following, and shall be sent to a taxpayer (tax agent) within the following deadlines on: 1) taxes calculated by a tax body at accordance with point 2 of article 32 of this Code within 10 working days from the day of calculation; the results of tax audit within five working days from the day an act of tax audit is served to a taxpayer, except for the case established by point 4 of article 638 of this Code; accrued taxes and other obligatory payments to the budget, obligatory pension contributions, social contributions for the period starting from the date liquidation tax reporting is filed until the date a liquidation tax audit is completed within five working days from the date an act of liquidation tax audit is served to a taxpayer (tax agent); a failure to file tax reporting within the deadline established by tax legislation of the Republic of Kazakhstan within 10 working days from the filing deadline established by this Code; repayment of a tax debt within five working days before methods stipulated by subpoints 2)-4) of point 1 of article 609 of this Code are applied to ensure the fulfilment of an overdue tax obligation, along with enforcement measures; the recovery of cash in debtors bank accounts within 20 working days before recovery; the elimination of violations discovered by the bodies of the tax services after a cameral review within 10 working days from the day violations are discovered in tax reporting; the results of the consideration of a taxpayers (tax agents) appeal against a notification of tax audit results and (or) a decision of a higher body of the tax service issued following consideration of an appeal against a notification within five working days from the date an appeal decision is taken; the elimination of violations of tax legislation of the Republic of Kazakhstan within five working days from the date they are discovered;
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10) the confirmation of a taxpayers location (absence) within three working days from the date officials of the bodies of the tax service compile an act of tax investigation. 3. Notification should include: 1) 2) an identification number; the surname, name, patronymic (if applicable) or full name of the tax taxpayer; 385
3) 4) 5)
the name of the body of the tax service; the date of notification; the value of a tax obligation and (or) obligations to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions in those cases established by this Code and (or) legislative acts of the Republic of Kazakhstan; a request to fulfil a tax obligation and (or) obligations to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions; the grounds for sending notification; the appeal procedure.
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Article 608. Procedure for serving and executing Notification 1. Notification should be served to a taxpayer (tax agent) personally in return for a signature or by other means guaranteeing proof of dispatch and receipt. In this respect, notification sent using one of the following means shall be considered as served to a taxpayer (tax agent) in the following cases: 1) by registered mail from the date taxpayer (tax agent) makes the relevant note in notification from the mail or other communication agency; electronically within five working days from the date of dispatch of the notification by the body of the tax service. This method shall extend to taxpayers registered as electronic taxpayers in accordance with the procedure established by article 572 of this Code.
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If a tax body sends the notifications listed in subpoints 2)-4), 7)-9) of point 2 of article 607 of this Code, a tax obligation and (or) obligation to calculate, withhold and transfer obligatory pension contributions; calculate and make social contributions shall be fulfilled within 30 working days from the day following the date notification is served to the taxpayer (tax agent). A taxpayer (tax agent) shall execute the notification stipulated by subpoint 10) of point 2 of article 607 of this Code within 20 working days from the date notification is sent.
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Chapter 85. Methods of ensuring the fulfilment of overdue tax obligations

Article 609. Methods of ensuring the fulfilment of Overdue Tax Obligations 1. Fulfil of a taxpayers (tax agents) overdue tax obligation shall be guaranteed by: 1) 2) accruing late payment interest on unpaid taxes and other obligatory payments to the budget; suspending expense operations on the bank accounts (except for correspondent accounts) of a taxpayer (tax agent) if they are a legal entity, structural subdivision of a legal entity, non-resident operating in the Republic of Kazakhstan through a permanent establishment, individual entrepreneur, private notary and advocate; suspending the expense operations of the cash department of a taxpayer (tax agent) if they are a legal entity, structural subdivision of a legal entity, non-resident operating in the Republic of Kazakhstan through a permanent establishment, individual entrepreneur, private notary and advocate; restricting the disposal of the property of a taxpayer (tax agent) if they are a legal entity, structural subdivision of a legal entity, non-resident operating in the Republic of Kazakhstan through a permanent establishment, individual entrepreneur, private notary and advocate.
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The methods of ensuring the fulfilment of overdue tax obligations as referred to in subpoints 2)-4) of point 1 of this article shall be applied in the periods established by articles 611-613 of this Code. Notification shall be sent to a taxpayer (tax agent) in accordance with chapter 84 of this Code before the methods of ensuring the fulfilment of overdue tax obligations referred to in subpoints 2)4) of point 1 of this article are applied. The methods of ensuring the fulfilment of overdue tax obligations, except for the method referred to in subpoint 1) of point 1 of this article shall not apply to taxpayers (tax agents) with a tax debt of less than three times the monthly calculation index set by the law on the state budget for the relevant financial year. If a notification of tax audit results and (or) the decision of a higher body of the tax service on the consideration of an appeal against notification are appealed, the methods of ensuring the fulfilment of overdue tax obligations, except for the method referred to in subpoint 4) of point 1 of this article, shall be suspended until a decision is taken on consideration of the appeal. If a taxpayer (tax agent) fails to pay fines the methods referred to in subpoints 2)-4) of point 1 of this article for ensuring the fulfilment of overdue tax obligations shall be applied without notifying the taxpayer (tax agent) based on a court ruling for the forced recovery of fines. If a legal entitys structural subdivision has no bank account or it has either no or insufficient funds in its bank accounts or cash department to repay a tax debt, a tax body shall apply the methods referred to in subpoints 2)-4) of point 1 of this article for ensuring the fulfilment of overdue tax obligations against the legal entity taxpayer that created the structural subdivision in question. For the purposes of this chapter state institutions accounts opened with the authorised state body for budget execution shall be the equivalent of bank accounts, while the authorised state body for budget execution shall be recognised as the equivalent of an organisation performing certain banking operations.
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Article 610. Late Payment Interest for Overdue Taxes and Other Obligatory Payments to the Budget 1. Late payment interest shall be recognised as the amount established by point 3 of this article and accrued on overdue taxes and other obligatory payments to the budget. Late payment interest shall be accrued and paid irrespective of whether other methods for ensuring the fulfilment of an overdue tax obligation and enforcement measures have been applied, as well as other sanctions for violating tax legislation of the Republic of Kazakhstan. Late payment interest shall be accrued for each day a tax obligation remains overdue, beginning from the day following the deadline for paying tax and making other obligatory payments to the budget, at the rate of 2.5 times the official rate of refinancing set by the National Bank of the Republic of Kazakhstan for each day the tax obligation remains overdue. Late payment interest shall be accrued on banks or organisations performing certain banking operations for a failure to observe the sequence for withdrawing taxes and other obligatory payments to the budget, late payment interest and fines from bank accounts; a failure to transfer (credit) them to the budget; a late transfer of amounts withdrawn from taxpayers bank accounts and paid in cash to banks or organisations performing certain banking operations, against the payment of taxes and other obligatory payments to the budget, late payment interest, fines and also income tax placed in an escrow bank account, and accrued bank interest to the budget. If the deadline for fulfilling a tax obligation to pay taxes (except for taxes withheld at the source of payment, and excise duty) is changed, the deadline for filing tax reporting is extended, and also for filing additional tax reporting, late payment interest shall be accrued on arrears beginning from the day following the tax payment deadline established by the special part of this Code. Late payment interest shall not be accrued on the arrears of a taxpayer recognised as bankrupt, from the moment a court decision is adopted or in relation to whom a decision has been taken for enforced liquidation, or a ruling passed to apply rehabilitation procedures, from the date such a decision or ruling come into force. 387
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Late payment interest shall not be accrued to the creditors of compulsorily liquidated banks for a late repayment of arrears, from the moment a decision comes into force for the compulsory liquidation of the bank, if the sole reason for the arrears being generated was the liquidation of their serving bank. Late payment interest shall not be accrued if a court decision has come into force on the compulsory issue of declared shares for an amount of arrears, which are repaid, by court decision, through a compulsory issue of declared shares, from the day a court claim is filed with a court for the compulsory issue of declared shares and until their placement has been completed. Late payment interest shall not be accrued for an amount of arrears from the date a court decision enters into force to recognise an individual as missing, until the decision is annulled.
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10. Late payment interest shall not be accrued on late payment interest and fines. 11. Late payment interest shall not be accrued on arrears repaid by crediting excess tax and (or) charges paid, from the date of the payment document to make the credit. 12. Late payment interest shall not be credited when crediting taxes and other obligatory payments to the budget: 1) from the day banks or organisations performing certain banking operations withdraw case from a taxpayers (tax agents) bank account; from the day a payment is made by a taxpayer through automated teller machines or other electronic devices; from the day a taxpayer (tax agent) pays the required amounts to banks or organisations performing certain banking operations or the authorised state bodies.
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13. Late payment interest shall not be accrued on arrears in proportion to excess tax and (or) charges paid if the deadline for making a credit established by point 8 of article 599 of this Code has been missed, provided the payment of excess tax and (or) charge has been confirmed. Article 611. Suspension of Expense Operations on a Taxpayers (Tax Agents) Bank Accounts 1. The expense operations on the bank accounts (except for correspondent accounts) of the taxpayer (tax agent) referred to in subpoint 2) of point 1 of article 609 of this Code shall be suspended in accordance with the procedure established by legislative acts of the Republic of Kazakhstan, in the following cases: 1) the taxpayer (tax agent) files to file tax reporting within the deadline established by this Code for 10 working days from the date notification stipulated by subpoint 4) of point 2 of article 607 of this Code is filed; the taxpayer fails to file an application to make a record of registration for value added tax for 30 working days from the date notification stipulated by subpoint 9) of point 2 of article 607 of this Code is served; a tax debt is not repaid for five working days from the date notification stipulated by subpoint 5) of point 2 of article 607 of this Code is filed; official of a body of the tax services have not been permitted to conduct a tax audit or investigate objects of taxation and (or) objects relating to taxation, except for when they violate the procedure established by this Code for conducting a tax audit for five working days from the day the official are not permitted to conduct a tax audit; a mail or other communication organisation returns notification sent due to a taxpayers (tax agents) absence from their location for five working days from the return date; the absence of a taxpayer (tax agent) at a particular location has been established based on an act of tax investigation compiled by the bodies of the tax service in accordance with the 388
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procedure established by article 558 of this Code for five working days from the day the above has been established; 7) notification on the elimination of violations discovered during a cameral review five working days after the deadline referred to in point 2 of article 587 of this Code has passed. The suspension of expense operations on bank accounts shall extend to all of a taxpayers (tax agents) expenses operations, except for: 1) operations to repay a tax debt, overdue obligatory pension contributions and social contributions by the taxpayer itself; the recovery of cash: with respect to court orders stipulating claims be settled to compensate for harm caused to life and health, and also demands to recover alimony; with respect to court orders stipulating the recovery of cash to pay severance benefits and employment compensation to individuals working under employment agreements; to pay copyright, clients obligations to transfer obligatory pension contributions to pension savings funds and make social contributions to the State Social Insurance Fund; to repay a tax debt, and also with respect to court orders for recovering payment to budget revenue. 3. A tax body shall issue instructions to suspend expense operations on a taxpayers (tax agents) bank accounts in the format established by the authorised body together with the National Bank of the Republic of Kazakhstan, and which shall enter into force from the day a bank or organisation performing certain banking operations receive it. A tax body instruction to suspend expense operations on a taxpayers (tax agents) bank accounts shall be subject to unconditional execution by banks or organisations performing certain bank operations. An instruction to suspend expense operations on bank accounts shall be annulled by the tax body that issued the instruction to suspend expense operations within one working days from the day following the day the reasons for the suspension of expenses operations on bank accounts have been eliminated. If taxpayers (tax agents) bank account is closed in accordance with legislation of the Republic of Kazakhstan, a bank or organisation performing certain banking operations shall return an order to suspend expense operations on the account to the appropriate tax body together with notification on the closure of the taxpayers (tax agents) bank account.
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Article 612. Suspension of Expense Operations in a Taxpayers (Tax Agents) Cash Department 1. If a tax debt has not been repaid within five working days of the day notification is received to repay the tax debt, a tax body shall suspend expense operations in the cash department of the taxpayer (tax agent) referred to in subpoint 3) of point 1 of article 609 of this Code, against its tax debt. The suspension of expenses operations in a taxpayers (tax agents) cash department shall extend to all cash expense operations in the cash department, except for operations to deposit cash in a bank or organisation performing certain banking operations, for their subsequent transfer to repay a tax debt, overdue obligatory pension contributions and social contributions. An instruction to suspend expense operations in a taxpayers (tax agents) cash department shall be compiled in duplicate in the format established by the authorised body. One of the copies shall be served to a taxpayer (tax agent) in return for a signature or by other means confirming dispatch and receipt. 2. A tax body instruction to suspend expense operation in a cash department shall be considered binding for a taxpayer (tax agent). 389
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A taxpayer (tax agent) shall be liable for violating the requirements of this article in accordance with legislation of the Republic of Kazakhstan. A tax body instruction to suspend expense operations in a cash department shall be annulled by the tax body within one working day of a taxpayers (tax agents) repayment of a tax debt.
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Article 613. Restriction in the Disposal of a Taxpayers (Tax Agents) Property 1. If a tax debt is not repaid within 10 working days of receipt of notification to repay a tax debt, and also if a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against notification are being appealed, a tax body shall restrict the disposal of the property of the taxpayer (tax agent) referred to in subpoint 4) of point 1 of article 608 of this Code. In this respect, if a taxpayer (tax agent), except for major taxpayers subject to monitoring, appeals a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against notification, a tax body shall restrict the disposal of the taxpayers (tax agents) property without notification up to the value of disputed taxes, other obligatory payments to the budget and late payment interest in accordance with the procedure established by this article. This restriction shall remain in force until a decision is issued by the body of the tax service considering the taxpayers (tax agents) appeal or a court act comes into force that annul a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against notification. A decision to restrict the disposal of property shall be compiled in the format established by the authorised body, in duplicate, one copy of which shall be served to the taxpayer (tax agent) in return for a signature or by a different method that confirms dispatch and receipt. If a taxpayer (tax agent) refuses to receive notification or its officials are absent from its location, a decision to restrict the disposal of property shall be sent by registered mail within five working days from registration date of a decision, together with notification of the relevant authorised state bodies on the need to register encumbered property rights. 2. A decision to restrict the disposal of a taxpayers (tax agents) property shall be issued in relation to property to which the taxpayer (tax agent) has property rights or the right to commercial management, and also that is on the taxpayers (tax agents) balance sheet. The disposal of a taxpayers (tax agents) property shall be restricted solely in relation to property which, in accordance with legislation of the Republic of Kazakhstan, may be seized. Tax bodies shall be forbidden from seizing a taxpayers (tax agents) property that has been restricted as to its disposal, and which has been transferred to (received from) financial lease or used as collateral, until a lease and (or) collateral agreement expires. A taxpayer (tax agent) shall be forbidden from changing the conditions of an agreement (extending the validity of an agreement, subleasing and (or) repledging) from the day a tax body restricts the disposal of property, and until the agreement is cancelled. 3. A decision to restrict the disposal of property shall be adopted by a tax body based on data available to it in a taxpayers (tax agents) personal account on outstanding tax debts as at the date a decision is made to restrict the distribution of property. An act of inventory of property shall be drawn up to the value of a tax debt, based on a decision to restrict the distribution of property, together with a warning to the taxpayer (tax agent) on liability for violating the conditions of possessing, using and disposing of property. An inventory of restricted property shall be carried out using the book value calculated based on the taxpayers (tax agents) accounting data, or the market value. Market value shall be the value determined in an evaluation report drawn up in accordance with legislation of the Republic of Kazakhstan on evaluation activities.
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An inventory of restrict property shall be formalised by an act compiled in duplicate, in the format established by the authorised body. When compiling an act of inventory, a taxpayer (tax agent) should provide originals or notarised copies of documents confirming ownership rights and (or) rights to the commercial management of the property in question for familiarisation purposes. Copies of documents confirming ownership rights and (or) rights to the commercial management of property shall be attached to an act of inventory. An act of inventory for property shall be signed by the individual who compiled it, and also by an official of the taxpayer (tax agent). One copy of an act of inventory shall be served to the taxpayer (tax agent). A decision to restrict the disposal of property and act of inventory shall be registered with a tax body under one number. An act of inventory shall lose its force at the same time as a decision used as the grounds to restrict the disposal of property is annulled. 5. A taxpayer (tax agent) should ensure the safekeeping and appropriate care of restricted property until the restriction is lifted in accordance with legislation of the Republic of Kazakhstan. A taxpayer (tax agent) shall be liable for unlawful actions in relation to the property in question in accordance with laws of the Republic of Kazakhstan. If the above requirements are not met a taxpayer (tax agent) should refund any costs incurred in preparing restricted property for auction. 6. If a tax debt is not repaid and restricted property is not realised after two auctions have been held, a tax body shall be entitled to subject a taxpayers (tax agents) other property to inventory control taking into account data from the taxpayers (tax agents) personal account on the tax debt as at the date a new act of inventory for property is compiled. The encumbrance of rights to property subject to registration with the authorised state bodies shall be registered in accordance with legislation of the Republic of Kazakhstan. A tax shall annul a decision to restrict the disposal of property within one working day of a taxpayer (tax agent) repaying a tax debt.
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Chapter 86. Measures for the forced recovery of a tax debt

Article 614. Measures for the forced Recovery of a Tax Debt 1. The tax bodies shall apply measures for the forced recovery of the tax debt of a legal entity, structural subdivision of a legal entity, non-resident operating in the Republic of Kazakhstan through a permanent establishment, individual entrepreneur, private notary or advocate, except for cases where a notification of tax audit results and (or) decision of a higher body of the tax service issued after consideration of an appeal against a notification are being disputed. Before measures for the forced recovery of a tax debt are applied, a taxpayer (tax agent) shall receive notification of the repayment of a tax debt in accordance with chapter 84 of this Code. Forced recovery measures shall not apply to taxpayers (tax agents) with a tax debt that is less than three times the monthly calculation index set by the law on the state budget for the relevant financial year. The forced recovery of a tax debt shall be carried out in the following order: 1) 2) from funds in bank accounts; from debtors accounts;
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from the realisation of restricted property; by way of a compulsory issue of declared shares.
If a taxpayer (tax agent) fails to pay fines the measures of forced recovery referred to in this article shall be applied without notification, based on a court ruling on the forced recovery of fines. If a legal entitys structural subdivision has no bank account or if it has either no or a shortage of funds in its bank accounts and its cash department to repay a tax debt, a tax body shall recover a tax debt by applying forced recovery measures on the legal entity taxpayer that created the structural subdivision. For the purposes of this chapter, state institutions accounts opened in the authorised state body for budget execution shall be the equivalent of bank accounts, while the authorised state body for budget execution shall be the equivalent of an organisation performing certain banking operations.
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Article 615. Recovery of a Tax Debt from Cash in Bank Accounts 1. If a tax debt is not paid or is not paid in full within 15 working days from the day notification on the repayment of a tax debt is served, a tax body shall recover the tax debt from the bank accounts of the taxpayer (tax agent) referred to in point 1 of article 614 of this Code in accordance with the recovery procedure. The provisions of this point shall not extend to bank accounts that are not subject to recovery procedure in accordance with legislative acts of the Republic of Kazakhstan on banks and banking activities, insurance activities, the provision of pensions, securitisation and investment funds. 2. A tax debt shall be recovered from a taxpayers (tax agents) bank accounts based on an encashment order issued by a tax body, except for funds used as collateral for loans issued by a bank or organisation performing certain banking operations, up to the amount of any unreturned principal. An encashment order shall be compiled by a tax body based on data available for a taxpayers (tax agents) personal account on a tax debt as at the date it is compiled. 3. When a bank or organisation performing certain banking operations execute an encashment order issued by a tax body to recover a tax debt from a taxpayers (tax agents) single bank account, the encashment order issued by the tax body for the taxpayers (tax agents) other bank accounts opened in the bank or organisation performing certain banking operations in question shall be returned by the bank or organisation performing certain banking operations to the tax body without execution if the encashment orders were issued by the tax body on the same date, for the same amount and for the same type of tax debt. If a bank or organisation performing certain banking operations have executed an encashment order issued by a tax body in full to recover a tax debt by withdrawing funds from several taxpayer (tax agent) bank accounts for a total amount referred to in the encashment order, encashment orders issued by a tax body for the taxpayers (tax agents) other bank accounts opened in the bank or organisation performing certain banking operations in question shall be returned by the bank or organisation performing certain banking operations to the tax body without execution if the encashment orders were issued by the tax body on the same date, for the same amount and for the same type of tax debt. Encashment order shall be issued in the format established by normative legal acts of the Republic of Kazakhstan and shall contain a reference to the taxpayers (tax agents) bank account from which a tax debt is to be recovered. If a taxpayers (tax agents) bank account contains no tenge funds, a tax debt shall be recovered from bank accounts in a foreign currency based on encashment orders issued by a tax body in tenge. Where a clients funds in a bank or organisation performing certain banking operations are sufficient to meet all claims against the client, an encashment order to recover a tax debt shall be 392
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executed by a bank or organisation performing certain banking operations as a priority and within one operating day following the day it receives an order to do so, up to the amounts available in the bank account. 8. If a taxpayers (tax agents) bank accounts have either no or insufficient funds to meet several claims against a client, the bank or organisation performing certain banking operations shall recover funds from the client to repay its tax debt as cash is paid into the accounts and in accordance with the order of priority established by the Civil Code of the Republic of Kazakhstan. If the taxpayers (tax agents) bank account for which a tax body has issued an encashment order to recover a tax debt has no funds, the bank or organisation performing certain banking operations that accepted the encashment order for execution, when closing the taxpayers (tax agents) bank account in accordance with legislation of the Republic of Kazakhstan, shall return the encashment order to the relevant tax body together with notification on the closure of the taxpayers (tax agents) bank account.
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Article 616. Recovery of a Taxpayers (Tax Agents) Tax Debt from its Debtors Accounts 1. If the taxpayer (tax agent) referred to in point 1 of article 614 of this Code either does not have or has insufficient funds in its bank accounts, or has no bank account, a tax body should recover funds up to the amount due from the bank accounts of third parties with a debt to the taxpayer (tax agent) (hereafter debtors). A taxpayer (tax agent), within 10 working days from the date it receives notification of the repayment of a tax debt, should send a list to the tax body that sent notification of debtors, indicating the amount receivable and, if available, reconciliation acts compiled together with debtors that confirm the value of amounts receivable. If acts of reconciliation are available, a tax body shall issue encashment orders for debtors bank accounts to recover a taxpayers (tax agents) tax debt five days from the day debtors receive notification in accordance with chapter 84 of this Code. If a list of debtors is not presented within the deadline referred to in this point, a tax body shall conduct a tax audit of the taxpayer (tax agent). In this respect, a tax body shall not be entitled to confirm any amount receivable under dispute in court. 3. Based on a list of debtors provided or an act of tax audit confirming the value of an amount receivable, a tax body shall send notification to debtors on the recovery of funds from their bank accounts to repay the taxpayers (tax agents) tax debt, up to the value of the amount receivable. Within 20 working days of receiving notification, together with the relevant taxpayer (tax agent) debtors should file an act of reconciliation as at the date notification is received, with the tax body that sent the notification. If debtors fail to file an act of reconciliation for settlements within the deadline referred to in this point, a tax body shall conduct a tax audit of the debtors in question. In this respect, a tax body shall not be entitled to confirm any amounts receivable being disputed in court. 4. Debtors shall not provide an act of reconciliation for settlements if an act of tax audit confirming an amount receivable and a notification of the recovery of funds from their bank account are available. If a taxpayer (tax agent) repays a tax debt, it shall not provide a list of debtors or act of reconciliation for settlements. An act of reconciliation for settlements between a taxpayer (tax agent) and a debtor should contain the following information: 1) 2) the name of the taxpayer (tax agent) and debtor, their identification numbers; the name of the tax body at which the taxpayer (tax agent) and debtor have their record of registration;
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3) 4) 5) 6)
the details of the taxpayers (tax agents) and debtors bank accounts; the debtors debt to the taxpayer (tax agent); the legal details, stamp and signature of the taxpayer (tax agent) and debtor; the compilation date of the act of reconciliation, which should be no earlier than the date notification on repayment of a tax debt is received.
7.
Based on a debtors act of reconciliation for settlements or act of tax audit confirming an amount receivable, a tax body shall issue encashment orders for the debtors bank accounts to recover a taxpayers (tax agents) tax debt. A bank, organisation performing certain banking operations or taxpayer debtor should execute an encashment order issued by a tax body to recover a taxpayers (tax agents) tax debt in accordance with the requirements established by article 615 of this Code.
8.
Article 617. Recovery through the Realisation of a Taxpayers (Tax Agents) Restricted Property against a Tax Debt In those cases when the taxpayer (tax agent) referred to in point 1 of article 614 of this Code either has no or insufficient funds in its bank accounts or if its debtors have no or insufficient funds in their bank accounts, and (or) if the taxpayer or debtors have no bank account, a tax body shall issue a resolution without its consent to recover a taxpayers (tax agents) restricted property. A resolution to recover a taxpayers (tax agents) restricted property shall be executed in duplicate in the format established by the authorised body. One copy of the resolution together with a copy of a decision to restrict the disposal of property and an act of inventory control for property shall be sent to the authorised state body for property appropriated by the state for specific reasons. Article 618. Procedure for the Realisation of a Taxpayers (Tax Agents) Restricted Property against a Tax Debt Restricted property shall be realised by the authorised state body for property appropriated by the state for specific reasons. The procedure for realising restricted property shall be established by the authorised state body for property appropriated by the state for specific reasons, with the consent of the authorised body. Article 619. Compulsory Issue of the Declared Shares of a Taxpayer (Tax Agent) Joint Stock Company with State Participation in Charter Capital If a taxpayer (tax agent) which is a joint stock company with state participation in charter capital fails to repay a tax debt after all the measures stipulated by subpoints 1)-3) of point 3 of article 614 of this Code have been adopted, the authorised body shall file a court claim for a compulsory issue of declared shares in accordance with the procedure established by legislation of the Republic of Kazakhstan. The deadline for fulfilling tax obligations to pay taxes, make other obligatory payments to the budget, and also obligations to pay late payment interest and fines for the repayment of which a court has issued a decision for a compulsory issue of declared shares, shall be suspended from the day a court decision on a compulsory issue of declared shares comes into force and until placement has been completed. Article 620. Recognition of a Taxpayer (Tax Agent) as Bankrupt 1. If a taxpayer (tax agent) fails to repay a tax debt after all the measures stipulated by article 614 of this Code have been adopted, a tax body shall be entitled to take measures to recognise the taxpayer (tax agent) as bankrupt according to legislative acts of the Republic of Kazakhstan.
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The procedure for liquidating a taxpayer (tax agent) recognised as bankrupt shall be carried out in accordance with legislation of the Republic of Kazakhstan on bankruptcy.
Article 621. Publication of Lists of Taxpayers (Tax Agents) with Tax Debts in the Mass Media 1. The bodies of the tax service shall publish in the mass media a list of taxpayers (tax agents) who have had the following outstanding taxes for over six months: legal entities and their structural subdivisions more than 150 times the monthly calculation index set by the law on the state budget for the relevant financial year; individual entrepreneurs, private notaries and advocates more than 10 times the monthly calculation index set by the law on the state budget for the relevant financial year. In this respect, lists should indicate the surname; name and patronymic (if applicable) or name of the taxpayer (tax agent); type of economic activity; identification number; surname, name and patronymic (if applicable) of the taxpayers (tax agents) manager and the total tax debt. 2. A list of taxpayers (tax agents) placed on the website of the authorised body shall be updated quarterly on or before the 20th of the month following the quarter ended, by including taxpayers (tax agents) that meet the criteria listed in this article, and also by removing taxpayers (tax agents) that have repaid their debt or whose tax obligations have been terminated.
Article 622. Recovery of the Tax Debt of a Taxpayer Individual who is not an Individual Entrepreneur, Private Notary or Advocate 1. If a taxpayer individual who is not an individual entrepreneur, private notary or advocate fails to pay a tax debt or does not pay it in full, a tax body shall send an application for a court order or a writ to recover a tax debt from the property of the taxpayer in question. Applications for a court order or writs to recover a tax debt of an individual taxpayer who is not an individual entrepreneur, private notary or advocate shall be heard in accordance with civil procedural legislation of the Republic of Kazakhstan. The recovery of a tax debt from the property of a taxpayer individual who is not an individual entrepreneur, private notary or advocate shall be carried out by the law enforcement authorities in accordance with the procedure established by legislation of the Republic of Kazakhstan on executive proceedings.
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Chapter 87. Monitoring of major taxpayers

Article 623. General Provisions 1. Major taxpayer monitoring (for the purposes of this chapter monitoring) shall be carried out by analysing the financial and commercial activities of major taxpayers to identify their real taxable base, to control their compliance with tax legislation of the Republic of Kazakhstan and applicable market prices for transfer pricing purposes. The 300 taxpayers with the highest aggregate annual income exclusive of the adjustment stipulated by article 99 of this Code shall be subject to monitoring. Aggregate annual income without adjustment shall be calculated based on data from corporate income tax declarations for the tax period preceding the year a list of major taxpayers subject to monitoring is approved. 3. A list of major taxpayers subject to monitoring shall be approved by the Government of the Republic of Kazakhstan on or before 15 December of the year preceding the year the list in question is to be introduced.
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If at 1 November of the year preceding the year in which a list of major taxpayers subject to monitoring is due to be introduced a taxpayer that meets the requirements established by point 2 of this article is undergoing liquidation, the taxpayer in question shall not be included in the list. An approved list of major taxpayers subject to monitoring shall be introduced into force no earlier than 1 January of the year following the year it was approved. An approved list of major taxpayers subject to monitoring shall be valid for two years from the day it is introduced into force, and shall not be reviewed for that period. 4. If a major taxpayer subject to monitoring is reorganised, its legal successor(s) shall be subject to monitoring until the next list of major taxpayers subject to monitoring is introduced into force. If a major taxpayer subject to monitoring is liquidated, and also from the date a court decision enters into force recognising it as bankrupt, the taxpayer in question shall be recognised as removed from the list of major taxpayers subject to monitoring.
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Article 624. Procedure and Deadline for filing Monitoring Reporting 1. Major taxpayers subject to monitoring shall file monitoring reports in the form of an electronic document encrypted by an electronic digital signature. Monitoring reporting shall incorporate the following, unless otherwise established by this article: 1) 2) 3) 4) a goods, work and services realisation book; a goods, work and services purchase book; an accounting balance sheet; a report on the movement of goods produced and purchased, work performed and services provided; the cost of goods produced, work performed and services provided; a report on the results of financial and commercial activities; a breakdown of accounts receivable and payable.
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5) 6) 7) 3.
The following shall be recognised as reporting for major taxpayers subject to monitoring and performing banking activities, as well as certain banking operations based on a license from the authorised state body for the regulation and control of the financial market and financial organisations and (or) the National Bank of the Republic of Kazakhstan, or in accordance with a legislative act of the Republic of Kazakhstan: 1) 2) 3) 4) 5) a goods, work and services realisation book; a goods, work and services purchase book; an accounting balance sheet; an income and expenses statement; a breakdown of accounts receivable and payable.
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Monitoring reporting for insurance and reinsurance organisations that are major taxpayers subject to monitoring shall include: 1) 2) a report on insurance activities; an accounting balance sheet; 396
3) 5.
an income and expenses statement.
Monitoring reporting for major taxpayers subject to monitoring which are engaged in attracting pension contributions and pension payments, and the investment management of pension assets in accordance with the procedure established by legislation of the Republic of Kazakhstan, shall include: 1) 2) 3) 4) a report on pension assets; a report on pension asset management; an accounting balance sheet; an income and expenses statement.
6.
Major taxpayers subject to monitoring shall file the reporting referred to in points 2-5 of this article quarterly on or before the 15th of the second month following the reporting tax period, in accordance with the procedure and in the formats approved by the authorised body. A monitoring report deadline falling on a non-working day shall be moved to the next working day.
Chapter 88. Risk management system

Article 625. General Provisions 1. A risk management system is based on an assessment of risks and includes measures developed and (or) applied by the bodies of the tax service to identify and prevent risk. Differentiated forms of tax control are performed based on the results of risk assessments. Risk is the probability of a taxpayer (tax agent) failing to fulfil a tax obligation and (or) fulfilling a tax obligation incorrectly, which could cause losses to the state. The objectives of the bodies of the tax service in applying a risk management system are to: 1) 2) 4. concentrate on high-risk areas and ensure the best use of available resources; increase the possibility of discovering tax-related violations.
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A risk management system shall be used to conduct tax control, in particular to select taxpayers (tax agents) for: 1) 2) tax audits; the right to apply the simplified procedure for refunding excess value added tax, subject to the provisions of article 274 of this Code.
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A risk assessment shall be carried out based on risk parameters, the criteria for identifying risks, the criteria for categorising taxpayers in a particular risk category as established by the authorised body. This information shall be considered as confidential. A risk management system may be run using a risk management information system.
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Article 626. Actions of the Bodies of the Tax Service in assessing and managing Risks The bodies of the tax service shall analyse data from tax reporting filed by a taxpayer (tax agent), information from the authorised state bodies, and also other documents and (or) information on taxpayer (tax agent) activities. The bodies of the tax service shall use the results of such analysis to achieve the objectives referred to in article 625 of this Code.
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Chapter 89. Tax Audits

1. Definitions, Types and Forms of Tax Audits Article 627. Definitions and Types of Tax Audits 1. A tax audit shall be an audit performed by the bodies of the tax service to: 1) verify compliance with tax legislation of the Republic of Kazakhstan and other legislation of the Republic of Kazakhstan, control compliance entrusted to the bodies of the tax service; control persons holding documents and information regarding the activities of a taxpayer (tax agent) being audited, so as to receive information on a taxpayer (tax agent) being audited regarding issues relating to the business activities of the taxpayer (tax agent) being audited; receive additional information from a taxpayer (tax agent) that has filed an appeal against a notification of tax audit results and (or) a decision of the higher tax service issued after an appeal against a notification has been considered.
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Where necessary, during a tax audit the bodies of the tax service may: inspect property that is an object of taxation and (or) object relating to taxation, irrespective of its location; carry out a stock take of a taxpayers (tax agents) property (except for residential premises). The following shall be recognised as participating in tax audits: those officials listed in an instruction from the bodies of the tax service and other individuals engaged by the bodies of the tax service to conduct an audit in accordance with this Code; for spot-check audits a taxpayer performing business activities in a particular place indicated in an instruction; for other types of tax audit a taxpayer indicated in an instruction. A specialist with no interest in the outcome of a tax audit may be engaged for an investigation requiring special knowledge and skills or for consultation by the bodies of the tax service during a tax audit. At the written request of an official of a body of the tax service taking part in a tax audit, a specialist engaged for the tax audit shall compile a report to be used during the tax audit. Copies of such written issues and conclusions shall be appended to an act of tax audit, including to the copy of the act of tax audit served to the taxpayer.
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If a body of the tax service engages a specialist in a tax audit, a taxpayer shall be entitled to engage its own specialist whose opinion will be included in an act of tax audit if the bodies of the tax service receive an opinion from the taxpayers specialist before the date an act of tax audit is signed. Tax audits shall be conducted exclusively by the bodies of the tax service. Tax audits shall be subdivided into the following types: 1) 2) 3) a documentary audit; a spot-check audit; a chronometric inspection.
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Documentary audits shall be subdivided into the following types:
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1)
a comprehensive audit an audit conducted by a body of the tax service in relation to a taxpayer (tax agent) on the fulfilment of tax obligations with respect to all types of taxes and other obligatory payments to the budget; the completeness and timeliness of the calculation, withholding and transfer of obligatory pension contributions; the completeness and timeliness of the calculation and payment of social contributions. A comprehensive audit may include issues from targeted audits. A documentary audit conducted according to articles 37 and 40-42 of this Code shall be regarded as a liquidation audit and treated as a comprehensive audit;
2)
a targeted audit - an audit conducted by a body of the tax service in relation to a taxpayer (tax agent) with respect to: whether tax obligations for certain types of taxes and (or) other obligatory payments to the budget have been executed; whether obligatory pension contributions have been calculated, withheld and transferred, and whether social contributions have been calculated and paid in full and on time; whether banks and organisations performing certain banking operations have fulfilled responsibilities established by this Code, the Laws of the Republic of Kazakhstan On Obligatory Social Insurance and On the Provision of Pensions in the Republic of Kazakhstan; transfer pricing; the state regulation of the production and circulation of certain types of excisable goods; identifying tax obligations with respect to operations with a taxpayer recognised as a fictitious company based on a valid court verdict or resolution; identifying a tax obligation with respect to a transaction(s) that a court has recognised as having been concluded without any intention to perform business activities; identifying mutual settlements between a taxpayer (tax agent) and its debtors; the legality of applying provisions of international treaties (agreements); confirming the accuracy of value added tax claimed for refund; a refund of income tax paid from the budget or an escrow account based on a non-residents tax application and an international treaty on the avoidance of double taxation; a taxpayers (tax agents) failure to execute notification from the tax bodies to eliminate violations discovered after a cameral review, in accordance with the procedure established by article 608 of this Code. In this respect, a targeted audit may be conducted at the same time on several of the issues listed in this subpoint. A targeted audit may not envisage an audit of the fulfilment of a tax obligation with respect to all taxes and other obligatory payments to the budget;
3)
cross-check audit an audit by a body of the tax service of persons transacting with a taxpayer (tax agent) in relation to which the body of the tax service is conducting a comprehensive, targeted or additional audit, to obtain additional information on the transactions in question for use during the audit of the taxpayer in question. A cross-check audit shall be a secondary audit in relation to a comprehensive, targeted or additional audit;
4)
additional audit an audit conducted based on a decision of the body of the tax service considering:
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a taxpayers (tax agents) appeal against a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against a notification, conducted on issues set forth in the taxpayers (tax agents) appeal; a non-residents request for a reconsideration of a tax application to refund income tax from the budget or an escrow account in accordance with the provisions of an international treaty on the avoidance of double taxation. An additional audit shall be conducted to obtain additional information required to issue a decision on a taxpayers (tax agents) appeal, and also after a non-residents tax application to refund income tax from the budget or escrow bank account has been reconsidered. 6. A spot-check audit is an audit conducted by the bodies of the tax service at a specific location in relation to specific taxpayers performing business activities in that location, in order to verify their compliance with particular requirements of legislation of the Republic of Kazakhstan, and specifically: 1) 2) 3) a record of registration with the tax bodies; the correct use of cash registers with fiscal memory; compliance with licensing rules and conditions for the production, storage and realisation of certain types of excisable products; execution of an instruction issued by a tax body to suspend expense operations in a cash department. Representatives of public associations (business communities) may be invited to participate in spot-check audits with the consent of the associations. Representatives of public associations (business communities) shall ensure that taxpayer rights are observed during a spot-check audit. A spot-check audit act shall record the participation of representatives of public associations (business communities). 7. A chronometric inspection is an audit conducted by the tax bodies to establish a taxpayers actual income and actual costs associated with activities used to generate income, during the period in which an investigation is being conducted. The performance of a tax audit should not cause a taxpayers (tax agents) activities to be suspended, except for those cases established by legislative acts of the Republic of Kazakhstan. Tax audits shall be divided into the following types: 1) planned comprehensive and targeted audits performed according to a tax audit plan approved quarterly by a body of the tax service. A tax audit plan shall be compiled based on an analysis of tax reporting filed by a taxpayer (tax agent), information from the authorised state bodies, and also other documents and information on a taxpayers (tax agents) activities; extraordinary tax audits not listed in subpoint 1) of this point, including those performed according to an application from the taxpayer (tax agent) itself, and also on the grounds stipulated by criminal and procedural legislation of the Republic of Kazakhstan.
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10. The bodies of the tax service shall be entitled to audit a legal entitys structural subdivisions irrespective of whether the legal entity itself has undergone a tax audit. A liquidation tax audit shall not be performed when de-registering a resident legal entitys structural subdivision, except for those cases when a taxpayer files a tax application for a tax audit in connection with the liquidation of a structural subdivision. 11. A period subject to documentary audit should not exceed the statute of limitation established in accordance with article 46 of this Code.
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12. If after a cameral review the bodies of the tax service discover violations relating to the calculation of a tax obligation from operations with a taxpayer recognised as a fictitious company, and (or) from a transaction(s) recognised by a court as having been concluded without any intention of performing business activities, tax audits on these issues for the tax period in which the operations and (or) transaction(s) were concluded may not be conducted before a taxpayer receives notification on the elimination of violations discovered by the bodies of the tax service after a cameral review and after the deadline set by point 2 of article 608 of this Code. Information on a taxpayer recognised as a fictitious company shall be placed on the authorised bodys website no later than 20 working days from the day the body of the tax service first receives a court verdict or resolution. 2. Procedure and Deadline for conducting Tax Audits Article 628. Frequency of Tax Audits Tax audits shall be carried out as follows: 1) comprehensive audits no more than once a year, except for those cases stipulated by article 630 of this Code; targeted audits no more than once a year for the same issue from those listed in subpoint 2) of point 5 of article 627 of this Code, except for those cases stipulated by article 630 of this Code; 2) cross-check audits when additional information is required on a taxpayers (tax agents) correct record of operations in tax accounting; spot-check audits upon receipt of the results of an analysis of tax reporting filed by a taxpayer, information from the authorised state bodies, and also other documents and information on a taxpayers activities; chronometric inspections upon receipt of the results of an analysis of tax reporting filed by a taxpayer, information from the authorised state bodies, and also other documents and information on a taxpayers activities.
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Article 629. Time Frame for performing Tax Audits 1. The time frame for tax audits indicated in instructions issued should not exceed 30 working days from the moment an instruction is served, unless otherwise established by this article. The time frame for a tax audit may be extended: 1) for legal entities without structural subdivisions, individual entrepreneurs and non-residents operating through permanent establishments, provided they have no more than one location in the Republic of Kazakhstan, except for those cases referred to in subpoint 2) of this point: by the tax body that appointed the tax audit up to 45 working days; by a higher body of the tax service up to 60 working days; 2) for legal entities with structural subdivisions, and non-residents operating through permanent establishments, provided they have more than one location in the Republic of Kazakhstan, and also for major taxpayer subjects to monitoring: by the tax body that appointed the tax audit up to 75 working days; by a higher body of the tax service up to 180 working days; 3. The authorised body may extend the time frame of a tax audit for the taxpayers referred to in:
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1) 2) 4.
subpoint 1) of point 2 of this article up to 60 working days; subpoint 2) of point 2 of this article up to 180 working days.
The time frame for conducting a tax audit shall be suspended for the period beginning from when a taxpayer (tax agent) is served with a demand from the tax bodies to provide information and documents until the taxpayer (tax agent) provides the information and documents requested during a tax audit, and also from when an enquiry is sent from a body of the tax service to other regional tax bodies, state bodies, banks and organisations performing certain banking operations, and other organisations operating in the Republic of Kazakhstan, and the date information and documents are received with respect to the enquiry. The time frame for conducting a tax audit shall also be suspended for the period from when the bodies of the tax service send an enquiry for information to foreign countries until the information is received by the bodies of the tax service in accordance with international treaties.
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Any suspension for the reasons established by point 4 of this article shall not be included in the time frame for an audit: 1) 2) of major taxpayers subject to monitoring; conducted due to the liquidation of a resident legal entity; a non-resident legal entitys cessation of activities in the Republic of Kazakhstan performed through a permanent establishment; the cessation of activities by an individual entrepreneur, private notary or advocate; the targeted audits of legal entities on transfer pricing issues; targeted audits to confirm the accuracy of value added tax claimed for refund. The suspension period for the tax audits not referred to in subpoints 1)-3) of this point shall be included in a tax audit time frame.
3) 4)
6.
The time frame of a documentary audit, except for a cross-check audit, unless otherwise established by this article, subject to the provisions of points 2-5 of this article, should not exceed: 1) for legal entities without structural subdivisions, individual entrepreneurs and non-residents operating through permanent establishments provided they have no more than one location in the Republic of Kazakhstan, except for those cases referred to in subpoint 3) of this point 60 working days; for legal entities with structural subdivisions, individual entrepreneurs and non-residents operating through permanent establishments provided they have more than one location in the Republic of Kazakhstan, except for those cases referred to in subpoint 3) of this point 180 working days; major taxpayers subject to monitoring 180 working days.
2)
3) 7.
The period for conducting, extending and suspending targeted tax audits to confirm the accuracy of value added tax claimed for refund shall be established observing the periods stipulated by points 3 and 4 of article 273 of this Code. The period for conducting chronometric inspections referred to in point 1 of this article may include rest days and public holidays provided the taxpayer being audited operates on these days. A chronometric inspection may be conducted in accordance with the taxpayers working hours, irrespective of the time of the day.
8.
Article 630. Special Considerations for conducting Extraordinary Documentary Audits 1. Extraordinary documentary audits shall be carried out: 1) for a previously audited tax period;
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2)
when a tax audit needs to be conducted before the end of the period established by article 628 of this Code.
2.
An extraordinary documentary audit of a previously audited period shall be conducted when conducting: 1) 2) a comprehensive tax audit no more than twice; a targeted tax audit no more than twice for each type of tax and (or) other obligatory payment to the budget.
3.
The provisions of point 2 of this article and article 628 of this Code shall not apply when: 1) a tax audit is conducted on the grounds stipulated by criminal and procedural legislation of the Republic of Kazakhstan; a taxpayer (tax agent) file additional tax reporting for a previously audited tax period in order to verify the accuracy of information recorded in the additional tax reporting; a response is received on previous enquiries of the bodies of the tax service, which had not been received during a previous tax audit; a taxpayer (tax agent) has not executed a notification of the tax bodies on the elimination of violations discovered after a cameral review, in accordance with the procedure established by article 608 of this Code; comprehensive and (or) targeted tax audits have been performed due to: a reorganisation through the division or liquidation of a resident legal entity, the structural subdivision of a non-resident legal entity; the cessation of activities by a non-resident legal entity in the Republic of Kazakhstan through a permanent establishment; the cessation of the activities of an individual entrepreneur, private notary or advocate; de-registration for value added tax purposes based on a taxpayers tax application; 6) comprehensive and (or) targeted tax audits have been conducted due to the expiry of a subsoil use contract; targeted audits have been conducted: based on a taxpayers request in a value added tax declaration to confirm the accuracy value added claimed for refund; with respect to the state regulation of the production and circulation of specific excisable goods, and also regarding the elimination of violations that have caused a licenser to suspend a license; to identify settlements between a taxpayer (tax agent) and its debtors in accordance with article 616 of this Code; based on a non-residents tax application for a refund of paid income tax from the budget or an escrow account in accordance with the provisions of an international treaty on the avoidance of double taxation; with respect to banks and organisations performing certain banking operations being late in transferring and failing to transfer taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, late payment interest, fines on the day funds were withdrawn from a taxpayers (tax agents) bank account and funds were paid in to banks and organisations performing certain banking operations against the payment of taxes and
2)
3)
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5)
7)
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other obligatory payments, obligatory pension contributions and social contributions, late payment interest and fines; to determine a tax obligation from operations with a taxpayer recognised as a fictitious company on the basis of a court verdict or resolution; to determine a tax obligation with respect to a transaction(s) recognised by a court as having been concluded with no intention of conducting business activities; 8) 9) cross-check audits have been conducted; additional audits have been conducted while considering: a taxpayers (tax agents) appeal against a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal on issues stated in the appeal; a non-residents request for a reconsideration of a tax application to refund paid income tax from the budget or an escrow account in accordance with the provisions of an international treaty on the avoidance of double taxation. 4. Extraordinary documentary audits, except for tax audits conducted according to an application from the taxpayer (tax agent) itself or for the reasons stipulated by criminal and procedural legislation of the Republic of Kazakhstan, shall be conducted according to a decision of the manager of the authorised body, subject to the provisions of this Code. If a taxpayer files a court appeal against a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal, extraordinary comprehensive and (or) targeted audits on the disputed issue for a previously audited period shall not be conducted until a court decision has entered into force.
5.
Article 631. Notice of Tax Audit 1. The bodies of the tax service shall send or serve notice of a tax audit to a taxpayer (tax agent) 30 calendar days before a planned and (or) extraordinary targeted audit is due to start, in the format established by the authorised body, unless otherwise established by this article, except for tax audits conducted in connection with: a reorganisation through the division or liquidation of a resident legal entity, the structural subdivision of a non-resident legal entity; the cessation of activities by a non-resident legal entity in the Republic of Kazakhstan through a permanent establishment; the cessation of the activities of an individual entrepreneur, private notary or advocate; de-registration for value added tax purposes based on a taxpayers tax application. 2. A notice shall be sent or served to a taxpayer (tax agent) at the location indicated in registration data. A notice sent by registered mail shall be considered as service from the day a response is received from a mail or other communication organisation. 3. If a taxpayer (tax agent) is absent from a location referred to in registration data, planned comprehensive and (or) planned targeted audits shall be conducted without notice. A notice should make reference to the type of tax audit, a list of issues subject to audit, a preliminary list of required documents, a taxpayers (tax agents) rights and obligations during a tax audit, and also other data required to conduct a tax audit.
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A body of the tax service shall be entitled to start a tax audit without notifying a taxpayer (tax agent) of the start of the audit in those cases when a justified risk exists that the taxpayer (tax agent) may conceal or destroy tax-related documents required for the audit, or other circumstances exist that make an audit impossible or make it impossible to conduct a full audit. A tax body shall conduct a tax audit without notifying a taxpayer based on the written permission of a higher body of the tax service.
Article 632. Grounds for conducting a Tax Audit 1. The grounds for conducting a tax audit shall be an instruction containing: 1) 2) 3) 4) 5) 6) the date and registration number of the instruction with the tax bodies; the title of the tax bodies issuing the instruction; the surname, name, patronymic (if applicable) or full name of the taxpayer (tax agent); an identification number; the type of audit; the positions, surnames, first names and patronymics (if applicable) of the inspectors and specialists engaged to conduct a tax audit in accordance with this Code; the time frame for conducting the audit; the tax period to be audited in the case of documentary audits.
7) 8) 2.
Where spot-check audits have been prescribed, an instruction should indicate the section of as particular area to be inspected, the issues to be addressed during the audit and also the information stipulated by point 1 of this article, except for subpoints 3), 4) and 7). When scheduling documentary audits, an instruction should refer to issues subject to audit irrespective of the type of audit, such as: 1) 2) the type of tax and other obligatory payment to the budget to be audited; the complete and timely calculation, withholding and transfer of obligatory pension contributions, and the complete and timely calculation and payment of social contributions; whether banks and organisations performing certain banking operations have performed responsibilities established by this Code, as well as by legislative acts of the Republic of Kazakhstan on obligatory social insurance and the provision of pensions; transfer pricing; the state regulation of the production and circulation of certain types of excisable goods; the identification of mutual settlements between a taxpayer (tax agent) and its debtors; a late transfer or failure to transfer (credit) taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, late payment interest and fines by banks and organisations performing certain banking operations on the day funds are withdrawn from a taxpayers (tax agents) bank account and funds are deposited in banks and organisations performing certain banking operations to pay taxes and make other obligatory payments, obligatory pension contributions and social contributions, late payment interest and fines; identifying tax obligations with respect to operations with a taxpayer recognised as a fictitious company based on a valid court verdict or resolution; 405
3.
3)
4) 5) 6) 7)
8)
9)
identifying a tax obligation with respect to a transaction(s) that a court has recognised as having been concluded without any intention to perform business activities;
10) the legality of applying the provisions of international treaties (agreements); 11) confirming the accuracy of value added tax claimed for refund; 12) confirming settlements between a taxpayer (tax agent) and its suppliers and purchasers. When conducting comprehensive audits, the types of taxes and other obligatory payments to the budget shall not be listed in an instruction. 4. An order should be signed by the first director of the bodies of the tax service or by an individual deputising for him, certified by an official seal and registered in a special journal in accordance with the procedure established by the authorised state body, unless otherwise established by this point. An instruction to conduct cross-check and spot-check tax audits as well as chronometric inspections may be signed by a deputy director of a body of the tax service. 5. Where the audit time frames envisaged by article 629 of this Code are extended and (or) the number of individuals conducting the audit change and (or) the tax period being audited changes, an additional instruction shall be executed to indicate the registration number and date of the previous instruction, as well as the surname, name and patronymic (if applicable) of individuals engaged to conduct the tax audit in accordance with this Code. Only one tax audit may be carried out on the basis of a single instruction, except for spot-check audits. Before a tax audit is due to start an instruction shall be subject to state registration with the body for statistical reporting and the control of acts scheduling audits of the activities of taxpayers (tax agents), except for the following cases: 1) when conducting targeted audits based on a taxpayers request in a value added tax declaration to confirm the accuracy of value added tax claimed for refund, and also with respect to the elimination of violations that have led to the suspension of a license; when conducting counter audits; when conducting documentary audits due to: a reorganisation through the division or liquidation of a resident legal entity, the structural subdivision of a non-resident legal entity; the cessation of activities by a non-resident legal entity in the Republic of Kazakhstan through a permanent establishment; the cessation of the activities of an individual entrepreneur, private notary or advocate, and also in the event of de-registration for value added tax purposes based on a taxpayers tax application.; Article 633. Start of a Tax Audit 1. A tax audit shall be deemed to have started from the moment an instruction is served to a taxpayer (tax agent). The officials of the body of the tax service conducting a tax audit should present their official identity cards to a taxpayer (tax agent). An official of the body of the tax service performing a tax audit, except for spot-check audits, shall present the original of an instruction to the taxpayer (tax agent). A taxpayer (tax agent) shall sign and date an instruction to acknowledge receipt and familiarisation with it. 406
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2) 3)
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Where spot-check audits are conducted, a taxpayer or its employee realising goods and providing services shall be presented with an original instruction for familiarisation and served with a copy of the instruction. The taxpayer or its employee realising goods and providing services shall sign and date an original to acknowledge familiarisation with the instruction and receipt of a copy. If a taxpayer (tax agent) refuses to sign a copy of an instruction of a body of the tax service, the employee of the body of the tax service conducting the audit shall compile an act on the refusal to sign in front of witnesses (at least two). In this respect, an act of refusal to sign shall specify: 1) 2) the place and date of execution; the surname, name and patronymic (if applicable) of the official of the body of the tax service who compiled the act; the surname, name and patronymic (if applicable), the identification card number and place of residence of witnesses; the number and date of the instruction, the name of the taxpayer (tax agent), his identification number; the circumstances behind a refusal to sign a copy of the instruction.
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A taxpayers (tax agents) refusal to accept an instruction shall not be considered grounds to cancel a tax audit. A taxpayers refusal to sign an instruction from a body of the tax service shall be recognised as a failure to allow officials of the bodies of the tax service access to a tax audit. This point shall not apply in those cases referred to in point 5 of article 636 of this Code.
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While a tax audit is being conducted it may not be terminated according to a taxpayers tax application. Special Considerations of conducting a Chronometric Inspection
Article 634. 1. 2.
Taxpayers and (or) their representatives shall be present at a chronometric investigation. To conduct a chronometric inspection the bodies of the tax service shall identify the issues related to an object of taxation and (or) object relating to taxation under inspection themselves. In this respect, the following shall be subject to obligatory investigation: 1) objects of taxation and (or) objects relating to taxation. When necessary, the bodies of the tax service shall be entitled to carry out a stock take of a taxpayers inventories; the existence of money, monetary documents, accounting books, reports, estimates, securities, settlements, declarations and other documents related to objects of taxation and (or) objects relating to taxation under investigation; a fiscal report from a cash register.
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When conducting a chronometric investigation, the officials of the bodies of the tax service conducting the chronometric investigation should ensure that information received during the investigation has been entered accurately and in full in chronometric measurement cards. A separate chronometric measurement card should be compiled for each object of taxation and (or) object relating to taxation, and for each other source of income, and should contain the following information: 1) 2) the taxpayers name, identification number and type of activity; the date an investigation is conducted;
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3) 4) 5)
the location of an object of taxation and (or) object relating to taxation; the start and end time of a chronometric investigation; the object of taxation and (or) object relating to taxation, the value of goods realised, work performed or services provided; data on an object of taxation and (or) object relating to taxation under investigation; investigation results; other data.
6) 7) 8) 4.
A summary table for all objects of taxation and (or) objects relating to taxation, and for other sources of income, shall be compiled daily at the end of each investigation day. A chronometric measurement card and summary table should be signed by an official of a body of the tax service and a taxpayer (or representative), and attached to an act of chronometric inspection. Copies of documents, statements and other materials received during an investigation that confirm the date referred to in a chronometric measurement card shall, if necessary, be attached to a chronometric measurement card.
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The results of a chronometric inspection of taxpayers shall be taken into consideration when accruing taxes and other obligatory payments to the budget after a comprehensive or targeted audit.
Article 635. Procedure for conducting Targeted Audits based on a Taxpayers Request in a Value Added Tax Declaration to confirm the Accuracy of Value Added tax claimed for Refund 1. A targeted audit to confirm the accuracy of value added tax claimed for refund shall be conducted in relation to a taxpayer who has filed a value added tax declaration indicating a request to refund excess value added tax. A tax period being audited shall include the tax period for which a value added tax declaration has been filed indicating a request to refund excess value added tax, and also previous tax periods, except for those outside of the statute of limitation set by article 46 of this Code, for which audits of tax in question have not been conducted. Value added tax subject to refund in accordance with this Code being calculated while goods are being exported shall take into consideration information from the customs bodies confirming the export of goods from the customs territory of the Republic of Kazakhstan under the export regime and presented in the format and in accordance with the procedure approved by the authorised body together with the authorised state body for customs issues. The customs bodies shall be responsible for information confirming an export of goods from the customs territory of the Republic of Kazakhstan under the export regime. 4. An export of goods for which a payer of value added tax receives in its bank accounts opened in accordance with the procedure established by legislation of the Republic of Kazakhstan, or goods actually imported into the Republic of Kazakhstan and supplied to a payer of value added tax by a purchaser of exported goods according to foreign trade barter transactions shall be taken into consideration if goods are exported while value added tax subject to refund is being calculated. Foreign trade barter agreements (contracts) and import freight customs declarations for goods supplied to payers of value added tax by a purchaser of goods exported under a foreign trade barter transaction shall be taken into consideration if goods are exported under foreign trade barter transactions when calculating value added tax subject to refund.
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The National Bank of the Republic of Kazakhstan and commercial banks shall file a conclusion with the bodies of the tax service on currency receipts in accordance with the procedure and in the format approved by the authorised body in coordination with the National Bank of the Republic of Kazakhstan. To obtain this conclusion the bodies of the tax service shall send an enquiry on currency revenue as at the date a tax audit is started. 5. During a targeted audit a tax body may assign cross-check audits of a taxpayers direct suppliers of goods, work and services. If a direct supplier of a taxpayers goods, work and services has a record of registration for value added tax purposes with a different tax body, the tax body that initiated the targeted audit may send a request to the relevant tax body to conduct a cross-check audit of the supplier. The accuracy of value added tax claimed for refund on operations between the taxpayer that claimed the value added tax refund and a direct supplier, which is a major taxpayer subject to monitoring, shall be confirmed by the tax body that initiated a targeted audit, based on information confirming the accuracy of value added tax received from the authorised body in response to an enquiry sent by the tax body. An enquiry to the authorised body shall be sent in relation to the direct supplier major taxpayer subject to monitoring for which a decision has been taken to send an enquiry in accordance with the procedure stipulated by point 8 of this article. An enquiry should contain information on a taxpayer being audited, a direct supplier major taxpayer subject to monitoring, the number and date of tax invoices issued, the value of turnover from goods realised, services provided and work performed, an amount of value added tax and the period being audited. The authorised body shall provide information confirming the accuracy of value added tax, including on operations not listed in an enquiry for the period being audited and concluded by a direct supplier major taxpayer subject to monitoring and a taxpayer being audited. Information confirming the accuracy of value added tax shall be provided on the basis of data from monitoring reports that the authorised body has available. 7. The following suppliers of a payer of value added tax undergoing a targeted audit shall not be subject to a cross-check audit: 1) 2) those supplying electricity and heat, water, gas and communication services; non-residents performing work, providing services and supplying goods who are not payers of value added tax in the Republic of Kazakhstan and not operating through a branch or representative office; major taxpayers subject to monitoring.
6.
3) 8.
A decision to schedule an obligatory cross-check audit of a supplier and (or) send an enquiry to the authorised body to confirm the accuracy of value added tax based on the tax reporting of major taxpayers subject to monitoring, shall be adopted with respect to the direct suppliers of a payer of value added tax for whom value added tax taken as an offset by the payer of value added tax according to documents drawn up by the suppliers, amounts to 80% of total value added tax taken as an offset by the payer of value added tax according to documents drawn up by all suppliers. In this respect, value added tax on imported goods and value added tax according to tax invoices issued by the suppliers listed in subpoints 1) and 2) of point 7 of this article shall be removed from total value added tax offset according to documents drawn up by all suppliers. To calculate 80% of total value added tax offset a list of suppliers of a payer of value added tax shall be drawn up in accordance with the procedure for decreasing value added tax indicated in supplier tax invoices.
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The suppliers from this list whose total value added tax in tax invoices amounts to 80% of total value added tax offset shall be subject to an obligatory cross-check audit with respect to all settlements with a payer of value added tax. 9. Value added tax shall not be refunded up to the amounts for which responses have not been received by a tax audit completion date to request to conduct cross-check audits to confirm the accuracy of settlements with suppliers, and (or) if a supplier of the taxpayer being audited has not corrected violations discovered during cross-check audits conducted in connection with previous requests, and on the basis of responses received from the authorised body confirming the accuracy of value added tax for a major taxpayer subject to monitoring from previous requests. In this respect, an act of tax audit should specify the grounds for a failure to refund value added tax. 10. Value added tax shall be refunded based on an opinion to an act of tax audit in the format established by the authorised body: 1) if a response to a request to conduct cross-check audits of the suppliers of a taxpayer being audited is received after a tax audit has been concluded; if the supplier of a taxpayer being audited has corrected violations discovered during crosscheck audits from previous requests. At least two copies of an opinion to an act of tax audit shall be compiled and signed by the officials of the body of the tax service. One copy of an opinion to an act of tax audit shall be served to a taxpayer, who should acknowledge receipt of the opinion in the other copy. 11. If by the time a cross-check audit is being conducted a supplier has ceased operations due to liquidation, confirmation of an amount of value added tax taken as an offset shall be based on a register of tax invoices for goods realised, work performed and services provided. 12. If responses to requests are received after a targeted audit has been concluded, a tax body shall compile an opinion to an act of tax audit between the 20th and the 25th of the last month of the quarter. In this respect, an opinion shall be compiled taking into account requests to conduct cross-check audits received as at the 20th of the final month of the quarter. 13. Total value added tax claimed for refund according to an act of targeted audit and a conclusion to an act of tax audit should not exceed the amount indicated in a request to refund excess value added tax in a value added tax declaration for the period being audited. 14. The provisions of this article shall apply if a body of the tax service includes confirmation of the accuracy of value added tax claimed for refund in a comprehensive audit. Article 636. Access of the Officials of a Body of the Tax Service to a Particular Site or Premises to conduct a Tax Audit 1. A taxpayer (tax agent) should provide the officials of the bodies of the tax service performing a tax audit with access to sites and (or) premises (but not residential premises) used to generate income, or grant them access to objects of taxation and (or) objects relating to taxation, for investigation purposes. An act on a failure to provide officials of the bodies of the tax service to conduct a tax audit shall be drawn up if the officials of the bodies of the tax service conducting a tax audit are prevented from accessing a site and (or) premises (except for residential premises) to conduct the tax audit. An act on a failure to provide officials of the bodies of the tax service to conduct a tax audit shall be signed by the officials of the bodies of the tax service conducting a tax audit and a taxpayer (tax agent). A taxpayer (tax agent) shall provide a written explanation for any refusal to sign an act.
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The officials of the bodies of the tax service should carry special passes if required for admission to a taxpayers (tax agents) site or premises in accordance with legislative acts of the Republic of Kazakhstan. A taxpayer (tax agent) shall be entitled not to admit officials of the bodies of the tax service onto its site or premises to carry out a tax audit where: 1) 2) 3) 4) an instruction has not been executed in accordance with the established procedure; the time frame for the audit indicated in the instruction has not yet started or has passed; the individuals in question are not listed in the instruction; officials of the body of the tax service do not have special passes required to access a taxpayers site or premises in accordance with legislative acts of the Republic of Kazakhstan.
5.
Article 637. Conclusion of a Tax Audit 1. Upon conclusion of a tax audit, an official of the bodies of the tax service shall draw up an act of tax audit indicating: 1) 2) 3) the place where the tax audit was carried out and the date the act was drawn up; the type of audit; the position, surname, first name and patronymic (if applicable) of the officials of the bodies of the tax service performing the tax audit; the name of the body of the tax service; the surname, first name and patronymic (if applicable) or full title of the taxpayer (tax agent); the location and bank details of the taxpayer (tax agent) and also an identification number; the surname, first name and patronymic (if applicable) of the director and officials of the taxpayer (tax agent) responsible for maintaining tax and accounting reporting, paying taxes and making other obligatory payments to the budget; information on a previous audit and measures taken to rectify previously discovered infringements of tax legislation of the Republic of Kazakhstan (when conducting comprehensive, targeted and additional audits); the tax period under audit and general information on documents presented by a taxpayer (tax agent) to conduct an audit;
4) 5) 6) 7)
8)
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10) a detailed description of a tax infringement with reference to the relevant provision of tax legislation of the Republic of Kazakhstan; 11) tax audit results. 2. A tax audit shall be deemed to have been completed on the date on which an act of tax audit is served to a taxpayer (tax agent). An act shall be considered as served if a taxpayer (tax agent) has confirmed receipt of it. A tax investigation shall be performed if an act cannot be served to a taxpayer (tax agent). In this respect the tax audit completion date shall be the date a tax investigation is completed. 3. If, upon the conclusion of a tax audit, no infringements of tax legislation have been discovered, a note to that effect shall be made in an act of tax audit.
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If a taxpayer (tax agent) is absent at its location and (or) the tax audit location at the date a tax audit is completed, the official of the body of the tax service who conducted the tax audit shall make the relevant note in the act of tax audit. An act of tax audit shall be accompanied by copies of any necessary documents or calculations made by officials of the bodies of the tax service and other materials received during the course of the tax audit, except for information that is a tax secret in accordance with article 557 of this Code. No less than two copies of an act of tax audit shall be drawn up and signed by the officials of the bodies of the tax service that conducted a tax audit. One copy of an act of tax audit shall be served to a taxpayer (tax agent). If between the date liquidation tax reporting is received and a liquidation tax audit is completed obligations arise to calculate and pay taxes and make other obligatory payments to the budget; to calculate, withhold and transfer obligatory pension contributions; calculate and pay social contributions, these obligations shall be recorded in an appendix to an act of tax audit without late payment interest and fines.
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Article 638. Decisions on Tax Audit Results 1. If a tax audit has discovered violations, the bodies of the tax service shall draw up and send to the taxpayer (tax agent) a notification of tax audit results within the deadline established in accordance with article 607 of this Code. A notification of tax audit results and an act of tax audit shall be registered with the bodies of the tax service under a single registration number, except in the case established by point 7 of this article. A notification of tax audit results should contain the following details and information: 1) 2) 3) 4) the date and registration number of the notification and act of tax audit; the surname, first name and patronymic (if applicable) or full title of the taxpayer (tax agent); the identification number; the amount of accrued taxes and other obligatory payments to the budget, obligations to calculate, withhold and transfer obligatory pension contributions, to calculate and pay social contributions and late payment interest; reduced losses; excess value added tax not confirmed for refund; corporate (individual) income tax withheld at the source of payment from non-residents income, which has not been confirmed for refund; a request for payment and payment deadline; details of the relevant taxes and other obligatory payments to the budget and late payment interest;
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3.
5) 6) 7)
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10) appeal deadlines and locations. 4. If a tax audit is instigated as part of a criminal case, a notification of the results of the tax audit of the taxpayer in relation to whom the criminal case has been instigated shall be issued before the criminal case is considered. A taxpayer (tax agent) in receipt of a notification of tax audit results should execute it within the deadline established in the notification, except where a taxpayer appeals against tax audit results.
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If a taxpayer (tax agent) agrees with accrued taxes, other obligatory payments to the budget, and the late payment interest referred to in a notification of tax audit results, the deadline for fulfilling a tax obligation to pay taxes, make other obligatory payments to the budget and also an obligation to pay late payment interest may be extended by 60 working days according to a taxpayers (tax agents) application filed together with a payment schedule. In this respect, the amount in question shall be payable to the budget inclusive of late payment interest for each day the payment deadline is extended, and shall be paid in equal instalments every 15 working days of the period in question. The fulfilment of the following tax obligations shall not be extended: to pay excise duty and taxes withheld at the source of payment that have been accrued according to the results of a tax audit; to pay taxes, other obligatory payments to the budget and late payment interest accrued according to the results of a tax audit, after the results of the audit have been appealed.
7.
If no violations of tax legislation of the Republic of Kazakhstan have been established after completion of a tax audit, notification of tax audit results shall not be issued. The liabilities referred to in point 7 of article 637 of this Code shall be recorded in notification on accrued taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions from the date liquidation tax reporting was filed until a liquidation tax audit is completed, and which shall be sent to a taxpayer in accordance with the procedure established by article 608 of this Code. If during an extraordinary documentary audit, which is not an additional audit, of the same tax period with respect to the same issue, a body of the tax service has discovered that a taxpayer has violated tax legislation, and if that discovery had not been made during any previous tax audit, the taxpayer shall not be subject to administrative sanctions for that violation. This point shall not extend to violations of tax legislation discovered: 1) where a taxpayer reduces tax or charges payable to the budget by filing additional tax reporting for a period already audited on the tax or charge in question; after receipt of a response to an enquiry sent by a tax body when conducting any of the previous tax audits for one and the same tax period, if the response has been received after the audit has been completed; after consideration of documents impacting tax or charges payable to the budget and which have not been provided by a taxpayer with respect to a written enquiry of a body of the tax service during any of the previous tax audits of one and the same tax period on the tax or charge in question; with respect to operations with a taxpayer recognised as a fictitious company, after a court verdict or resolution has come into effect, and if information on the taxpayer was placed on the authorised bodys website after any of the previous tax audits of the tax period in which the operations were concluded have been completed; with respect to a transaction(s) concluded with a private entrepreneur without any intention to perform business activities, after a court verdict or resolution have entered into force, if a body of the tax service first received information on the transaction(s) after completing any of the previous tax audits for the tax period in which the transaction(s) was (were) concluded.
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3. Identification of Objects of Taxation and (or) Objects relating to Taxation using the Indirect Method Article 639. General Provisions 1. If accounting procedures are breached due to the loss or destruction of accounting documents, the bodies of the tax service shall determine objects of taxation and (or) objects relating to taxation using indirect methods (assets, liabilities, turnover, costs and expenses) in accordance with the procedure determined by articles 639-642 of this Code. The concept of breach of accounting procedures due to the loss or destruction of accounting documents shall be understood as a taxpayers (tax agents) lack of or failure to file documents that are the grounds for determining objects of taxation and (or) objects relating to taxation, for calculating tax liabilities requested by the bodies of the tax services in accordance with point 4 of article 629 of this Code. The term indirect methods of determining objects of taxation and (or) objects relating to taxation shall be understood as amounts of tax and other obligatory payments to the budget based on an appraisal of assets, liabilities, turnover, expenses, and also on an appraisal of other objects of taxation and (or) objects relating to taxation used to calculate a tax obligation in relation to a specific tax and other obligatory payment to the budget in accordance with this Code. An appraisal of objects of taxation and (or) objects relating to taxation shall be made on the basis of information received from tax reporting and (or) primary accounting documents, and also from other sources.
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Article 640. Tax Audits in the Absence of Accounting and Other Documents (Information) If a taxpayer (tax agent) has not filed all or a part of documents required to determine objects of taxation and (or) objects relating to taxation during a documentary tax audit, the taxpayer (tax agent) shall be served with a demand from the body of the tax service to provide or recover the documents, as well as notice on the suspension of a tax audit. A request of a body of the tax service shall be executed within 30 working days of the day following the day it is served to the taxpayer (tax agent). A taxpayer (tax agent) that has not provided documents at the request of a body of the tax service to determine objects of taxation and (or) objects relating to taxation shall provide a written explanation for the failure to provide the documents in question. Article 641. Sources of Information 1. To determine objects of taxation and (or) objects relating to taxation using indirect methods, the bodies of the tax service, depending on the circumstances, nature and type of activities of a taxpayer (tax agent) being audited, may use the following information: 1) statements from banks and organisations performing certain banking operations on the existence and movement of funds in a taxpayers (tax agents) bank accounts; on objects of taxation and (or) objects relating to taxation according to data from the authorised state bodies, non-state organisations and local executive bodies; on the accrual and receipt of taxes and other obligatory payments to the budget based on a taxpayers (tax agents) personal account, which should be compared with the taxpayers (tax agents) accounting data; on objects of taxation and (or) objects relating to taxation obtained from tax reporting forms filed by a taxpayer (tax agent) during the tax period being audited and preceding tax periods; on the results of cross-check audits in relation to persons that shipped goods and (or) performed work, and (or) provided services received through the information systems of the state bodies, and also from other sources;
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received by a body of the tax service when investigating and (or) carrying out a stock take of the property (except for residential premises) of a taxpayer (tax agent) being audited, which is an object of taxation and (or) object relating to taxation.
2.
The bodies of the tax service shall send enquiries to: 1) 2) 3) banks and organisations performing certain banking operations; the appropriate authorised state bodies, non-state organisations and local executive bodies; other regional tax bodies on cross-check tax audits with respect to settlements with the suppliers and customers of a taxpayer (tax agent); the competent bodies of foreign countries.
4) 3.
Information required may be received from the following sources (supported by documentation): 1) from clients, on the value of services provided by a taxpayer (tax agent) being audited and from customers, on the value and quantity of products purchased; from individuals and legal entities providing services to a taxpayer (tax agent) being audited, and shipping raw materials, power resources and auxiliary materials for the production and circulation of certain types of excisable goods.
2)
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Sources of information may differ in each specific case depending on the circumstances, nature and type of activities performed by a taxpayer (tax agent) being audited.
Article 642. Procedure for determining Objects of Taxation and (or) Objects relating to Taxation 1. Objects of taxation and (or) objects relating to taxation shall be determined based on information received in accordance with the procedure established by article 641 of this Code. Information on the receipt of funds to a taxpayers (tax agents) bank accounts, payment cards, and also from other payment and settlement documents, which is confirmed by a bank statement, and other information (documents) confirming a taxpayers (tax agents) receipt of funds shall be used to calculate income. If the organisations or individuals determined by article 641 of this Code provide information that a taxpayer being audited has received (is due to receive) other income, the income in question shall be included in total income (taxable turnover). If information provided by the customs bodies of the Republic of Kazakhstan establishes that a taxpayer has received hard currency revenue from export operations the export revenue shall be included in realisation turnover and in aggregate income. When determining objects of taxation and (or) objects relating to taxation, in accordance with this article a taxpayers (tax agents) expenses that have not been confirmed by primary documents shall not be deductible for corporate income tax purposes or taken as an offset for value added tax purposes. The taxable base for excisable goods shall be determined on the basis of points 1 and 2 of article 283 of this Code. In this respect, the volume of excisable goods manufactured shall be determined in accordance with industry norms for expenses and losses of raw materials, energy resources and auxiliary materials. 7. If a taxpayer (tax agent) has no documents confirming the original value of tangible assets, including construction in progress, vehicles, land plots, intangible assets, investment real estate, of if these documents have been lost or damaged, the taxpayers aggregate annual income shall include the market value of the property in question.
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8.
The market value of the objects referred to in point 7 of this article shall be determined based on a report drawn up by an appraiser engaged by the bodies of the tax service and operating in accordance with legislation of the Republic of Kazakhstan. The object of taxation for individual income tax and social tax may be money when it has been proven that funds have been withdrawn from a bank account to pay a salary and (or) transferred from the bank account to individuals bank accounts. In this respect, a tax obligation shall arise at the moment a bank executes a taxpayer (tax agent) instruction to transfer (issue) the relevant amounts of funds to a taxpayer (tax agent) or third parties.
9.
10. Information on objects of taxation and (or) objects relating to taxation determined by the bodies of the tax service using indirect methods shall be compared to the relevant data indicated by a taxpayer (tax agent) in tax declarations (statements), and other reports filed with the bodies of the tax service. 11. Where taxes and other obligatory payments to the budget declared by a taxpayer (tax agent) in tax reporting are greater than those calculated using indirect methods, then the relevant audit shall use the tax amounts indicated by the taxpayer (tax agent) in tax reporting. 12. Where an amount of income declared by a taxpayer (tax agent) in tax reporting is greater than income from other (additional) sources of information, the income indicated in tax reporting shall be used in an audit. Article 643. Determining Objects of Taxation in Specific Cases 1. Where an individuals income recorded in a tax declaration does not match personal expenses incurred, including to purchase property, the tax bodies shall determine income and tax on the basis of expenses incurred taking into account income from previous periods. Income shall also be subject to taxation in those cases when other persons and bodies dispute the legality of the receipt of the income. Where according to a court decision income should be seized to the budget in those cases stipulated by legislative acts of the Republic of Kazakhstan, said income shall be seized without deduction of the tax paid on it.
2.
3.
Chapter 9o. Procedure for the use of cash registers

Article 644. Main Terms used in this Chapter The following terms shall be used in this chapter: 1) cash registers fiscal units, electronic devices with a fiscal memory and (or) computer systems ensuring the registration and presentation of information on cash payments made for the realisation of goods and (or) provision of services; state register of cash registers (hereafter state register) a list of cash register models permitted for use in the Republic of Kazakhstan by the authorised body; cash register registration card an accounting document confirming the registration (deregistration) of a cash register with a tax body; cash register service centre (hereafter service centre) a business entity responsible in accordance with its charter (activity type) for the technical service of cash registers; control receipt a primary accounting document from a cash register used to confirm a monetary payment between a seller (service supplier) and customer (client); cash record book a log used to record a particular shifts turnover of funds, sales receipts, readings from a cash registers fiscal memory; 416
2)
3)
4)
5)
6)
7)
payment terminal an electronic or mechanical device accepting cash as payment for services in automatic mode; tax body seal a means of protecting a cash register from being opened without authorisation; taxpayer executive a taxpayer or individual employed by a taxpayer making settlements with a customer (client) using a cash register, and who is responsible for the work being performed;
8) 9)
10) vending machine an electronic or mechanical device realising goods in automatic mode in return for cash; 11) sales receipt a primary accounting document confirming that a monetary settlement has been made, and which is used when a cash register is not in working order or in the absence of electricity; 12) sales receipt book total sales receipts collected in a book; 13) fiscal symbol a distinctive symbol on control receipts used to confirm that a cash register is in the fiscal mode; 14) fiscal data information on monetary transactions recorded in a cash registers fiscal memory; 15) fiscal report a report on a change to readings in a cash registers fiscal memory for a specific period; 16) fiscal memory a series of software and hardware that cannot be adjusted or that are not dependent on a power source, and that store total information on monetary transactions; 17) fiscal mode a cash register mode that ensure the uncorrectable registration and energyindependent long-term storage of information in a fiscal memory; Article 645. General Provisions 1. In the Republic of Kazakhstan, monetary transactions conducted through trade relations, or the provision of services in return for cash, shall be carried out by using cash registers. The provisions of this point shall not apply to monetary transactions: 1) between individuals not subject to obligatory state registration as individual entrepreneurs, except for those operating as private notaries; individual entrepreneurs (except for those realising excisable goods): operating on the basis of a patent under the special tax regime for small businesses; operating within the framework of the special tax regime for farms and farm holdings;
2)
3) when providing transportation services on municipal public transport with tickets in the format
approved by the authorised state body for transport together with the authorised body. 2. Local executive bodies shall file a report with the tax bodies in their location on or before the 20th of the month following the reporting quarter on taxpayers use of tickets from transportation services on municipal public transport, in the format approved by the authorised body. Vending machines and payment terminals conducting monetary transactions or providing cash services shall be equipped with cash registers that should be included in the state register. The following requirements shall be made to use cash registers: 1) cash registers shall be registered with a tax body before cash transaction activities are started;
3.
4.
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2)
a cash register receipt or sales receipt shall be issued in the amount paid for a good or service (except for cash registers used in a vending machine); the access of officials of the tax bodies to be cash registers shall be guaranteed.
3)
Article 646. Registration of Cash Registers with a Tax Body 1. Working cash registers included in the state register shall be registered with the tax bodies at the location cash registers are used. Cash registers that have been fitted on vending machines and payment terminals shall be registered with the tax body at the taxpayers location. 2. The tax bodies shall not register the cash registers of taxpayers who are not covered by the requirement to use cash registers in accordance with point 1 of article 645 of this Code. Cash registers shall be registered by assigning a registration number to the cash register and issuing a registration card for the cash register within five working days of the taxpayer filing a tax application to register a cash register. When registering a cash register with the tax bodies, except for cash registers working as computer systems, a taxpayer shall file the following with a tax body: 1) 2) a tax application to register a cash register with a tax body; a cash register containing information on a taxpayer that may be entered without installing a fiscal mode; the manufacturers documentation; cash record and sales receipt books numbered, bound, signed and (or) stamped by the taxpayer.
3.
4.
3) 4)
5.
When registering a cash register that is a computer system, a taxpayer shall file the following with a tax body: 1) 2) 3) a tax application to register a cash register with a tax body; a brief description of the functional capabilities and characteristics of the computer system; a manual for the Tax Inspector Work Space computer system unit being registered with a tax body, and access to it.
6.
A tax body official, when registering cash registers with a tax body, except for computer systems, shall: 1) 2) verify compliance of information indicated in a tax application with documents provided; compare a cash registers factory number that has been etched on the cash register with the number indicated in the manufacturers documentation; verify that cash record and sales receipt books have been drawn up correctly; install a fiscal operating mode for a cash register; install a tax body seal on the body of the cash register; draw up a cash register registration card; certify cash record and sales receipt books with a personal signature, the signature of the manager and stamp of a tax body; 418
3) 4) 5) 6) 7)
8)
return the following to a taxpayer: a cash register with a fiscal operating mode installed and a tax body seal; certified cash record and sales receipt books; the manufacturers documentation for a cash register.
7.
When registering a cash register that is a computer system, a tax body official shall perform the actions stipulated by subpoints 1), 4) and 6) of point 6 of this article. In this respect, the installation of a computer system fiscal mode shall involve encrypting information against unsanctioned access to the computer systems fiscal data. A cash register registration card shall be issued to a taxpayer when registering a cash register with the tax bodies, shall be stored for the entire operating period of the cash register and presented at the request of the tax bodies. Cash register registration card forms, sales receipts, an act of the removal of a fiscal report, cash record and sales receipt books shall be established by the authorised body.
8.
9.
Article 647. Introduction of Amendments to Cash Register Registration Data 1. When the information referred to in a cash register registration card changes, a taxpayer should file a tax application with the tax body at which a cash register has been registered to make changes to cash register registration data within five days from the moment the changes arise. When making changes to cash register registration data, a taxpayer shall file the following with the tax body at the place of registration of the cash register: 1) 2) 3. a tax application to register a cash register with the amended information; the cash register registration card.
2.
An official of a tax body should draw up and issue a cash register registration card with amended registration data to a taxpayer within five working days of receipt of a tax application.
Article 648. De-Registration of Cash Registers with a Tax Body 1. A cash register shall be de-registered if: 1) activities related to cash transactions made during trading operations or providing services for cash are ceased; the location of the cash register or location of the taxpayer using the cash register in a vending machine or payment terminal change, if the change requires registration of the cash machine with a different tax body; further use is impossible due to a technical fault with the cash register; the cash register has been removed from the state register; cases arise that do not contradict tax legislation of the Republic of Kazakhstan.
2)
3) 4) 5) 2.
To de-register a cash register with a tax body, except for computer systems, a taxpayer shall file the following with a tax body together with a tax application to de-register a cash register: 1) 2) a cash register with the required tax body seal in place; the cash register manufacturers documentation;
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3)
cash record and sales receipt books numbered, bound, signed and (or) stamped by the taxpayer; the cash register registration card.
4) 3.
To de-register a cash register that is a computer system, a taxpayer shall file a tax application with a tax body to de-register a cash register, the cash registers registration card and provide access to the Tax Inspector Work Place unit. A tax body official should de-register a cash register within five working days of receiving an application with a tax body to de-register a cash register, for which the official shall: 1) 2) remove a fiscal report; conduct a cameral review and compare cash record books with fiscal report readings and sales receipt book data; make a record of the closure of cash record and sales receipt books; return the following to a taxpayer: a cash register; cash record and sales receipt books; a registration card with a note on the de-registration of a cash register.
4.
3) 4)
5.
When de-registering a cash machine that is a computer system, a tax body official shall remove the fiscal report and return the registration card to the taxpayer with a note on the de-registration of the cash register.
Article 649. De-Registration of a Fiscal Report and Requirements for the Content of Control Receipts 1. The tax bodies shall remove fiscal reports when: 1) 2) 3) 4) 5) 6) 2. conducting tax audits; replacing a fiscal memory block; de-registering a cash register; repairing a cash register that requires a password to access its fiscal memory; a cash record book is full; a cash record book has been lost (damaged).
A cash register and the following documents shall be provided to a tax body to remove a fiscal report: 1) cash record and sales receipt books numbered, bound, signed and (or) stamped by the taxpayer; shift reports from the date the last fiscal report tax taken. An act of the removal of a fiscal report shall be compiled when removing a fiscal report. Data from the act shall be entered into the tax bodies information system.
2)
3.
A control receipt for a cash register, except for computer systems, should contain the following information: 420
1) 2) 3) 4) 5) 6) 7) 8)
the name of the taxpayer; an identification number; the factory number of the cash register; the registration number of the cash register with a tax body; the serial number of the receipt; the date and time goods were purchased, work was performed and services provided; the price of goods, work, services and (or) the purchase amount; the fiscal symbol. A control receipt for computer systems (except for computer systems used by banks and organisations performing certain banking operations) should contain the information referred to in subpoints 1)-7) of this point. The form and content of a control receipt for computer systems used by banks and organisations performing certain banking operations shall be established by the National Bank of the Republic of Kazakhstan in coordination of the authorised body. A control receipt for cash registers used in currency exchange bureau, scrap metal and glass recycling sites, pawn shops should contain additional information on sales and purchase prices.
4.
A control receipt may also contain data stipulated by manufacturers technical documentation for cash registers, including on value added tax.
Article 650. Operation of Cash Registers 1. When operating a cash register, a taxpayers official shall: 1) enter the value of goods, work and services in accordance with the cash register operating instructions; draw up and issue sales receipts in the absence of electricity or if the cash register is out of order; enter data into a cash record book; after completing a shift, carry out the shift end procedure by removing the shift report (Zreport) according to the manufacturers technical requirements for the model of the cash register. Shift reports, cash record and sales receipt books; cancellation and refund receipts; and control receipts with respect to which cancellation and refund operations have been concluded should be stored by a taxpayer for five years from the date their are printed or filled-in. For cash registers, except for those used in vending machines, the shift period should not exceed 24 hours. For cash registers fitted in vending machines, the shift period shall be determined by a taxpayer, but should not exceed one calendar month. 2. Operations to cancel incorrectly paid amounts or return cash for goods realised, work performed or services provided shall be carried out in accordance with manufacturers technical requirements for a particular cash register model if an original control receipt is provided and the relevant record has been made in the cash record book.
2)
3) 4)
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3. 4.
Cash record book data should match that in shift reports as at the relevant date. Data from a report on current cash department status should match the amount of cash in the cash department at the moment a report is removed, and should take into account cash received and issued that is not connected with goods realised, work performed and services provided and recorded in a cash record book. If a cash register is not in working order and cannot be repaired without breaching the integrity of the tax body seal, a taxpayer shall, within three working days from the moment a fault is recorded, file the following documents with the tax body at which the cash register has been registered: 1) a tax application showing the number, issue date of a cash register registration card and total readings at the start of the day on which a fault was recorded; a conclusion from the service centre that shows the repair period and the reasons for the fault. On the date a tax application is received a tax body shall adopt a decision to issue or refuse to issue permission to breach the integrity of a cash register seal to rectify a fault. A tax body shall give permission to breach the integrity of a cash register seal in the format established by the authorised body or an official of the tax body responsible for installing seals, on the day a decision to give it is taken. A tax body shall refuse to issue permission to breach the integrity of a seal if the documents stipulated by subpoints 1) and 2) of this point have not been filed or have been filed incomplete. The deadline for presenting a cash register to a tax body to install a seal after repair may not be sooner than the repair period indicated in a conclusion of the service centre, but no more than 15 working days from the day a tax body gives permission to breach seal integrity.
5.
2)
6.
A cash register shall be considered as defective if: 1) it does not print, prints illegibly or if the details on the control receipt as determined by article 649 of this Code are not printed in full; data from the fiscal memory cannot be retrieved; a tax body seal is missing or damaged; the manufacturers stamp is missing.
2) 3) 4) 7.
A cash register that is a computer system shall be considered as defective in those cases stipulated by subpoints 1)-2) of point 6 of this article. In order to replace (renew) cash record and (or) sales receipt books that have been filled, lost or damaged a taxpayer shall file the following with a tax body at the place where the cash register is registered within five working days: 1) 2) 3) a tax application; numbered, bound, signed and (or) stamped new cash record and (or) sales receipt books; the documents determined by point 2 of article 648 of this Code. A cash register shall also be presented to a tax body to remove a fiscal report if a cash record book is full or has been lost (damaged).
8.
9.
The tax bodies shall replace a cash record and (or) sales receipt book within five working days from the moment a tax body registers a tax application.
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Article 651. State Register 1. The authorised body shall keep a state register of cash registers by including (removing) cash register models in (from) the state register. The inclusion of a cash register model in the state register shall be considered on the basis of a tax application from the interested party. A tax application shall be accompanied by a sample cash register and the following materials characterising the technical, functional and operating features of the cash register model: 1) 2) 3) manufacturers certification; manufacturers technical documentation; samples of receipts and reports printed from a cash register in fiscal and non-fiscal modes, by both the manufacturer and the applicant; cash register operating instructions in hard and soft copy; detailed soft and hard copy instructions for tax body officials on how to install a fiscal regime; reregister a cash register, remove fiscal reports and a report on cash department status (Xreport), and also enter the information stipulated by article 649 of this Code that should be printed in a control receipt; a technical guarantee from the cash register manufacturer; information on the compliance of the technical characteristics of a cash register model indicated in manufacturers documentation with basic technical requirements, in the format established by the authorised body; a notarised copy of a certificate of compliance for a cash register model; a colour photocopy of a cash register model in hard and soft copy. If a cash register model is a fiscal display, then a tax application should also include software used to connect the fiscal display to a personal computer. If a cash register model is a computer system, then a tax application should also include a conclusion of the authorised state body for informatisation and communication on the compliance of the computer system with technical requirements, and the documents listed in subpoints 1), 2), 3), 5), 6) and 7) of this point. The procedure for issuing a conclusion shall be established by the authorised state body for informatisation and communication together with the authorised body. 4. A cash register model shall be included in a state register provided the following conditions are met simultaneously: 1) 2) 5. the tax application and materials referred to in point 3 of this article are available; the cash register model meets the technical requirements established by the authorised body.
2.
3.
4) 5)
6) 7)
8) 9)
The compliance of a cash register model with technical requirements shall be determined by the authorised body by testing a sample cash register model in the presence of representatives of the person initiating the inclusion of the cash register model in the state register. To establish the compliance of a cash register model with technical requirements the authorised body shall be entitled to engage experts from other state bodies and from other persons (except for the persons initiating the inclusion of the cash register model in the state register, and any related persons). A decision to include (refuse to include) cash register models in the state register shall be adopted by the authorised body within 30 working days from the date a tax application is received.
6.
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If the inclusion of a cash register model in the state register is refused, the authorised body shall notify the application of the reason for this in writing. 7. The authorised body shall exclude a cash register model from the state register if the cash register model does not meet technical requirements. A tax body shall notify a taxpayer applying the cash register model in question of a decision to remove the cash register model from the state register within six months before the cash register model is excluded from the state register.
Article 652. Tax Control of Compliance with the Procedure for applying Cash Registers The tax bodies shall: 1) 2) monitor compliance with the procedure for applying cash registers; use data stored in the fiscal memory units of cash registers with fiscal memory when performing tax audits to verify whether a taxpayer has fulfilled tax obligations to pay taxes and make other obligatory payments to the budget.
Chapter 91. Other forms of tax control

Article 653. Control of Excisable Goods by marking Certain Excisable Goods and establishing Excise Posts 1. The tax bodies shall control excisable goods by ensuring that producers and importers of excisable goods, bankrupt and rehabilitation managers, when realising a debtors property (assets), observe the procedure for marking certain excisable goods determined by this article, and also by establishing excisable posts. Alcoholic products, except for wine materials and beer, shall be labelled with inventory control stamps, while tobacco items shall be subject to excise stamps. Producers and importers of excisable goods, bankrupt and rehabilitation managers shall be responsible for excise stamps when realising a debtors property (assets). The following types of alcoholic products shall not be labelled with inventory control stamps and tobacco items excise stamps: 1) 2) those exported from the Republic of Kazakhstan; those imported into the Republic of Kazakhstan under duty-free shop and customs warehouse customs regimes; those imported into the Republic of Kazakhstan under the temporary import of goods and vehicles) and the temporary export of goods and vehicles customs regimes in single units for advertising and (or) demonstration purposes; those crossing the customs border of the Republic of Kazakhstan under the transit of goods customs regime; those imported by individuals into the customs territory of the Republic of Kazakhstan within the limits of duty-free allowances established by the Government of the Republic of Kazakhstan.
2.
3.
4.
3)
4)
5)
5.
New inventory control and excise duty stamps may be placed on the excisable goods indicated in point 2 of this article once every two years, within the deadline determined by the Government of the Republic of Kazakhstan.
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6.
In accordance with this point: 1) the rules for labelling (relabeling) certain types of excisable goods shall be approved by the Government of the Republic of Kazakhstan; the rules for receiving, recording, storing and issuing excise duty and inventory control stamps shall be approved by the authorised body.
2)
7.
The tax bodies shall establish excise posts at the site of a taxpayer producing certain types of excisable goods. The authorised body shall approve the procedure for organising the activities of an excise post. The location and number of employees of an excise post, its operating schedule in accordance with the taxpayers operating regime shall be determined by a tax body. The employees of an excise post shall be formed from officials of a tax body.
8. 9.
10. An official of a tax body working at an excise post shall ensure: 1) a taxpayer complies with the requirements of legislation of the Republic of Kazakhstan governing the production and realisation of excisable goods; a taxpayer has a license to perform the relevant activities; excisable goods are measured or realised (poured) through measuring apparatus, and have been sealed; a taxpayer observes the procedure for marking certain excisable goods; excise duty rates have been applied correctly on excisable goods and paid to the budget on time; the movement of basic raw materials for the production of excisable goods, secondary materials, finished products, inventory control or excise stamps.
2) 3)
4) 5)
6)
11. An official of a tax body working at an excise post shall be entitled to: 1) inspect, in accordance with the requirements of current legislation of the Republic of Kazakhstan, a taxpayers administrative, product, warehouse, trading or subsidiary premises that are used to produce, store and realise excisable goods; participate in the realisation of excisable goods; inspect freight vehicles leaving a taxpayers site.
2) 3)
12. An official of a tax body working at an excise post shall have other rights stipulated by the procedure for organising the activities of an excise post. Article 654. Transfer Pricing Control The bodies of a tax service shall monitor transfer pricing in transactions in accordance with the procedure and in those cases stipulated by transfer pricing legislation of the Republic of Kazakhstan. Article 655. Monitoring of Compliance with the Procedure for recording, storing, valuing, further using and realising Property appropriated by the State 1. A tax body shall monitor compliance with the procedure for recording, storing, valuing, further using and realising property appropriated (to be appropriated) by the state, and supervise the complete and timely payment to the budget of funds should it be realised, and also the procedure for
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transferring property appropriated (to be appropriated) by the state, in accordance with the procedure and the deadline established by the authorised body. 2. The procedure for recording, storing, valuing, further using and realising property appropriated (to be appropriated) by the state shall be determined by the Government of the Republic of Kazakhstan.
Article 656. Monitoring of the Activities of Authorised State and Local Executive Bodies 1. Unless otherwise established by this article, the bodies of the tax service shall monitor authorised state and local executive bodies (for the purposes of this article authorised state bodies) with respect to the correct calculation, complete collection and timely transfer of taxes on property, vehicles and land tax, and other obligatory payments to the budget in accordance with the procedure established by chapter 89 of this Code. The basis for monitoring the activities of the authorised state bodies with respect to the correct calculation, complete collection and timely transfer of other obligatory payments to the budget shall be a decision of the bodies of the tax service to assign a tax audit, in the format established by the authorised body and which should contain the following: 1) 2) 3) 4) the registration date and number of a decision in the bodies of the tax service; the full name and identification number of the authorised state body being monitored; the grounds for assigning an audit; the position, surname, name and patronymic (if applicable) of the officials of the bodies of the tax service conducting an audit, as well as specialists of other state bodies engaged in monitoring purposes in accordance with this Code; the audit time frame; the audited period; the type of other obligatory payment; the note of the authorised state body on the receipt of and familiarisation with a decision. Before an audit is due to start a decision should undergo state registration with the body for the statistical recording and monitoring of acts on audit assignment. 2. Audit participants shall be officials of the bodies of the tax service referred to in a decision to assign an audit, other individuals engaged to conduct an audit in accordance with this Code, and the authorised state bodies. During monitoring activities the authorised state bodies shall work with the bodies of the tax service to obtain documents and information required to carry out monitoring, provide officials of the bodies of the tax service with access to investigate objects of taxation. In this respect, an audit of the authorised state bodies may be conducted simultaneously with one or several types of other obligatory payments. 3. An audit time frame should not exceed 30 working days from the date an authorised state body is served with a decision to assign an audit. This time frame may be extended to 50 working days by the body of the tax service that assigned the audit. An audit time frame shall be suspended for periods between the date the bodies of the tax service request documents be filed are served to the authorised state body and the date the authorised state body files documents requested during an audit, and also between the date a body of the tax service sends an enquiry to other regional tax bodies, state bodies, banks and organisations performing certain banking operations, and other organisations operating in the Republic of Kazakhstan, and the date information and documents related to the above enquiry are received. 426
5) 6) 7) 8)
4.
5.
When an audit period is suspended (reinstated), the bodies of the tax service shall notify the authorised state bodies in writing on the suspension (reinstatement) of audit periods making reference to the suspension (reinstatement) date and the grounds for the suspension (reinstatement). After concluding an audit, an official of a body of the tax service shall compile an inspection act that makes reference to: 1) 2) 3) the audit location, the compilation date of the inspection act; the name of the body of the tax service; the positions, surnames, names, patronymics (if applicable) of the official of the body of the tax service conducting an audit; the full name, identification number and address of the authorised state body; the surnames, names, patronymics (if applicable) of the manager and officials of the authorised state body; the positions, surnames, names and patronymics (if applicable) of the officials of the authorised state body, with the knowledge and in the presence of whom the audit was conducted; information on a previous audit and measures adopted to rectify previous breaches; the results of the audit conducted.
6.
4) 5)
6)
7) 8) 7.
Where breaches are discovered after an audit of the accurate calculation, full recovery and timely transfer of other obligatory payments to the budget, the bodies of the tax service shall issue a demand to rectify breaches of tax legislation of the Republic of Kazakhstan. A notice sent by a body of the tax service in hard copy format to the authorised state body on the latters need to rectify the breaches referred to in an inspection act shall be recognised as a request to rectify breaches of tax legislation of the Republic of Kazakhstan (hereafter demand). The format of the request shall be established by the authorised body. A request shall show: the full name of the authorised body; an identification number; the grounds for sending the request; the date a request is sent; the amount to be recovered by the authorised state body to the budget. A request should be sent within five working days from the date an inspection act is sent to the first manager (deputy manager) of the authorised state body personally against a signature, or by other means confirming dispatch and receipt. A request shall be executed by the authorised state body within 30 working days from day it was served (received).
8.
Authorised state bodies responsible for the accurate calculation, complete collection and timely transfer of other obligatory payments to the budget shall recover tax debts discovered after completing control. The authorised state bodies shall be liable for the accurate calculation, complete collection and timely transfer of other obligatory payments to the budget in accordance with legislation of the Republic of Kazakhstan. 427
9.
Chapter 92. Taxpayer assistance

Article 657. Taxpayer Assistance The bodies of the tax service shall provide assistance to taxpayers (tax agents) by: 1) 2) promoting tax legislation of the Republic of Kazakhstan; providing software to file electronic tax reporting through the generation of an electronic payment document to pay taxes and make other obligatory payments to the budget; creating and developing a network of terminals to help taxpayers (tax agents) review the status of requested documents; providing information on the procedure for making budget settlements to fulfil tax obligations; creating and developing a network of centres to work with notifications of the bodies of the tax service; ensuring that sites of the bodies of the tax service are operational; providing assistance (except for material) in the development of a network of automated teller machines and other electronic devices to pay taxes and make other obligatory payments to the budget, social contributions and transfer obligatory pension contributions.
3)
4) 5)
6) 7)
Article 658. Promotion of Tax Legislation 1. The aim of promoting tax legislation shall be to increase taxpayer (tax agent) awareness of tax issues, including by informing them of the provision of tax legislation of the Republic of Kazakhstan, amendments and additions introduced to tax legislation of the Republic of Kazakhstan, and also information on issues related to the fulfilment of a tax obligation. The bodies of the tax service shall promote tax legislation of the Republic of Kazakhstan by holding seminars, meetings or sessions with taxpayers (tax agents), placing information using the mass media, information stands, booklets and other printed materials, as well as by using video-, audio and other technical tools to distribute information such as telephone and mobile telephone communication.
2.
Article 659. Provision of Free Software to file Electronic Tax Reporting 1. A body of the tax service shall provide a taxpayer (tax agent) with software free of charge to file electronic tax reporting. Software to file electronic tax reporting may be provided to taxpayers (tax agents) electronically following a personal appearance at a tax body and (or) by placing it on the website of the bodies of the tax service. Software for filing tax reporting electronically shall be provided together with installation materials. Software shall help the generation of an electronic payment documents to pay taxes and make other obligatory payments to the budget.
2.
3. 4.
Article 660. Development of a Network of Terminals to help Taxpayers review the Status of Requested Documents 1. The bodies of the tax service shall ensure the development of a network of terminal to help taxpayers (tax agents) review the state of the following requested documents: 1) certificate of (no) outstanding tax liability, overdue obligatory pension contributions and social contributions; 428
2)
excerpts from a personal account on the status of budget settlements with respect to the fulfilment of a tax obligation.
2.
Access to a taxpayer (tax agent) to review the status of requested documents shall be provided through terminals installed in the tax bodies. Access to terminals shall be provided on working days.
3.
Article 661. Provision of Information on the Procedure for making Budget settlements to fulfil a tax obligation The bodies of the tax service shall provide taxpayers (tax agents) with information on the procedure for making budget settlements to fulfil a tax obligations, including information on the procedure for completing a payment document and details needed to complete a payment document. Article 662. Centres for working with Notifications of the Bodies of the Tax Service 1. The bodies of the tax service shall create and develop centres for working with the notifications of the bodies of the tax service stipulated by subpoints 1) and 5) of point 2 of article 607 of this Code. Assistance shall be provided by the centres in question through dedicated telephone lines and also by a taxpayers (tax agents) direct address to a tax body. Telephone calls to a centre to receive information shall be made free of charge. The centres shall operate on working days.
2.
3. 4.
Article 663. Support of the Functioning of the Bodies of the Tax Services Websites 1. The bodies of the tax service shall provide assistance to taxpayers (tax agents) by providing information free of charge through their websites. Information and instruction materials shall be placed on the websites of the bodies of the tax service to assist taxpayers (tax agents) to fulfil a tax obligation. The websites of the bodies of the tax service shall function 24-hours a day without rest days and public holidays.
2.
3.
Article 664. Assistance (except for Material) in the Development of a Network of Automated Teller Machines and Other Electronic Devices to pay Taxes and make Other Obligatory Payments to the Budget, Social Contributions and transfer Obligatory Pension Contributions 1. The bodies of the tax service shall provide assistance (except for material) in the development of a network of automated teller machines and other electronic devices that facilitate: 1) the payment of taxes and other obligatory payments to the budget, social contributions, the transfer of obligatory pension contributions; the receipt of information on an amount of tax payable to the budget; the receipt of a payment document with details for a payment of taxes and other obligatory payments to the budget.
2) 3)
2.
The operations referred to in point 1 of this article shall be conducted through automated teller machines and other electronic devices in public places that are connected to the bodies of the tax services, banks and organisations performing certain banking operations.
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Article 665. Procedure for the Bodies of the Tax Service to distribute Information on Assistance provided to Taxpayers (Tax Agents) in their Fulfil of Tax Obligations The bodies of the tax service shall distribute information on assistance provided to taxpayers (tax agents) by placing information: 1) 2) in the offices of the tax bodies; through the mass media.
Section 21. Appeal against tax audit results and the actions (inaction) of officials of the bodies of the tax service Chapter 93. Procedure for appealing notifications of tax audit results Article 666. Bodies reviewing Taxpayer (Tax Agent) Appeals against Notifications of Tax Audit Results
1. In accordance with the provisions stipulated by this Code, any appeal by a taxpayer (tax agent) against a notification of tax audit results shall be considered by a higher body of the tax service. A taxpayers (tax agents) dispute against a notification of tax audit results conducted by the officials of the authorised state body shall be considered directly by the authorised body in accordance with the procedure established by articles 667675 of this Code. A taxpayer (tax agent) shall be entitled to appeal against a notification of tax audit results in court.
2.
3.
Article 667. Procedure for a Taxpayer (Tax Agent) to file an Appeal 1. A taxpayers (tax agents) appeal against a notification of tax audit results shall be filed with a higher body of the tax services within 30 working days from the date on which notification is served to the taxpayer (tax agent). In this respect, a taxpayer (tax agent) should send a copy of an appeal to the tax body that conducted an audit. 2. If the deadline established by point 1 of this article is missed with good reason, the higher body of the tax service reviewing the appeal may, upon application by the taxpayer (tax agent) filing the appeal, restore the deadline. A higher body of the tax service shall recognise the illness of an individual being audited, and also a taxpayers (tax agents) manager and (or) chief accountant (if applicable) as a legitimate excuse to restore a missed appeal filing deadline. The provisions of this point shall apply to individuals being audited, and also to taxpayers (tax agents) whose organisational structure does not provide for individuals deputising the above individuals during their absence. In this respect, a taxpayer (tax agent) should attach a document to a petition to restore a missed appeal filing deadline confirming the illness of the individuals indicated in part 1 of this point, and a document establishing the organisational structure of the taxpayer (tax agent). 4. A taxpayers (tax agents) appeal that has been filed to restore a missed appeal filing deadline shall be approved by a higher body of the tax service provided the taxpayer (tax agent) has filed an appeal and petition within 10 working days from the day the illness of the individuals referred to in point 3 of this article ends.
3.
430
5.
Any appeal filed by a taxpayer (tax agent) with a higher body of the tax service may, prior to any decision being made on that appeal, revoke the appeal on the basis of a written application. A taxpayers (tax agents) revocation of an appeal shall not deprive a taxpayer of the right to file a repeat appeal, provided that the deadlines established by point 1 of this article are met.
Article 668. Form and Content of a Taxpayer (Tax Agent) Appeal 1. 2. A taxpayer (tax agent) shall file an appeal in writing. An appeal shall include the following information: 1) 2) 3) the date the taxpayer (tax agent) files the appeal; the title of the higher body of the tax service with which the appeal has been filed; the surname, first name and patronymic (if applicable) or full title of the individual filing the appeal, and their place of residence (location); an identification number; the title of the tax bodies that performed the tax audit; the circumstances used by the person lodging the appeal to justify its claims and evidence supporting those circumstances; a list of accompanying documents.
4) 5) 6)
7) 3. 4. 5. 1) 2) 3)
An appeal may show other information of relevance for the resolution of a dispute. An appeal shall be signed by a taxpayer (tax agent) or its representative. An appeal shall be accompanied by: copies of an act and notification; documents confirming the circumstances on which a taxpayer (tax agent) is basing claims; other documents relevant to the case.
Article 669. Refusal to consider an Appeal 1. A higher body of the tax service shall refuse to consider a taxpayers (tax agents) appeal if: 1) the taxpayer (tax agent) files an appeal after the deadline established by point 1 of article 667 of this Code; the form and content of a taxpayers (tax agents) appeal do not meet the requirements established by article 668 of this Code; the appeal was filed for the taxpayer (tax agent) by an individual who is not its representative; the taxpayer (tax agent) has filed a court claim on issues included in the appeal.
2)
3) 4) 2.
A higher body of the tax service shall notify a taxpayer (tax agent) in writing of a refusal to consider an appeal within 10 working days from the date its receives the appeal or the taxpayer (tax agent) files a writ to a court on the issues set forth in the appeal. A refusal of a higher body of the tax service to consider an appeal shall not mean that the taxpayer (tax agent) loses its right within the deadline established by point 1 of article 667 of this Code to refile an appeal, if the taxpayer (tax agent) has corrected its breaches.
3.
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Article 670. Procedure for considering an Appeal sent to a Higher Body of the Tax Service 1. A reasoned decision shall be taken on a taxpayers (tax agents) appeal within 30 working days from the date the appeal is registered, and on an appeal from major taxpayers subject to monitoring within 45 working days from the date the appeal is registered, except for the cases stipulated by point 2 and subpoint 2) of point 6 of this article. A higher body of the tax service, when considering a taxpayers (tax agents) appeal, shall be entitled to schedule an additional audit, as well as a repeat additional audit in accordance with the procedure established by article 675 of this Code. The appeal consideration period may be suspended in accordance with the procedure established by article 672 of this Code. An appeal shall be considered to the extent of the issues being disputed by a taxpayer (tax agent). If a taxpayer (tax agent) files for appeal consideration documents not filed by it during a tax audit, a higher body of the tax service shall be entitled to establish the accuracy of the documents during an additional audit. A higher body of the tax service, when considering a taxpayers (tax agents) appeal, shall be entitled when necessary to: 1) send enquiries to the taxpayer (tax agent) and (or) the tax body that conducted the tax audit, on the provision of additional written information or explanations on issues expressed in the appeal; send enquiries to the state bodies and to legal entities with 100% state participation, and also to the competent bodies of foreign countries on issues within the competency of the bodies and legal entities in questions; hold meetings with the taxpayer (tax agent) regarding issues set forth in the appeal; request explanations on the relevant issues from the employees of bodies of the tax services who participated in a tax audit.
2.
3.
4. 5.
6.
2)
3) 4)
7.
It shall be forbidden to interfere in the activities of a higher body of the tax service while it exercises its authority to consider an appeal, or influence officials considering an appeal.
Article 671. Decision on the Consideration of an Appeal 1. After considering an appeal on its merits, a higher body of the tax service shall issue a justified written decision and send or serve it to a taxpayer (tax agent), as well as a copy to the tax body that conducted an audit. After considering a taxpayers (tax agents) appeal against a notification of tax audit results, a higher tax body shall issue one of the following decisions: 1) 2) 3. to leave the disputed notification of tax audit results unchanged, and not approve the appeal; annul the disputed notification of tax audit results in full or in part.
2.
If a disputed notification is partially annulled after consideration of an appeal, the body of the tax service that conducted the tax audit shall issue a notification on the consideration of a taxpayers (tax agents) appeal against a notification of tax audit results and (or) a decision of a higher body of the tax service issued after consideration of an appeal against a notification, and shall send it to the taxpayer (tax agent) within the deadline established by article 607 of this Code. A decision of the higher body of the tax service issued on the basis and in accordance with the procedure established by this Code shall be binding for the tax bodies.
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Article 672. Suspension of the Consideration of an Appeal 1. The consideration of an appeal shall be suspended if: 1) 2) conducting an additional or repeat additional audit until they are completed; sending an enquiry to the state bodies and to legal entities with 100% state participation, and also to the competent bodies of foreign countries before a response is received.
2.
A higher body of the tax service shall notify a taxpayer (tax agent) in writing that it has suspended consideration of an appeal, also indicating the reasons for the suspension.
Article 673. Form and Content of a Decision of a Higher Body of the Tax Service A decision of a higher body of the tax service following consideration of an appeal shall contain the following information: 1) 2) 3) the date a decision was taken; the title of the body of the tax service considering the taxpayers (tax agents) appeal; the surname, first name and patronymic (if applicable) or full title of the taxpayer (tax agent) filing the appeal; an identification number; a brief description of the content of the disputed notification of tax audit results; the substance of the appeal; substantiation with reference to the provisions of legislation of the Republic of Kazakhstan used by a higher body of the tax service to adopt a decision on the appeal.
4) 5) 6) 7)
Article 674. Consequences of filing an Appeal with a Higher Body of the Tax Service or Court 1. A taxpayer (tax agent) filing an appeal with a higher body of the tax service or court shall result in the suspension of the execution of the contested part of a notification of tax audit results. If an appeal is filed with a higher body of the tax service, the execution of the contested part of a notification of tax audit results shall be suspended until the higher body of the tax service adopts a written decision and the period specified in point 1 of article 677 of this Code has passed. If a taxpayer (tax agent) files an appeal with a court, execution of the contested part of a notification of tax audit results shall be suspended until the relevant court act comes into force. 3. Where a notification of tax audit results is annulled, the corresponding act of tax audit shall also be made void with respect to the disputed part of the notification of tax audit results.
2.
Article 675. Procedure for scheduling and conducting an Additional Audit 1. Where necessary, a higher body of the tax service shall, when considering a taxpayers (tax agents) appeal, be entitled to schedule an additional audit. A document scheduling an additional audit by a higher body of the tax service shall be drawn up in writing and should indicate the specific issues to be audited. In this respect, an additional audit may not scheduled to the body of the tax service that conducted a tax audit that is being disputed, except for the case when a disputed tax audit was conducted by the authorised body.
2.
433
3.
An additional audit shall be conducted in accordance with the procedure and within the deadlines established by this Code. In this respect, an additional audit should be started no later than five working days from the date a body of the tax service receives a document from a higher body of the tax service requesting it to conduct the audit. Where data is unclear or incomplete, or where new issues arise relating to circumstances and documents previously verified during an additional audit, a higher body of the tax service shall be entitled to reschedule the additional audit. A decision on the consideration of an appeal shall be issued taking into account the results of an additional audit and (or) a repeat additional audit. In this respect, if a higher body of the tax service does not agree with the results of these audits, it shall be entitled not to consider them when adopting a decision on an appeal. Bearing this in mind, any such non-concurrence should be justified.
4.
5.
Chapter 94. Procedure for reconsidering a decision on the results of the consideration of a taxpayers (tax agents) appeal
Article 676. Body responsible for reconsidering a Decision on the Results of the Consideration of a Taxpayers (Tax Agents) Appeal In accordance with the provisions stipulated by this Code a decision on the consideration of a taxpayers (tax agents) appeal against a notification of tax audit results shall be reconsidered by the authorised body. Article 677. Procedure for filing an Appeal with the Authorised Body 1. An appeal shall be filed with the authorised body within 30 working days from the moment a taxpayer (tax agent) receives a decision on the consideration of its appeal or in the absence of a decision from a higher body of the tax service by the deadline set forth in point 1 of article 670 of this Code. In this respect, a taxpayer (tax agent) should send a copy of an appeal to the higher body of the tax service considering the taxpayers appeal. 2. If the deadline established by point 1 of this article is missed with a legitimate excuse, the higher body of the tax service reviewing the appeal may, upon petition from the taxpayer (tax agent) filing the appeal, restore the deadline. A higher body of the tax service shall recognise the illness of an individual being audited, and also a taxpayers (tax agents) manager and (or) chief accountant (if applicable) as a legitimate excuse to restore a missed appeal filing deadline. The provisions of this point shall apply to individuals being audited, and also to taxpayers (tax agents) whose organisational structure does not provide for individuals deputising the above individuals during their absence. In this respect, a taxpayer (tax agent) should attach a document to a petition to restore a missed appeal filing deadline confirming the illness of the individuals in part 1 of this point, and a document establishing the organisational structure of the taxpayer (tax agent). 4. A taxpayers (tax agents) appeal that has been filed to restore a missed appeal filing deadline shall be approved by a higher body of the tax service provided the taxpayer (tax agent) has filed an appeal and petition within 10 working days from the day the illness of the individuals referred to in point 3 of this article ends. An appeal shall be filed with the authorised body in accordance with the procedure stipulated by article 667 of this Code, taking into account the provisions of this article.
3.
5.
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Article 678. Form and Content of an Appeal sent to the Authorised Body 1. An appeal sent to the authorised body should meet the requirements for form and content as established by article 668 of this Code. A copy of the decision of the higher body of the tax service considering a taxpayers (tax agents) appeal should be appended to an appeal forwarded to the authorised body.
2.
Article 679. Refusal to consider an Appeal 1. The authorised body shall refuse to consider an appeal in those cases and in accordance with the procedure established by article 669 of this Code, taking into account the provisions of this article. The authorised bodys refusal to consider an appeal shall not mean the taxpayer (tax agent) loses its right to re-file an appeal if it rectifies its breaches within the deadline established by point 1 of article 677 of this Code.
2.
Article 680. Procedure for considering an Appeal sent to the Authorised Body 1. An appeal sent to the authorised body, which was filed in accordance with the procedure established by this Code, shall be considered by the authorised state body within no more than 30 working days from the day on which it is filed, while an appeal of major taxpayer subject to monitoring shall be considered for no more than 45 working days from the date of registration, except for those cases stipulated by point 2 and subpoint 2) of point 6 of article 670 of this Code. The authorised body shall consider an appeal in accordance with the procedure stipulated by article 670 of this Code, taking into account the provisions of this article. It shall be forbidden to interfere in the activities of the authorised body when it is performing its duties to consider an appeal, and influence officials participating in the consideration of an appeal.
2.
3.
Article 681. Adoption of a Decision on an Appeal sent to the Authorised Body 1. After considering an appeal on its merits, the authorised body shall issued a justified written decision and send or serve it to a taxpayer (tax agent), and send a copy to the tax body considering the taxpayers (tax agents) appeal. After considering an appeal, the authorised state body shall be entitled to: 1) 2) 3) 3. leave the appeal unchanged; revoke the disputed decisions of a tax body; amend the decision or issue a new decision.
2.
A decision of the authorised body issued based on and in accordance with the procedure established by this Code shall be binding for the tax bodies.
Article 682. Suspension of the Consideration of an Appeal The consideration of an appeal sent to the authorised body shall be suspended in those cases and in accordance with the procedure established by article 672 of this Code. Article 683. Form and Content of a Decision of the Authorised Body The following shall be included in a decision of the authorised body: 1) the date a decision was taken;
435
2)
the surname, name, patronymic (if applicable) or full title of the taxpayer (tax agent) filing the appeal; an identification number; a brief description of a disputed decision of a higher body of the tax service; the main essence of the appeal; grounds and conclusions with reference to provisions of legislation of the Republic of Kazakhstan.
3) 4) 5) 6)
Article 684. Consequences of filing an Appeal with the Authorised Body 1. If an appeal is filed to the authorised state body, execution of the disputed part of a notification of tax audit results shall be suspended until a written decision is issued. If a notification of tax audit results is annulled, only the disputed part of the notification of tax audit results being disputed shall be annulled.
2.
Article 685. Procedure for scheduling and conducting an Additional Audit 1. When considering a taxpayers (tax agents) appeal, the authorised body, if necessary, shall be entitled to schedule an additional audit. An additional audit shall be scheduled and conducted in accordance with the procedure established by article 675 of this Code, taking into account the provisions of this article. The authorised body may not schedule an additional audit to a tax body that conducted a tax audit where the results were disputed, or to a tax body that considered a taxpayers appeal against a notification of tax audit results. An appeal decision sent to the authorised body shall be issued taking into account the results of an additional and (or) repeat additional audit. In this respect, if the authorised body does not agree with the results of the above audits, it shall be entitled not to consider them when adopting an appeal decision. However, if the authorised body does not agree, its decision should be justified.
2.
3.
4.
Chapter 95. Procedure for appealing the actions (inaction) of officials of the bodies of the tax service
Article 686. Right to Appeal A taxpayer or an authorised representative shall be entitled to appeal against the actions (inaction) of officials of the bodies of the tax service to a higher body of the tax service or to a court. Article 687. Appeal Procedure The actions (inaction) of officials of the bodies of the tax service shall be disputed in accordance with the procedure stipulated by laws of the Republic of Kazakhstan. Article 688. Liability of the Officials of the Bodies of the Tax Service for violating Tax Legislation Officials of the bodies of the tax service guilty of violating tax legislation shall be held liable in accordance with the procedure established by laws of the Republic of Kazakhstan.
President of the Republic of Kazakhstan
N. Nazarbayev
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Contacts
Kazakhstan Tax & Legal Team Almaty
Vladimir Kononenko Partner +7 727 2581340 ext. 2755 vkononenko@deloitte.kz Michael Sturdivant Partner +7 727 2581340 ext. 2717 msturdivant@deloitte.kz Gaukhar Iskakbayeva Partner +7 727 2581340 ext. 2765 giskakbayeva@deloitte.kz Dina Turkina Partner +7 727 2581340 ext. 2767 dturkina@deloitte.kz Dilya Osmanova Partner +7 727 2581340 ext. 2786 dosmanova@deloitte.kz
Atyrau/ Aktau
Russell Maynard Partner +7 727 2581340 ext. 4184 rmaynard@deloitte.kz
Astana
Andrey Zakharchuk Manager +7 7172 580480 azakharchuk@deloitte.kz
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Code of the Republic of Kazakhstan

www.deloitte.kz Member of Deloitte Touche Tohmatsu

www.deloitte.kz Member of Deloitte Touche Tohmatsu

TAX PAYMENT DEADLINE

www.deloitte.kz Member of Deloitte Touche Tohmatsu

133 135 135 136

143 145 145 146

www.deloitte.kz Member of Deloitte Touche Tohmatsu

149 150 151 153

Chapter 30. Size of taxable turnover

Chapter 40. Taxation of the import of excisable goods

Section 11. Taxation of subsoil users Chapter 42. General provisions

Chapter 43. Bonuses

2. COMMERCIAL DISCOVERY BONUS

Chapter 44. Payment to reimburse historical costs

Chapter 45. Minerals extraction tax

GENERAL PROVISIONS PAYERS

1. MINERALS EXTRACTION TAX ON OIL

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215 215 215 217 217 218

OBJECT OF TAXATION TAX BASE RATES OF MINERALS EXTRACTION TAX

3. MINERALS EXTRACTION TAX FOR COMMONLY OCCURRING MINERAL RESOURCES, UNDERGROUND

OBJECT OF TAXATION TAX BASE RATES OF MINERALS EXTRACTION TAX

4. TAX PERIOD, TAX DECLARATION AND PAYMENT DEADLINE

Chapter 46. Excess profits tax

Section 12. Social tax Chapter 47. General provisions

Chapter 48. Procedure for calculating and paying tax

Chapter 49. Tax period and tax declaration

Section 13. Tax on means of transport Chapter 50. General provisions

TAXPAYERS OBJECTS OF TAXATION

ARTICLE 367. ARTICLE 368. ARTICLE 369.

TAX RATES TAX CALCULATION PROCEDURE TAX PAYMENT DEADLINE

Chapter 52. Tax period and tax declaration

TAX PERIOD TAX REPORTING

Section 14. Land tax Chapter 53. General provisions

Chapter 54. Tax rates

Chapter 58. Tax on individuals property

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Section 17. Fixed tax Chapter 60. Fixed tax

Section 18. Special tax regime

TYPES OF SPECIAL TAX REGIMES

GENERAL PROVISIONS CONDITIONS FOR APPLYING A SPECIAL TAX REGIME

2. PATENT SPECIAL TAX REGIME

3. SIMPLIFIED DECLARATION SPECIAL TAX REGIME

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Section 19. Other obligatory payments Chapter 64. Registration fees

Chapter 66. Auction fee

Chapter 69. Charge for the use of land plots

Chapter 70. Charge for the use of surface water resources

Chapter 71. Charge for environmental emissions

Chapter 72. Charge for the use of wildlife

Chapter 73. Charge for the use of the forest

Chapter 75. Charge for the use of the radio-frequency spectrum

Chapter 77. Charge for the use of navigable waterways

Chapter 78. Charge for the placement of outdoor (visual) advertising

Chapter 79. State duty 1. STATE DUTY

GENERAL PROVISIONS PAYERS OF STATE DUTY

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328 329 330 331

Chapter 81. Registration of taxpayers with the tax bodies

2. RECORD OF REGISTRATION OF INDIVIDUAL ENTREPRENEURS, PRIVATE NOTARIES AND ADVOCATES

3. RECORD OF REGISTRATION OF PAYERS OF VALUE ADDED TAX