THE CODE
of the
On Taxes and other obligatory
Payments to Revenue
(Tax Code)
(With
amendments and additions introduced by the laws of the Republic of Kazakhstan
dated from 21.03.2002, ¹ 310-II Law RK, ¹ 312-II
Law RK; from 23.11.2002, ¹358-II Law RK; from 08.01.2003, ¹ 375-II Law RK; from
13.03.2003, ¹394-II Law RK; from 16.05.2003,
¹416-II Law RK; from 04.07.2003, ¹475-II Law RK; from 10.07.2003, ¹483-II Law
RK; from 29.11.2003 ¹ 500-II Law RK; from 29.12.2003, ¹ 512-II Law RK; from
18.03.2004 ¹ 537-II Law RK; from 05.07.2004, ¹ 568-II Law RK; from 22.10.2004 ¹
601-II Law RK; from13.12.2004, ¹ 11-III Law RK; from 20.12.2004 ¹ 13-III Law
RK; from 28.12.2004, ¹ 24-III Law RK; from 15.04.2005 ¹ 45-II Law RK; from
22.11.2005 ¹ 89-III Law RK; from 05.07.2005 ¹ 90-III Law RK; from 23.12.2005 ¹
107-III Law RK; from 10.01.2006 ¹ 115-III
Law RK; from 10.01.2006 ¹ 116-III Law RK; from 31.01.2006 ¹ 125-III Law
RK; from 20.02.2006 ¹ 127-III Law RK; from 05.05.2006
¹ 139-III Law RK; from 06.05.2006 ¹
140-III Law RK; from 05.06.2006 ¹ 146-III Law RK; from 22.06.2006 ¹
147-III Law RK; from 05.07.2006 ¹ 156-III Law RK; from 05.07.2006 ¹ 158-III Law
RK; from 05.07.2006 ¹ 164-III Law RK; from 07.07.2006 ¹ 176-III Law RK; from
07.07.2006 ¹ 177-III Law RK; from 07.07.2006 ¹ 182-III Law RK; from 11.12.2006
¹ 201-III Law RK; from 09.01.2007 ¹ 213-III
Law RK; from 12.01.2007 ¹ 222-III Law RK*)
1. GENERAL
SECTION
Part
1. General provisions
Chapter 1. BASIC PROVISIONS
Article 1.
Relations regulated by this Code
This Code
shall regulate relations among government authorities with regard to the
establishment, introduction, and procedure for the calculation and payment of
taxes and other mandatory payments to the budget, as well as relations between
the state and the taxpayer involving the fulfillment of tax obligations.
Article 2.
Tax legislation of the
1. The tax
legislation of the
2. No one may
be assigned the obligation to pay taxes and make other mandatory payments to
the budget that are not provided for by this Code.
3. Taxes and
other mandatory payments to the budget shall be established, introduced,
amended, or repealed following the procedure and under the conditions
established by this Code.
4. If there
should be a contradiction between this Code and other legislative acts of the
5. If an
international agreement that has been ratified by the
Article 3.
Scope of tax legislation
1. Tax
legislation shall apply throughout the entire territory of the
2. Legislative
acts of the Republic of Kazakhstan that make amendments and additions to this
Code with regard to the establishment of new taxes and other mandatory payments
to the budget may be adopted no later than November 1 of the current year and
may enter into force no earlier than January 1 of the year following the year
in which they are adopted.
Article 4.
Principles of taxation in the
1. Tax
legislation of the
2. The
provisions of the tax legislation of the
Article 5.
The principle of the compulsory nature of taxation
A taxpayer
shall be required to fulfill tax obligations in accordance with the tax
legislation in full and within the established deadlines.
Article 6.
The principle of the clear definition of taxation
Taxes and
other mandatory payments to the budget of the
Article 7.
The principle of fair taxation
1. Taxation
in the
2. The
granting of tax concessions of an individual nature shall be prohibited.
Article 8.
The principle of a single tax system
The tax
system of the
Article 9.
The principle of public tax legislation
Regulatory
legal acts that govern taxation matters shall be subject to mandatory
publication in official published materials.
Article 10.
Basic concepts used in this Code
1. The basic
concepts used in this Code for purposes of taxation shall be as follows:
1) charitable
assistance - property provided free of charge to individuals for the purpose of
giving them social support, to nonprofit organizations, as well as to the
organizations carrying out business in the social area for the purpose of
supporting their chartered activities;
2) interest
income - payments for credits; for property provided (received) under a
financial leasing in the form of interest in accordance with the legislative
act of the Republic of Kazakhstan regulating the financial leasing issues; on
investment (deposits); under savings insurance agreements; on debt securities -
the discount or coupon (with the discount or premium based on the value of the
initial placement and/or purchase value), payments under a bill;
3) winnings -
any type of income in kind or in monetary form received by taxpayers in
contests, competitions (Olympiads), festivals, lotteries, and drawings, including
drawings based on deposits and debt securities;
4) grant -
property provided free of charge by states, governments of states,
international and state organizations, foreign nongovernmental public
organizations, and foundations, whose activities are of a charitable and
international nature and are not in conflict with the Constitution of the
Republic of Kazakhstan, and that are included in a list established by the
Republic of Kazakhstan government based on findings of government bodies, to
the Republic of Kazakhstan, the Republic of Kazakhstan government, legal
entities, and also individuals; by foreigners and stateless persons to the
Republic of Kazakhstan and the Republic of Kazakhstan government to achieve
certain goals (objectives);
5) humanitarian
assistance - property provided free of charge to the Republic of Kazakhstan in
the form of food, consumer goods, technology, supplies, equipment, medical
equipment and medicines, and other articles sent from foreign countries and
international organizations to improve the living conditions and daily lives of
the population, and also to prevent and clean up emergencies of a military,
environmental, natural, and industrial nature, distributed by the Republic of
Kazakhstan government through authorized organizations;
6) dividends
- income payable on stocks; income payable on shares of the mutual investment
fund, with the exception of income on the shares if they are bought back by the
management company of the Fund; part of
net income distributed by a legal entity among its founders and partners;
income from the distribution of property in the event of the liquidation of a
legal entity, and also in the event that a founder or partner withdraws his
share interest in a legal entity, with the exception of property invested by a
founder or partner as a contribution to authorized capital {~};
{~};
7) discount
on debt securities - the difference between the face value and initial
placement value (not including coupon income) or purchase value of debt
securities (not including coupon income);
8) debt
securities - financial instruments certifying a loan arrangement. Debt
securities include government securities, bonds, and other securities
recognized as debt securities in accordance with the legislation of the
9) share
interest - a participating share held by individuals and legal entities in the
property of jointly created organizations and consortiums, with the exception
of joint-stock companies, and mutual investment funds;
10) other
mandatory payments - mandatory contributions of money (fees, duties, charges,
and payments) to the budget, effected in specified amounts;
11)
individual entrepreneur - an unincorporated resident or nonresident individual
who is engaged in entrepreneurial activity;
11-1)
engineering services - engineering and consultation services, work of research,
design, calculation and analytical character, preparation of feasibility study,
working-out of recommendations in the sphere of organization of manufacture and
administration, selling of goods;
12) annulled;
13) {~};
14) coupon on
debt securities (referred to hereinafter as coupon) - the amount paid (payable)
by an issuer in excess of the face value of debt securities in accordance with
the terms of issue;
15) person - an
individual or legal entity; individual - a citizen of the Republic of
Kazakhstan, a citizen of a foreign state, a stateless person; legal entity - an
organization created in accordance with the legislation of the Republic of
Kazakhstan or a foreign state (foreign legal entity). For the purposes of this
Code, a company, organization, or other corporate entity created in accordance
with the legislation of a foreign state shall be viewed as an independent legal
entity regardless of whether it has the status of a legal entity in the foreign
state in which it was established;
16) accrual
method - a tax accounting method according to which income and expenditures are
recorded as of the moment the work is performed, services are provided, goods
are shipped for the purpose of their sale, and property is received, regardless
of the time of payment;
17) taxes -
mandatory monetary payments to the budget which are established by the state
through legislation on a unilateral basis, which are effected in specific
amounts and are not subject to repayment, and for which no compensation is
provided;
18) tax debt
- the amount of arrears, as well as unpaid penalties and fines;
19) taxpayer
- a persons who is a payer of taxes and other mandatory payments to the budget;
20) tax agent
– an individual entrepreneur, a private notary, a lawyer, a legal entity as
well as a nonresident carrying out activities in the Republic of Kazakhstan
through a permanent establishment, an affiliate, a representative office, who
has been assigned responsibility in accordance with this Code for the
calculation, withholding, and transfer of taxes withheld at the source of
payment;
21) tax
regime - a set of requirements contained in the tax legislation which are
applied by a taxpayer in the calculation of all tax obligations with regard to
the payment of taxes and other mandatory payments to the budget established by
this Code;
22) arrears -
taxes and other mandatory payments to the budget that have been assessed and
not paid on time;
22-1) users
of mineral resourses – individuals and legal entities carrying out operations
on subsurface use, including oil operations, on the territory of the Republic
of Kazakhstan in accordance with the legislative acts of the Republic of
Kazakhstan;
22-2) fixed assets – tangible assets with the
service life for more than a year intended to be used in production, for
delivery of goods (work, services), leasing and (or) for administrative
purposes, as well as investment estate property, which are specified under the
legislation of the Republic of Kazakhstan on accounting and financial
statements and under the international standards of financial statements;
23) annulled;
24) premium
on debt securities - the difference between the initial placement value (not
including coupon income) or purchase value (not including coupon income) and
the face value of debt securities, the terms of issue of which call for payment
of a coupon;
25)
derivative securities - securities certifying rights to an underlying asset of
the given derivative securities. Derivative securities include: options, swaps,
forward contracts, futures contracts, depository receipts, warrants, and other
securities recognized as derivative securities in accordance with the
legislation of the
25-1)
employee - an individual who has labour relations with an employer and directly
does job under an individual labour (collective) agreement; a member of a
committee of directors of a joint-stock company, except for state employees;
26)
realization - the shipment of goods, performance of work, and rendering of
services with a view to their sale, exchange, or unrequited transfer, as well
as the transfer of pledged goods to the holder of the pledge;
27) royalties
- payment for:
the right to
use mineral resources in the process of the extraction of minerals and the
processing of industrial materials;
the use of or
right to use copyrights, software, patents, designs, or models, trademarks and
other similar kinds of rights; the use of or the right to use industrial,
commercial, or scientific research equipment; the use of know-how; the use of
or right to use motion pictures, video films, audio recordings, or other
recorded media; Marine vessels and air crafts rented under berbout-charter or
demise-charter agreements shall refer to industrial equipment.
27-1) market
rate of currency exchange:
average
weighted exchange rate of tenge to foreign currency, which has been set up at
the main session of the Kazakhstani stock exchange and determined according to
the procedure established by the Ministry of Finance of the
tenge rate to
foreign currency on which the auctions are not carried out at the stock
exchange of Kazakhstan, shall be calculated on the basis of cross rates
according to the procedure established by the Ministry of Finance of the
Republic of Kazakhstan together with the National Bank of the Republic of
Kazakhstan;
28) special
tax regime - a separate procedure for settlements with the budget established
for certain categories of taxpayers, which provides for the application of a
simplified procedure for the calculation and payment of certain types of taxes,
and payment for using a ground area, as well as for the submission of tax
reporting on these taxes;
28-1) sponsor
assistance - property granted on a gratuitous basis in order to spread
information about a person granting said assistance to:
individuals -
in the form of financial support (except for social) to take part in
competitions, exhibitions, parades and also to develop creative, scientific,
research, inventive activities, to increase the level of education and sports
skills;
non-profit
organizations - to realize their Charter objectives;
29)
structural subdivision of a legal entity - a subsidiary, representative office;
30) foreign
economic activity commodity nomenclature - a system of commodity classification
codes based on the harmonized commodity description and coding system;
31)
authorized government agency - a government body of the
32) authorized
agencies - government bodies of the
32-1)
services on processing of information - services on gathering and summarizing
of information, systematization of information collections and on providing a
user with the results of the information processing;
33)
electronic taxpayer document - an electronic document transmitted in the
established electronic format and certified with an electronic digital
signature of a taxpayer, after it has been received and its authenticity has
been confirmed;
34)
electronic digital signature of a taxpayer - consecution of electronic digital
symbols, which is created by the means of an electronic digital signature and
confirming the electronic document authenticity, its belonging to a taxpayer
and invariability of its content;
35)
securities - stocks, debt securities, derivative securities, and other objects
of property rights that are recognized as securities in accordance with the
legislation of the
2. Other
special concepts and terms of tax legislation shall be used in the meanings
defined in the relevant articles of this Code.
3. The
concepts of civil and other branches of legislation of the Republic of
Kazakhstan used in this Code shall be applied in the meaning in which they are
used in those branches of legislation, except as otherwise provided by this
Code.
Chapter 2. RIGHTS AND RESPONSIBILITIES OF A TAXPAYER
AND A TAX AGENT.
REPRESENTATION IN TAX RELATIONS
Article 11.
Rights of a taxpayer
1. A taxpayer
shall have the right:
1) to obtain
information from tax service authorities regarding current taxes and other
mandatory payments to the budget, and amendments to the tax legislation;
2) to
personally represent his own interests in matters pertaining to tax relations
or to act through a representative or with the assistance of a tax consultant;
3) to obtain
the results of tax control activities;
4) to provide
explanations to tax service authorities regarding the calculation and payment
of taxes and other mandatory payments to the budget based on the results of tax
control activities;
5) to obtain
a statement from a personal account regarding the status of settlements with
the budget for the fulfillment of a tax obligation;
6) to appeal
notices based on tax audit reports and the actions (inaction) of officials of
tax service authorities, following the procedure established by this Code and
other legislative acts of the
7) to request
that a tax secret be protected;
8) not to
furnish information and documents that do not pertain to taxation.
1-1) A
taxpayer shall have the right to participate by means of electronic way in
relations regulated by the tax legislation according to the procedure
established by the authorized state agency.
2. A taxpayer
shall have other rights provided for under the tax legislation of the
Article 12.
Responsibilities of a taxpayer
1. A taxpayer
shall be required:
1) to fulfill
a tax obligation in full and in a timely manner in accordance with this Code;
2) to comply
with lawful requests from tax service authorities with regard to the
elimination of violations of the tax legislation that are identified, and also
not to hinder their lawful activities in the performance of their official duties;
3) to allow
officials of tax service authorities to inspect property that is an object of
taxation or an object related to taxation, on the basis of a relevant order;
4) to file
tax reporting materials and documents following the procedure provided for
under this Code, as well as information and documents provided for under the
legislation of the Republic of Kazakhstan regulating the issues of the state
control when applying transfer prices;
5) to effect
monetary settlements with consumers, carried out in commercial transactions or
when providing services, using cash, bank payment cards, and checks, with the
mandatory application of cash registers with fiscal memory and the presentation
of a receipt to the consumer personally in accordance with this Code;
6) to hand in
an application to the tax authorities so as to carry out an inspection of
documents in connection with termination of entrepreneurial activity of an
individual entrepreneur, reorganization (except for cases stipulated by the
fifth paragraph of item 7 of Article 69 of this Code) and (or) liquidation of a
legal entity.
2. A taxpayer
shall carry out other responsibilities provided for under this Code.
Article 13.
Rights and responsibilities of a tax agent
1. A tax
agent shall have the same rights and bear the same responsibilities as a
taxpayer, except as otherwise provided by this Code.
2. A tax
agent shall also be required:
1) to
calculate taxes withheld at the source of payment properly and in a timely
manner in accordance with the special section of this Code;
2) to
withhold the appropriate taxes from a taxpayer and transfer them to the budget
in accordance with the procedure and within the deadlines provided for by this
Code;
3) to
maintain a record of income paid to taxpayers, as well as taxes withheld and
transferred to the budget, including a personal record for each taxpayer;
4) to file
tax reporting materials with the tax authority where it is registered,
following the procedure established under the special section of this Code;
5) to apply
the provisions of item 6-1 of Article 177 of this Code.
3. A taxpayer
shall have the right to participate by means of electronic way in relations
regulated by the tax legislation according to the procedure established by the
authorized state agency.
Article 14.
Representation in tax relations governed by this Code
1. A taxpayer
shall have the right to participate in relations governed by the tax
legislation through a legal or authorized representative.
2. A person
who is authorized to represent a taxpayer on the basis of the law shall be
recognized as a legal representative of a taxpayer.
3. An
individual or legal entity who is authorized by a taxpayer to represent his
interests in relations with tax service authorities shall be recognized as an
authorized representative of a taxpayer. An authorized representative of a
taxpayer shall act on the basis of a power of attorney (charter documents)
granted by a taxpayer, which contains a specific list of the representative’s
authorities.
4. Personal
participation by a taxpayer in relations governed by the tax legislation shall
not deprive him of the right to have a representative, just as participation by
a representative shall not deprive a taxpayer of the right to participate
personally in said relations.
5. The
actions (inaction) of a taxpayer’s representatives, performed in connection
with the participation by the given taxpayer in relations governed by the tax
legislation, shall be recognized as the actions (inaction) of the taxpayer.
Chapter 3. TAX SERVICE AUTHORITIES. CUSTOMS
AUTHORITIES. Cooperation Between Tax Service Authorities and Other Government
Agencies
Article 15.
Tasks and structure of tax service authorities
1. Tax
service authorities shall be assigned the task of ensuring that taxes and other
mandatory payments to the budget are received in full, that mandatory pension
contributions and social allocations to the Social Insurance State Fund are
transferred in full and in a timely manner, and they shall also be responsible
for performing tax control activities to monitor a taxpayer’s fulfillment of
his tax obligations.
2. Tax
service authorities shall consist of the authorized government agency and tax
authorities.
3. Tax
authorities shall include the interregional tax committees the tax committees
of the oblasts and the cities of Astana and Almaty, interregional tax
committees, and tax committees of regions, cities, and districts within cities.
In the event that special economic zones are formed the tax committees may be
organized on the territories of said zones as well.
4. Tax
authorities shall be directly subordinate to the respective higher-level tax
service authority through a vertical hierarchy and shall not be classified as
local executive government authorities.
5. The
authorized government agency shall be responsible for supervision of tax
authorities.
6. The top
officials of tax authorities shall be appointed to the position by the top
official of the authorized government agency.
Article 16.
Rights of tax service authorities
1. Tax
service authorities shall have the right:
1) to draft
and approve regulatory legal acts provided for under this Code;
2) within the
limits of their competence, to provide clarifications and commentaries on how
tax obligations are incurred, fulfilled, and terminated;
3) to perform
tax control activities following the procedure established by this Code;
4) to conduct
inspections of monetary documents, accounting books, reports, estimates, cash
on hand, securities, statements, returns, and other documents related to the
fulfillment of tax obligations, in compliance with the requirements established
by legislative acts of the Republic of Kazakhstan;
5) to request
that a taxpayer furnish documents regarding the calculation and payment
(withholding and transfer) of taxes and other mandatory payments to the budget
following the forms established by the authorized government agency,
explanations regarding the completion of these forms, as well as documents
confirming that taxes and other mandatory payments to the budget, mandatory
pension contributions to pension savings funds and social allocations to the
Social Insurance State Fund, have been calculated correctly and paid promptly
(withheld and transferred), as well as consolidated financial statements
of the taxpayer-resident including the financial statements of its subsidiaries
located outside the Republic of Kazakhstan;
6) in the
course of performing a tax audit following the procedure determined by
legislative acts of the Republic of Kazakhstan, to confiscate from a taxpayer
documents containing evidence that tax violations have been committed;
7) to inspect
any objects of taxation and objects related to taxation that are used for the
purpose of earning income, regardless of their location, and to conduct an
inventory of a taxpayer’s property (except for residential premises);
8) to obtain
information from a taxpayer in the form of electronic documents, based on a
list approved by the
9) to obtain
from banks or institutions performing certain types of banking operations information
about the existence of bank accounts and the numbers of these accounts, and the
balances and movement of funds on these accounts in compliance with the
requirements established by legislative acts of the Republic of Kazakhstan
regarding the disclosure of information that constitutes a commercial, bank, or
other secret protected by law with respect to:
a taxpayer
being audited – a legal entity and individual entrepreneur in matters
concerning taxation;
an idle legal
entity in accordance with the procedure established by the authorized state
agency in coordination with the authorized agency on regulation and supervision
of financial market and financial institutions;
a person
registered in compliance with the procedure established by law as a presidential
contender of the Republic of Kazakhstan, or as a candidate for deputies of the
Parliament of the Republic of Kazakhstan and Maslikhat, as well as for the
members of the local self-government organs, and his(her) spouse;
10) to
determine a taxpayer’s tax obligation indirectly in those cases provided for
under the special section of this Code;
10-1) to
attract specialists of other state structures to carry out tax audit;
11) to file
suit in court in accordance with the legislation of the
12) to
present claims to courts on liquidation of a legal entity on the grounds
stipulated by subitems 1), 2) and 4) of item 2 of Article 49 of
the Civil Code of the Republic of Kazakhstan.
1-1) Tax authorities shall have the right to
implement the tasks entrusted by the legislative acts of the Republic of
Kazakhstan, through electronic way and according to the procedure established
by the authorized state agency.
2. Tax
service authorities shall also have other rights provided for by the laws of
the
Article 17.
Responsibilities of tax service authorities
1. Tax
services authorities shall be required:
1) to observe
a taxpayer’s rights;
2) to protect
the interests of the state;
3) to perform
tax control activities to monitor the fulfillment of tax obligations, full and
timely social payments to the Social Insurance State Fund by a taxpayer, as
well as the withholding and transfer of mandatory pension contributions to
pension savings funds in a timely manner;
4) to
maintain a record of taxpayers, objects of taxation, and objects related to
taxation, and a record of taxes and other mandatory payments to the budget that
have been assessed and paid;
5) to explain
the procedure for filling out required tax reporting forms;
6) to perform
tax audits in strict compliance with the relevant orders;
7) to
maintain tax secrecy in accordance with the provisions of this Code;
8) to deliver
a notice to a taxpayer regarding fulfillment of a tax obligation within the
deadlines and in those cases specified by this Code;
9) to provide
a statement from a taxpayer’s personal account regarding the status of
settlements with the budget related to the fulfillment of tax obligations, at
the taxpayer’s request, within no more than three days;
10) to keep
on file for five years copies of receipts issued to a taxpayer confirming the
fulfillment of a tax obligation for the payment of taxes and other mandatory
payments to the budget;
11) to
monitor compliance with the procedure for the recording, storage, appraisal,
further use and sale of property turned over to the state, full
and timely transfer of said property to the appropriate authorized agency in
accordance with the legislation of the Republic of Kazakhstan, as well as the
transfer of proceeds to the budget in full and in a timely manner in the event
that the property is sold;
12) to apply
methods to ensure the fulfillment of tax obligations and to collect a
taxpayer’s tax debt on a compulsory basis in accordance with this Code;
13) to impose
administrative fines on a taxpayer in accordance with the
2. If cases
of intentional evasion of taxes and other mandatory payments to the budget are
discovered in the course of a tax audit, as well as cases of deliberate,
fraudulent bankruptcy that point to criminal activity, tax authorities shall
forward to the relevant law enforcement authorities materials that fall within
their jurisdiction, so that a procedural decision can be made in accordance
with legislative acts of the Republic of Kazakhstan.
3. Tax
service authorities shall also carry out other responsibilities provided for
under the tax legislation of the
Article 18.
Conflict of interest
Officials of
tax service authorities shall be prohibited from carrying out their official
duties with respect to a taxpayer who is a close relative of the official in
question (parents, spouses, brothers, sisters, children) or who is related by
marriage (brothers, sisters, parents, and children of spouses), and/or in which
said officials have a direct or indirect financial interest.
Article 19.
Powers of customs authorities to collect taxes
Customs
authorities shall collect taxes and other mandatory payments to the budget in
accordance with this Code and the customs legislation of the
Article 20.
Powers of authorized agencies
The powers of
authorized agencies to collect mandatory payments to the budget shall be
defined under the special section of this Code.
Article 21.
Powers of local executive government authorities
1. Akims of
settlements, auls (village), aul (village) districts (hereinafter referred to
as akims (akim - head of administration)) shall ensure the collection of taxes
on property and means of transport and the land tax paid by an individual
taxpayer.
2. Collection
of taxes specified in item 1 of this Article shall be made on the basis of a
receipt which is a registered high-security document. The form of a receipt
shall be established by the authorized government agency.
3. When
collecting taxes specified in item 1 of this Article akims shall ensure:
1) issue of
notices to a taxpayer on the amount of taxes and other mandatory payments to
budget calculated by the tax authority within no more than three business days
following the day on which the calculations are made;
2) issue of
receipts to an individual taxpayer confirming the payment of taxes;
3) depositing
taxes with a bank or with an institution effecting certain types of banking
operations on a daily basis no later the banking day following the day on which
the funds were received for their further transfer to the budget. In the event
that daily cash inflow makes up the amount which is less than 10 times monthly
reference indicator established by the Law on republican budget for a
respective financial year as well as in the event that there is no bank or an
organization effecting certain types of banking transactions in the given
population area the transfer of funds shall be made once in three banking days.
4) if
receipts are filled out properly and stored securely;
5) furnishing
the tax authority with reports on the use of receipts as well as the deposit of
taxes with a bank or an institution performing certain types of banking
operations following the procedure and within the time periods established by
the authorized government agency;
4. Local
executive authorities of oblasts (city of republican level, capital) or
districts (towns of oblast level) shall ensure the distribution of one-time
coupons and the collection of amounts in full from realization of one-time
coupons in accordance with the procedure established by the local executive
authorities of oblasts (city of republican level, capital) in
coordination with the authorized state agency.
Article 22.
Cooperation between tax service authorities and other government agencies
1. Tax
service authorities shall cooperate with central and local government agencies,
shall implement joint supervisory measures, and shall provide for the sharing
of information.
2. Government
agencies shall be required to provide assistance to tax service authorities in
the performance of activities related to monitoring compliance with the tax
legislation.
3. Tax service
authorities and customs authorities shall carry out their assigned tasks
related to tax supervision in cooperation with one another.
4. Tax
service authorities and local executive government authorities shall cooperate
with one another in the collection of taxes.
Article 23.
Legal and social protection of officials of tax service authorities
1. Officials
of tax service authorities shall be protected under the law in the performance
of their official duties.
2. Should a
tax service official suffer bodily injury of moderate severity in connection
with the performance of his job, he shall be paid lump-sum compensation equal
to five times his monthly wage at the expense of republican budget funds, with
the subsequent recovery of this amount from the guilty parties in accordance
with the legislation of the Republic of Kazakhstan.
3. Should a
tax service official suffer severe bodily injury in connection with the
performance of his job, which results in his inability to perform professional
activity in the future, he shall be paid lump-sum compensation equal to five
times his annual salary at the expense of republican budget funds, with the
subsequent recovery of this amount from the guilty parties, in addition to the
difference between his salary and pension (for life).
4. In the
event of the death of a tax service official in the performance of his official
duties, the family of the deceased or his dependents (heirs):
1) shall be
paid a lump-sum benefit equal to ten times the annual salary earned by the deceased
in the last position he held, at the expense of republican budget funds;
2) shall be
awarded a government social benefit for loss of a breadwinner in the amount and
following the procedure established by the legislation of the
5. Damage to
the health and property of a tax service official, as well as damage to the
health and property of family members and close relatives of a tax service
official, in connection with the performance of his official duties shall be
compensated in full at the expense of republican budget funds, with the
subsequent recovery of this amount from the guilty parties.
Part 2. Tax obligation
Chapter 4. GENERAL PROVISIONS
Article 24.
Tax obligation
1. A tax
obligation shall be understood to mean an obligation of a taxpayer to the state
arising in accordance with the tax legislation, by virtue of which a taxpayer
is required to register with a tax authority, identify objects of taxation and
objects related to taxation, calculate taxes and other mandatory payments to
the budget, prepare tax reporting materials, file them within the established
deadlines, and pay taxes and make other mandatory payments to the budget.
2. The state,
in the person of a tax service authority, shall have the right to require that
a taxpayer meet his tax obligations in full, and in the event that they are not
met or not met properly, it shall have the right to apply methods to ensure
their fulfillment and measures to collect the taxes owed on a compulsory basis
following the procedure provided for under this Code.
Article 25.
Objects of taxation and objects related to taxation
Objects of
taxation and objects related to taxation shall be understood to be property and
actions, the existence of which means that a taxpayer incurs a tax obligation.
An object of
taxation and an object related to taxation shall be determined for each type of
tax and other mandatory payment to the budget in accordance with the special
section of this Code.
Article 26.
Tax base
The tax base
shall be the value, physical, or other characteristics of an object of taxation
and an object related to taxation, on the basis of which the amount of taxes
and other mandatory payments payable to the budget is determined.
Article 27.
Tax rate
1. The tax
rate shall be the amount of tax assessed per unit of measure of the tax base.
2. The tax
rate shall be established as a percentage or as an absolute amount per unit of
measure of the tax base.
Article 28.
Tax period
The tax
period shall be understood to mean the period of time established for certain
taxes and other mandatory payments according to the special section of this
Code, at the end of which the tax base is determined and the amount of taxes
and other mandatory payments payable to the budget is calculated.
Chapter 5. FULFILLMENT OF A TAX OBLIGATION
Article 29.
Fulfillment of a tax obligation
1. The
fulfillment of a tax obligation shall be performed by a taxpayer independently,
except as otherwise established by this Code.
2. A taxpayer
shall carry out the following actions in the fulfillment of a tax obligation:
1) he shall
register with a tax authority;
2) he shall
maintain a record of objects of taxation and objects related to taxation;
3) he shall
calculate the amount of taxes and other mandatory payments payable to the
budget proceeding from the objects of taxation and objects related to taxation,
the tax base, and the tax rate;
4) he shall
prepare tax reporting materials and file them with tax service authorities
following the established procedure and within the established deadlines;
5) he shall
pay the taxes and other mandatory payments to the budget that have been
calculated and assessed, following the procedure and within the deadlines
established by the tax legislation, as well as penalties and fines in the event
of failure to fulfill a tax obligation.
A tax
obligation must be fulfilled by a taxpayer following the procedure and within
the deadlines established by this Code.
3. A taxpayer
shall have the right to fulfill a tax obligation ahead of schedule.
4. An
obligation of a taxpayer that is fulfilled in noncash form shall be considered
fulfilled as of the day an acceptance of a payment order for the amount of
taxes and other payments is received from a bank or institution performing
certain types of banking operations, or as of the day on which the
taxpayer makes payment through cash machines or other electronic devices,
and an obligation paid in cash shall be considered fulfilled as of the moment
the taxpayer deposits the amount in question with a bank or an authorized
agency.
5. A tax
obligation of a taxpayer that is fulfilled by a tax agent shall be considered
fulfilled as of the day it is withheld.
6. A tax
obligation to pay taxes may also be fulfilled through crediting, following the
procedure established under Articles 39 and 252 of this Code.
7. A tax
obligation to pay taxes and to make other mandatory payments to the budget
shall be fulfilled in tenge, with the exception of cases stipulated by the
legislative acts of the Republic of Kazakhstan which regulate the activities of
joint-stock companies as well as cases in which legislative acts of the
Republic of Kazakhstan and provisions of mining contracts specify in-kind payment
or payment in foreign currency.
Article 30.
Provisions specific to the calculation of taxes and other mandatory payments
to the budget in the fulfillment of a tax obligation
1. The
calculation of taxes withheld at the source of payment shall be performed by a
tax agent.
2. In those
cases provided for in the special section of this Code, the responsibility for
calculating certain types of taxes and other mandatory payments to the budget
may be assigned to a tax authority and to authorized agencies.
Article 31.
Notice by tax service authorities regarding fulfillment of a tax obligation
1. A written
notification sent to a taxpayer by a tax service authority in the form of paper
documents or at the taxpayer’s written consent in electronic form regarding the
need for the taxpayer to fulfill a tax obligation shall be recognized as a
notice.
2. The types
of notices shall be limited to those listed below and shall be sent to a
taxpayer within the following deadlines:
1) a notice
regarding the amount of taxes and other mandatory payments to the budget
calculated by a tax authority in accordance with item 2, Article 30, of this
Code - no later than three business days from the day they are calculated;
2) a notice
regarding the assessed amount of taxes and other mandatory payments to the
budget, and penalties based on the results of a tax audit - no later than three
business days from the day a decision is adopted on the basis of the tax audit
report;
3) annulled;
4) a notice
regarding measures being taken to ensure fulfillment of a tax obligation not
met within the required deadline, except for the case provided for in subitem
1) of Article 45 of the present Code, - upon expiration of the deadlines
established in subitems 1) and 2) of item 1 of Article 47 of the present Code;
5) a notice
regarding measures being taken for the compulsory collection of a tax debt - no
later than five business days before the beginning of the implementation of the
compulsory collection measures;
6) a notice
regarding collection action against money held on debtors’ bank accounts - no
later than ten business days before the collection action is taken;
7) a notice
regarding the elimination of violations discovered on the basis of in-house
control - no later than two business days from the day the violations in tax
reporting are discovered;
8) a notice regarding the assessed amount of
taxes and other mandatory payments to the budget, and penalties based on the
results of a review of a taxpayer’s appeal - no later than five business days
from the day a decision on the appeal is made;
9) a notice
regarding the elimination of violations of tax legislation - no later than five
business days from the day they are discovered;
10) a notice regarding removal a person from
registration as a payer of value added tax on the reason that its has not
notified the tax authorities about changing its place of location (residence)
within 20 business days following the day on which such changes take place – no
later than one business day following the day on which the taxpayer was removed
from the registration for the value added tax.
3. A notice
shall indicate the family name, first name and patronymic or full name of the
taxpayer; the taxpayer’s registration number; the date of the notice; the
amount of the tax obligation in cases stipulated by the legislation of the
Republic of Kazakhstan; the requirement to fulfill the tax obligation; the
grounds for sending the notice; and the appeal procedure.
The forms to
be used for notices shall be established by the authorized government agency.
4. A notice
must be delivered personally to the taxpayer (his representative) with a signed
receipt of delivery, or by some other method that allows for confirmation that
the notice was sent and received, except for the notice referred to in
sub-item 10) of item 2 of this article that allows for confirmation that the
notice was sent.
4-1. The
notice provided for under subitem 7) of item 2 of the present Article shall be
subject to being fulfilled by a taxpayer within 30 working days
beginning from the date when the notice is handed over to (received by)
the taxpayer.
5. The
provisions contained in this article shall also apply to a notice sent to a tax
agent.
Article 32.
Deadlines for fulfillment of a tax obligation
1. The deadlines
for fulfillment of a tax obligation shall be established by this Code. The time
period established by this Code shall begin on the day following the actual
event or legal action that defines its starting point. The deadline shall
expire at the end of the last day of the period established by this Code. If
the last day of the time period falls on a weekend or holiday, the deadline
shall expire at the end of the next business day.
2. In the
event that tax authorities send a notice of assessed taxes, other mandatory
payments to the budget, and penalties based on the results of tax control
activities, as well as of elimination of infringements of the Tax Code of the
Republic of Kazakhstan, the tax obligation must be fulfilled within thirty
business days of the day following the day on which the notice was delivered to
the taxpayer (received by the taxpayer).
3. In the
event that a taxpayer agrees with the assessed amount of taxes, other mandatory
payments to the budget, and penalties based on the results of a tax audit
indicated in a notice (other than assessed excise taxes and taxes withheld at
the source of payment), at the taxpayer’s request the deadline for the
fulfillment of the tax obligation may be extended by 60 business days. In this
case, the amount indicated shall be payable to the budget, in addition to a
penalty for each day the payment deadline is extended, and it shall be paid in
equal installments every 15 business days over the given period.
4. The
deadlines to fulfill the tax obligations on payment of amounts in arrears of
joint-stock companies with share of the state in the authorized capital stock,
when the compulsory issue of declared shares is to be made under the court
decision in order to discharge the arrears, shall be suspended as of the moment
when the court decision on compulsory issue of declared shares comes into force
and till the completion of their floatation (realization).
Article 33.
Procedure for the discharge of a tax debt
The discharge
of a tax debt shall be carried out in the following order:
1) penalties
assessed;
2) the amount
in arrears
3) the amount
of fines.
Article 34.
Fulfillment of a tax obligation of a legal entity undergoing liquidation
1. Payment of
taxes and other mandatory payments to revenue, which is reflected in
liquidation tax accounts shall be made within 10 business days following the
day on which the liquidation tax accounts are filed.
Should due
date for payment of taxes and other mandatory payments to revenue reflected in
the tax accounts (except for liquidation one) begins after the expiry of the
due time mentioned in the first part of this item, such payment shall be made
not later than ten business days following the day on which the liquidation tax
accounts are submitted.
The tax debt of a legal entity undergoing
liquidation shall be discharged at the expense of the given legal entity’s
funds, including proceeds from the sale of its property, in the order of
priority established by legislative acts of the
2. If the
property of a legal entity undergoing liquidation is insufficient for the
discharge of its tax debt in full, the balance of the tax debt shall be
discharged by the founders (partners) of the legal entity being liquidated in
those cases established by legislative acts of the
3. If a legal
entity undergoing liquidation has overpaid taxes and other mandatory payments
to the budget, the excess shall be credited against the discharge of the tax
debt of the legal entity being liquidated, following the procedure established
under Article 39 of this Code.
If a legal
entity undergoing liquidation has no tax debts, the excess amount of taxes and
other mandatory payments to the budget shall be refunded to the legal entity.
Article 35.
Fulfillment of a tax obligation in the event of the reorganization of a legal
entity
1.
Fulfillment of the tax obligation of a reorganized legal entity shall become
the responsibility of its legal successor (legal successors).
2. The
establishment of a legal successor (legal successors), as well as the share of
legal successors in the discharge of the tax debt of a reorganized legal
entity, shall be carried out in accordance with the civil legislation of the
3. The
reorganization of a legal entity shall not be grounds for a change in the
deadline for the fulfillment by the legal entity’s legal successor (legal
successors) of its tax obligations involving the payment of taxes and other
mandatory payments to the budget.
4. Taxes and
other mandatory payments to the budget paid in excess of the required amount by
a legal entity prior to its reorganization shall be credited by the tax authority
against the discharge of the tax debt of the reorganized legal entity.
5. If a
reorganized legal entity has no tax debts, the excess amount of taxes and other
mandatory payments paid by the legal entity to the budget shall be refunded to
its legal successor.
Article 36.
Discharge of a tax debt of a deceased individual
1. The tax
debt of a deceased individual owed as of the day of his death shall be
discharged by his heir (heirs) up to the value of the property inherited and in
proportion to the heir’s share in the estate as of the date it is received.
2. In the
event that there is no heir, the tax debt of a deceased individual owed as of
the day of his death shall be considered discharged.
Article 37.
Fulfillment of a tax obligation of a person recognized by the courts as missing
1. In the
event that a court recognizes an individual as missing, the tax obligation of
such an individual shall be suspended as of the day such a decision is handed
down.
2. The tax
debt of an individual recognized by a court as missing shall be discharged by
the person authorized by the appropriate trust authority to manage the property
of the missing person.
3. If the
property of a person recognized as missing in accordance with the established
procedure is insufficient to discharge a tax debt, the outstanding amount of
the tax debt of the missing person shall be written off by the tax authority on
the basis of a court decision regarding the insufficient property.
4. In the
event that a court revokes a decision declaring a person missing, a tax debt
that was previously written off shall be reinstated regardless of the statute
of limitations established for the tax obligation.
Article 38.
Statute of limitations for a tax obligation
1. A tax
service authority shall have the right to assess of taxes and other mandatory
payments to the budget or revise the assessed amount of taxes and other
mandatory payments to the budget up to five years from the end of a tax period,
except for cases stipulated by this Article.
1-1. With
respect to the taxpayers carrying out business in accordance with the contract
on subsurface use, a tax service authority shall have the right to assess taxes
and other mandatory payments to the budget or revise the assessed amount of
excess profit tax, taxes and other mandatory payments to the budget, if they
use one of the following indices: internal standard of profitability(ISP) or
R-factor (yield index) for their calculation method, within five years
following the date on which contracted period on subsurface use is completed.
1-2. In the
event that a taxpayer files additional tax accounts for the period on which the
statute of limitations established in item 1 of this Article expires earlier
than in one calendar year, the specified limitation period shall be extended in
the part of assessment and (or) revision of the assessed taxes and other
obligatory payments to the budget for one calendar year.
1-3) In the
event that a taxpayer applies item 4 of Article 100 and sub-item 25-1) of
Article 144 of this Code the statute of limitations established under item 1 of
the present Article shall be extended in the part of assessment and (or)
revision of the assessed amounts of corporative income tax and individual
income tax up to five years of the period established under sub-item 1) of item
4 of Article 100 of this Code related to fulfillment of obligations by an
individual.
2. A taxpayer
shall have the right to request that excess taxes and other mandatory payments
to the budget that have been paid be credited or refunded up to five years from
the end of a tax period, and (or) within five years following the day on which
contracted period on subsurface use is completed with respect to the taxes
specified in item 1-1 of this Article.
Chapter 6. CREDITING AND REFUND OF EXCESS TAXES,
OTHER OBLIGATORY PAYMENTS AND PENALTIES PAID IN SETTLEMENTS
WITH THE BUDGET FOR THE FULFILLMENT OF A TAX OBLIGATION
Article 39.
Crediting of excess taxes, charge, penalties paid by a taxpayer in settlements
with the budget for the fulfillment of a
tax obligation
1. The
amounts of excess tax, charges, penalties paid shall be the difference between
the amounts of tax, fee, penalties paid to the budget and the amounts assessed
for a tax period, taking into account the obligations on said type of tax,
payment, penalty for previous tax periods.
The amount of
excess tax paid shall be also the amount of paid tax subject to repayment to a
taxpayer-nonresident in accordance with Article198-1 of this Code.
2. For the
purposes of this Chapter the charge shall be understood to mean a payment for
the use of parcels of land, use of near-surface water sources, pollution of
environment, use of radio-frequency spectrum, granting of trunk-line and/or
international telephone communication.
3. The amount of excess tax and charge paid to
the budget shall be credited against the discharge of a tax debt:
1) without a
taxpayer’s request against the discharge of penalties and fines on the given
type of tax and charge;
2) at the
taxpayer’s request within ten working days from the date when the taxpayer’s
request is submitted, according to the following order:
against the
discharge of arrears, penalties and fines on other types of taxes and (or)
charges;
against
future payments on the given type of tax and (or) charges.
4. The amount
of excess tax paid to the budget, which is collected by the customs authorities
in case of moving goods through the Customs frontier of the Republic of
Kazakhstan, shall be credited against the discharge of a tax debt at the
taxpayer’s request within ten working days from the date when the request is
submitted, accompanied by the tax authority’s confirmation on availability of
the excess tax paid according to the following procedure:
against
discharge of arrears, penalties and fines on other types of taxes;
against
future payments on other types of taxes.
5. The amount
of excess penalty paid to the budget shall be credited:
1) without a
taxpayer’s request against the discharge of arrears and fines on the given type
of tax and charge;
2) at the
taxpayer’s request within ten working days from the date when the request is
submitted, according to the following order:
against the
discharge of arrears, penalties and fines on other types of taxes and (or)
charges;
against
future payments on the given type and other types of taxes and (or) charges.
6. The crediting of amounts of excess tax,
payment, penalty shall be effected by the tax authority through which taxes,
charges, penalties are paid to the budget, following the procedure established
by this article, except as otherwise established by this Code.
7. In the
event of failure to meet the deadline specified in items 3 and 5 of this
Article, the penalty at the rate of 2,5 times the official refinancing rate
established by the National Bank of the
8. Excess
taxes, charges, penalties paid to the budget may not be credited against the
discharge of a tax debt of a different taxpayer.
Article 40.
Refund of excess taxes, other mandatory payments and penalties paid to
the budget in the fulfillment of a tax obligation
1. The amount
of excess tax, charges, penalties paid shall be transferred to a
taxpayer’s bank account at his request after the crediting provided for under
Article 39 of this Code has been performed.
2. An excess
tax, charges, penalties shall be refunded at the place where the
tax, charges, penalties were paid within 15
business days of the date a refund request is filed, except as otherwise
established by this Code.
2-1. The
amount of excess taxes, other mandatory payments and penalties made to the
budget, which are collected by the customs authorities in case of moving goods
through the Customs frontier of the Republic of Kazakhstan, shall be refunded
at the place where they were paid within 15 business days of the date a refund request
is filed, accompanied by the tax authority’s confirmation on availability of
the excess customs payments, taxes and penalties made to the budget.
4. Excess
mandatory payments, penalties made to the budget shall be
refunded in accordance with this article, except as otherwise established by
this Code.
Chapter 7. CHANGE IN DEADLINES FOR FULFILLMENT OF A
TAX OBLIGATION TO PAY TAXES
Article 41.
The concept of and general conditions for changing deadlines for the
fulfillment
of a tax obligation to pay taxes
1. A change
in deadlines for the fulfillment of a tax obligation to pay taxes shall be
understood to mean a postponement to a later date of the deadline established
by this Code for the payment of taxes (other than taxes withheld at the source
of payment and excise taxes) on the basis of a valid application from a
taxpayer, but this postponement shall not exceed ten months of a calendar year.
2. The right
to fulfill a tax obligation within amended deadlines may not be transferred to
another person.
3. A change
in deadlines for the fulfillment of a tax obligation to pay taxes shall not
exempt a taxpayer from the payment of a penalty for late payment of taxes in
accordance with Article 46 of this Code, except in those cases established
under the special section of this Code.
4. A change
in deadlines for the fulfillment of a tax obligation to pay taxes shall be
effected against a pledge of the taxpayer’s property or a bank guarantee,
except in those cases established under the special section of this Code.
5. The
procedure for changing deadlines for the fulfillment of a tax obligation to pay
taxes against a pledge of the taxpayer’s property and a bank guarantee shall be
determined by the
Article 42.
Agency authorized to adopt a decision to change the deadline for fulfillment
of a tax obligation to pay taxes
1. A decision to change deadlines for the
fulfillment of a tax obligation to pay taxes that are applied to the republican
budget, as well as those distributed between the republican and local budgets,
shall be made by the authorized government agency, except for the cases
established by Article 249 of this Code.
2. A decision
to change deadlines for the fulfillment of a tax obligation to pay taxes that
are applied in full to local budgets shall be made by the tax authority with
which the taxpayer is registered, in consultation with the local executive
government authority.
Article 43. Expiration
of a decision to change deadlines for fulfillment of a tax obligation
to pay taxes
1. A decision
to change deadlines for fulfillment of a tax obligation to pay taxes shall
expire on the expiration date specified in the decision.
2. A decision
to change deadlines for fulfillment of a tax obligation to pay taxes shall
expire ahead of schedule in the event that the taxpayer pays all taxes due
prior to the expiration of the deadline established in the decision or in the
event that the taxpayer violates the conditions for the change in deadlines for
fulfillment of a tax obligation to pay taxes.
Article 44.
Procedure for taking collection action and sale of a taxpayer’s pledged
property
1. In the
event that the conditions for a change in deadlines for the fulfillment of a
tax obligation are not met or are not met properly, when the obligation is
secured by a pledge (or bank guarantee), tax service authorities shall have the
right to take collection action against the taxpayer’s pledged property or to demand
execution of the bank guarantee.
2. The sale
of property pledged by a taxpayer shall be carried out in accordance with the
procedure established by the civil legislation of the
Chapter 8. METHODS TO PROVIDE FOR THE FULFILLMENT OF A
TAX OBLIGATION
THAT HAS NOT BEEN MET BY THE DEADLINE
Article 45.
Methods to provide for the fulfillment of a tax obligation that has not been
met by the deadline
The following
methods may be employed to provide for the fulfillment of a taxpayer’s tax
obligation that has not been met within the established deadline:
1) assessment
of a penalty on the outstanding amount of taxes and other mandatory payments to
the budget;
2) suspension
of spending operations on bank accounts;
3) a
restriction on the disposition of property to the discharge of the taxpayer’s
tax debt.
Methods to
provide for the fulfillment of a tax obligation that has not been met by the
deadline, which are mentioned in sub-items 2) and 3) of the present Article
shall be applied when a notice is sent to the taxpayer within the deadlines
established in Article 31 of the present Code.
In the event
that a post office or other postal service agency returns the sent notice in
connection with the absence of a taxpayer at his/its actual address (place of
residence)the method to provide for the fulfillment of a tax obligation that has not been met by the deadlines, which
is mentioned in sub-item 2) of this article shall be applied within five business days on the basis of a
formal note of a taxpayer’s absence at the actual address (place of residence)
drawn up by the tax authorities and of the reply from the appropriate law
enforcement agencies confirming the impossibility to determine the taxpayer’s
place of location (residence).
A formal note
of taxpayer’s absence at the actual address (place of residence) shall be drawn
up within five business days following the day on which the sent notice was
returned by a post office or other postal service agency in connection with the
taxpayer’s absence at the actual address (place of residence).
Article 46.
Penalty on the outstanding amount of taxes and other mandatory payments to the
budget
1. A penalty
shall be understood to mean the amount charged on a delinquent tax obligation
as established under item 3 of this article.
2. The amount
of a penalty shall be assessed and paid regardless of the implementation of
measures aimed at the compulsory fulfillment of a tax obligation to discharge a
tax debt, as well as other enforcement measures for the violation of tax
legislation.
3. A penalty
shall be assessed for each day of delay in the fulfillment of a tax obligation,
starting on the day following the deadline for the payment of the tax and other
mandatory payment to the budget, and including the day on which payment is made
to the budget, in an amount equal to 2,5 times the official refinancing rate
established by the National Bank of the Republic of Kazakhstan on each day of
delay.
4. The
penalty shall be assessed against banks or institutions performing certain
types of banking operations for failure to comply with the proper order of
priority for the debiting of taxes and other mandatory payments, fines,
penalties from bank accounts, as well as for a delay in the transfer (credit)
of taxes and other mandatory payments, fines, penalties debited from taxpayers’
bank accounts, and also the cash accepted in pay desks of banks or institutions
performing certain types of bank transactions against payment of taxes and
other mandatory payments, fines and penalties.
5. A penalty
shall not be assessed on the arrears of a taxpayer who has been declared
bankrupt, as of the moment a court issues such a decision, or on the arrears of
a taxpayer with respect to whom a compulsory liquidation decision has been
issued, or a definition has been taken to apply a rehabilitation procedure, as
of the day such a decision or a enters into force.
6. A penalty
shall not be assessed against creditors of banks undergoing compulsory
liquidation for failure to discharge arrears in a timely manner, if the only
reason for the arrears was the liquidation of the servicing bank, as of the
moment a decision regarding the bank’s compulsory liquidation enters into
force.
7. A penalty
shall not be assessed on arrears, for the discharge of which a compulsory issue
of declared shares is being performed in accordance with a court decision, as
of the moment the court decision regarding the compulsory issue of declared
shares enters into force and until the placement of the stocks is completed.
8. A penalty
shall not be assessed on arrears as of the moment a court decision declaring an
individual missing enters into force and until such a decision is rescinded.
9. A penalty
shall not be assessed on arrears which are proportional to excess tax paid, and
which are indicated in a taxpayer’s request on crediting of the excess tax
paid, in the event of failure to meet the deadline for crediting established in
item 2 of Article 39 of this Code subject to confirmation of the excess tax
paid.
This
principle does not apply to the cases specified under this Code.
Article 47.
Suspension of spending operations on a taxpayer’s bank accounts
1. The
suspension of spending operations on the bank accounts (other than
correspondent accounts) of a legal entity and individual entrepreneur shall be
carried out in accordance with the procedure established by legislative acts of
the
1) the
taxpayer has failed to file tax reporting materials within ten business days of
deadline for their submission;
2) a tax debt
has not been discharged 30 business days from the established payment deadline;
3) officials
of a tax service authority are not allowed access to conduct a tax audit and
inspect objects of taxation and objects related to taxation, except in cases in
which they have violated the procedure established by this Code for the
performance of a tax audit.
4) a place of
location (residence) of a taxpayer is impossible to determine, which is
confirmed with the documents stipulated under article 45 of the Code.
The
suspension of spending operations on bank accounts shall extend to all of the taxpayer’s spending
operations, except operations related to the discharge of a tax debt.
2. An
instruction from a tax authority to suspend spending operations on a taxpayer’s
bank accounts shall be issued in accordance with the form established by the
authorized government agency in conjunction with the National Bank of the
Republic of Kazakhstan, and it shall enter into force as of the day it is
received by a bank or institution performing certain types of banking
operations.
3. An
instruction from a tax authority to suspend spending operations on a taxpayer’s
bank accounts shall be subject to unconditional execution by banks or
institutions performing certain types of banking operations.
4. An
instruction to suspend spending operations on bank accounts shall be rescinded
by the tax authority that issued the instruction to suspend spending operations
no later than one business day after the day on which the reasons for the
suspension of spending operations on bank accounts are eliminated.
In the event
that a taxpayer’s bank account has been closed in accordance with the
legislation of the
5. In the
event of an appeal of a notice of assessed taxes and other mandatory payments
to the budget, and penalties based on the results of a tax audit, spending
operations on bank accounts shall not be suspended.
Article 48.
Issuance of a decision to restrict the disposition of a taxpayer’s property
to the discharge of the taxpayer’s tax debt
1. In the
event that a tax debt is not discharged within ten business days of the date an
instruction is issued to suspend spending operations on a taxpayer’s bank
accounts, the disposition of property shall be restricted to the discharge of
the tax debt.
A decision to
restrict the disposition of property shall be issued following the form
established by the authorized government agency.
The registration
of the encumbrance of intangible property shall be made in accordance with the
legislation of the
2. A decision
to restrict the disposition of a taxpayer’s property shall be issued with
respect to property owned by the taxpayer or under the taxpayer’s economic
control (except in those cases in which the contract regarding the placement of
property under economic control prohibits its alienation).
When a
decision is issued to restrict the disposition of a taxpayer’s property that
has been transferred to another party under a financial leasing arrangement
and/or has been pledged as security, the tax authorities shall be prohibited to
seize this property until the contract is terminated, a taxpayer shall be
prohibited to introduce any changes in the terms of the contract (extension of
the contract term, subleasing and (or) surcharge) from the moment the tax
authority issues the decision regarding this property and until the decision is
rescinded.
3. A decision
to restrict the disposition of property shall be adopted by a tax authority on
the basis of available data on the taxpayer’s personal account regarding the
amount of tax debt.
4. On the
basis of a decision to restrict the disposition of property, a property
inventory certificate shall be prepared in the amount of the tax debt, with a
warning to the taxpayer of liability for violation of the conditions for the
possession, use, and disposition of the property.
An inventory
of property subject to restricted disposition shall be prepared indicating its
price, determined on the basis of the taxpayer’s accounting data, or an
independent appraisal performed in accordance with a legislative act of the
Republic of Kazakhstan on appraisal activity, and a certificate shall be drawn
up in duplicate, following the form and procedure established by the authorized
government agency.
Whem
preparing a property inventory certificate a taxpayer shall be required to
submit the notarized copies of the documents confirming that the property is
owned by the taxpayer or under the taxpayer’s economic control.
The tax
authority shall be required to furnish a taxpayer, who is present at the time a
restriction is placed on the disposition of property, with the decision to
restrict the disposition of property and one copy of the property inventory
certificate.
5. A decision
to restrict the disposition of property shall be rescinded by a tax authority
no later than one business day after the taxpayer has discharged the tax debt.
Chapter 9. MEASURES AIMED AT COMPULSORY COLLECTION of
a tax Debt
Article 49.
Measures aimed at compulsory collection of a tax debt
Tax
authorities shall have the right to apply measures aimed at compulsory
collection, except in cases in which a notice based on a tax audit report has
been appealed. Before the compulsory collection measures are applied a notice
shall be sent to a taxpayer in accordance with Article 31 of this Code.
Compulsory collection of a tax debt shall be carried out in the following
order:
1) at the
expense of funds held on bank accounts;
2) at the
expense of cash;
3) from
debtors’ accounts;
4) through
the sale of property subject to restricted disposition;
5) compulsory
issue of declared shares.
Article 50.
Collection of a tax debt at the expense of funds held on bank accounts
1. In the
event of nonpayment or incomplete payment of a tax debt owed by a taxpayer on
the basis of returns and/or statements, and also on the basis of the results of
tax audits, a tax authority shall have the right to take compulsory collection
action against the bank accounts of the taxpayer and/or his/its structural
subdivisions which are not independent taxpayers to recover the amount of the
tax debt, without the taxpayers' consent.
The
provisions of this item shall not extend to the bank accounts against which, in
accordance with the legislative acts of the
2. Collection
of a tax debt from a taxpayer’s bank accounts shall be carried out on the basis
of a collection order issued by a tax authority, except for the money which is
the security for a loan issued by the bank, in the outstanding amount of main
debt of said loan.
3. When a
bank executes a collection order issued by a tax authority for the collection
of a tax debt from one bank account of a taxpayer, collection orders presented
by the tax authority on other bank accounts opened by the taxpayer at the given
bank shall be returned by the bank to the tax authority without being executed,
accompanied by a payment document confirming the execution of the tax
authority’s collection order, if such collection orders were presented by the
tax authority in the same amount, for the same type of debt, for the same
reporting period.
4. A
collection order shall be presented following the form established by
regulatory legal acts of the
5. In the
event that there are no funds on a taxpayer’s bank account in tenge, a tax debt
shall be collected from the taxpayer’s bank accounts in foreign currency on the
basis of collection orders presented by tax authorities in tenge.
6. If a
client has suff icient funds in a bank to satisfy all the requirements made to
the client, a collection order for the recovery of a tax debt shall be executed
by a bank or an institution performing certain types of banking operations on a
priority basis and no later than one business day after the day on which the
order is received, within the limits of the funds available on the bank
account.
7. If there
are insufficient funds or no funds on a bank account (bank accounts) of a
taxpayer, in the event that a few claims are put in to a client, the bank shall
withdraw the client’s funds to discharge the taxpayer’s tax debt as far as the
funds have been transferred to such account (accounts) and according to the
priority established by the Civil Code of the Republic of Kazakhstan.
8. If there
are no funds on a taxpayer’s bank account against which a tax authority has
presented a collection order for the recovery of a tax debt, the bank that has
accepted the collection order for execution, when closing the taxpayer’s
account in accordance with the legislation, shall return said collection order
to the respective tax authority together with a notice of the closure of the
taxpayer’s bank account.
Article 51.
Collection of a tax debt at the expense of cash
1. A tax debt
shall be collected at the expense of cash if there is no bank account or there
are insufficient funds or no funds available on a bank account.
2. The
collection of a tax debt at the expense of cash shall be understood to mean the
seizure by a tax authority from a taxpayer of cash that appears in the
taxpayer’s accounting (cash) records (including foreign exchange cash).
3. The
seizure of cash shall be documented by a seizure certificate, following the
form established by the authorized government agency.
4. Cash that
is seized from a taxpayer must be turned over to a bank or an institution
performing certain types of banking operations no later than one business day
after the day on which it is seized, so that it can be posted to the taxpayer’s
bank accounts and subsequently transferred to the budget. In the absence of any
bank accounts, cash seized from a taxpayer shall be posted to the budget no
later than one business day after it is collected.
Article 52.
Collection of a taxpayer’s tax debt from its debtors’ accounts
1. In the
event that there are insufficient funds or no funds on a taxpayer’s bank
accounts and a taxpayer has no cash, a tax authority shall have the right to
take collection action, up to the amount of the tax debt, against funds held on
the bank accounts of third parties that owe a debt to the taxpayer (referred to
hereinafter as debtors).
1-1. No later
that 10 business days from the receipt of a notice of the application of
compulsory collection measures a taxpayer shall submit a list of debtors
indicating the amount of receivables to the tax authority that has sent the
notice.
In the event
that the list of debtors is not submitted within the deadline specified in the
present item the tax authority shall carry out a tax audit of the taxpayer.
1-2. On the
basis of the list of debtors or a tax audit confirming the amount of debts
receivable, the tax authorities shall send to the debtors the notices of the
collection action against funds on their bank accounts to discharge the
taxpayer’s tax debt within the amount owned by the debtors.
No later than
20 business days from the receipt of a notice, except for the case
stipulated under this Article, a debtor shall be required to furnish the tax
authority that sent the notice with a certificate of verification of mutual
settlements, compiled jointly with the taxpayer as of the date on which the
notice was received.
In the event
that the debtors failed to furnish a certificate of verification of mutual
settlements within the deadline specified under this item, the tax authority
shall conduct a tax audit of said bankrupts.
1-3. In the
event that there are a tax audit report confirming the amount owned by the
debtors, as well as a notice of the collection action against funds from the
debtors’ bank accounts, the debtors shall not furnish a verification
certificate of mutual settlements.
1-4. In the
event that taxpayers discharge the debts receivable, the list of debtors or a
verification certificate of mutual verification certificate of mutual
settlements shall not be furnished.
2. The
certificate of verification of mutual settlements between a taxpayer and a
debtor must contain the following information:
1) the name
of the taxpayer and the debtor, and their registration numbers;
2) the name
of the tax authority with which the taxpayer and the debtor are registered;
3) the
particulars of the bank accounts of the taxpayer and the debtor;
4) the amount
owed by the debtor to the taxpayer;
5) the legal
particulars, official stamp, and signatures of the taxpayer and the debtor;
6) the date
on which the verification certificate was prepared.
3. On the
basis of the verification certificate of mutual settlements or the tax audit
report confirming the amount owned by the debtors, the tax authority shall
present a collection order against the debtor’s bank account to recover the tax
debt owed by the taxpayer.
4. The bank,
or institution performing certain types of banking operations, of a taxpayer’s
debtor shall be required to execute a collection order presented by a tax
authority to recover a taxpayer’s tax debt in accordance with the requirements
set forth in Article 50 of this Code.
5. Provided
that there is a verification certificate of mutual settlements prepared in
accordance with the requirements of this article, in the event that a debtor
effects payments in favor of a taxpayer within 90 business days of the moment
that a notice from a tax authority is presented, the tax authority shall have
the right to present a collection order against the debtor’s bank account to
recover the amount of the taxpayer’s tax debt up to the amount of payments
made.
Article 53.
Recovery of a tax debt through the sale of a taxpayer’s property subject to
restricted disposition
1. Tax
authorities shall have the right, without the consent of a taxpayer that is a
legal entity or individual entrepreneur, to take collection action against a
taxpayer’s property that is subject to restricted disposition up to the amount
of the tax debt in those cases in which there are insufficient funds or no
funds on the taxpayer’s bank accounts, the taxpayer has no cash, and there are
no funds on the bank accounts of the taxpayer’s debtors.
2. A taxpayer
shall be required to ensure the safekeeping and proper care of property subject
to restricted disposition until the restriction is lifted. In the event of a
failure to comply with this provision, the taxpayer shall be required to
provide reimbursement for expenses related to preparing the property subject to
restricted disposition for auction and shall bear liability for unlawful
actions with respect to said property in accordance with the laws of the
Article 54.
Procedure for the sale of a taxpayer’s property subject to restricted
disposition
for recovery of a tax debt
The sale of
property subject to restricted disposition shall be carried out at a special
auction, the procedure for the performance of which shall be determined by the
Article 55.
Compulsory issue of declared shares of a taxpayer - joint-stock company with
the state’s share in the authorized capital stock
In the event
that a tax debt is not discharged by a taxpayer - joint-stock company with a
share of the state in the authorized capital stock after all the measures
provided for under subitems 1)-4) of Article 49 of this Code have been carried
out, the authorized government agency shall have the right to file a petition
with the courts calling for a compulsory issue of declared shares, following
the procedure established by the legislation of the Republic of Kazakhstan.
Article 56.
Declaring a taxpayer bankrupt
1. In the
event that a legal entity or individual entrepreneur fails to discharge a tax
debt after all of the measures provided for under Article 49 of this Code have
been carried out, a tax authority shall have the right to pursue measures to
have the taxpayer declared bankrupt in accordance with legislative acts of the
Republic of Kazakhstan.
2. The
procedure for liquidation of a legal entity that has been declared bankrupt
shall be carried out in accordance with the legislation of the
Chapter 10. GROUNDS FOR TERMINATION OF A TAX
OBLIGATION
Article 57.
Termination of a tax obligation of an individual
A tax
obligation of an individual shall be terminated:
1) upon his
death;
2) upon entry
into force of a court decision declaring him to be deceased.
Article 58.
Termination of a tax obligation of a legal entity
A tax
obligation of legal entity shall be terminated:
1) following
its complete liquidation;
2) following
its complete reorganization through a takeover (with respect to the legal
entity that has been taken over), merger and spin-off.
2.
SPECIAL SECTION
Part 3.
General provisions
Chapter 11. TYPES OF TAXES AND OTHER MANDATORY
PAYMENTS TO THE BUDGET
Article 59.
General provisions
1. Taxes and
other mandatory payments to the budget established by this Code shall be in
force in the
2. Taxes
shall be divided into direct and indirect taxes. The indirect taxes shall
include the value-added tax and excise tax.
3. Taxes and
other mandatory payments to the budget shall be applied to the revenues of the
respective budgets following the procedure set forth in the Budget Code of the
Article 60.
Taxes
1. Corporate
income tax.
2. Individual
income tax.
3.
Value-added tax.
4. Excise
taxes.
4-1. Rental
tax on exported crude oil, gas condensate.
5. Taxes and
special payments of users of mineral resources.
6. Social
tax.
7. Land tax.
8. Tax on
means of transport.
9. Property
tax.
Article 61.
Fees
1. Fee for
state registration of legal entities and accounting registration of
affiliates and representative offices.
2. Fee for
state registration of individual entrepreneurs.
3. Fee for
state registration of rights to real property and real estate transactions.
3-1. Fee for
state registration of movable property mortgage and mortgage of a
water-craft or a water-craft being built;.
4. Fee for
state registration of radio-electronic equipment and high-frequency devices.
5. Fee for
state registration of means of transport.
6. {~}.
6-1. {~}.
7. {~}.
8. Fee for
state registration of medicines.
8-1. Fee for state registration of the rights on works and objects of related
rights, license contracts on use of works and objects of related rights;
9. Fee for
travel by motor vehicles on the territory of the
9-1) Fee for
the registration of mass media.
10. Auction
fee.
11. Annulled.
12. Licensing
fee for the right to engage in certain types of activity.
13. Fee for
issuing permits to television and radio broadcasting organizations to use the
radio frequency spectrum.
Article 62.
Charges
1. Charge for
the use of parcels of land.
2. Charge for
the use of surface water resources.
3. Charge for
environmental emissions.
4. Charge for
the use of wildlife resources.
5. Charge for
the use of forest resources.
6. Charge for
the use of specially protected natural areas.
7. Charge for
the use of the radio frequency spectrum.
7-1. Charge
for the provision of services in intercity and (or) long-distance telephone
communications.
8. Charge for
the use of navigable waterways.
9. Charge for
the placement of outdoor (visual) advertising.
Article 63.
Stamp duty
Stamp duty.
Article 64.
Customs payments
1. Customs
duty.
2. Customs
fees.
3. Payment
for a predecision.
4. Fees.
Chapter 12. REGULATIONS FOR TAX ACCOUNTING AND TAX
REPORTING
Article 65.
Regulations for tax accounting
1. Taxpayers
shall determine objects of taxation and objects related to taxation based on
the accrual method, following the procedure and under the conditions
established by this Code.
2. For the
purposes of taxations, any operation in foreign currency shall be converted
into the national currency of the
3. The
accounting of inventory for tax purposes shall be carried out in accordance
with accounting regulations.
4. With
respect to all taxes, barter transactions shall be treated as the sale of goods
(work, services) at the applicable prices, accompanied by the mandatory
documentation of these transactions in the form of invoices.
Article 66.
Preparation and storage of accounting records
1. Accounting
records shall consist of primary documents, accounting registers, and other
documents that serve as the basis for determining objects of taxation and
objects related to taxation, and also for calculating tax obligations.
2. Accounting
records shall be prepared in the form of paper documents and/or in electronic
form and shall be kept on file until expiration of the statute of limitations
established by this Code for each type of tax or other mandatory payment to
which the records apply, starting with the tax period following the period in
which the accounting records were compiled, except in those cases provided for
under items 3 and 4 of this article.
3. Accounting
records of taxpayers operating in accordance with a mining contract shall be
kept on file until expiration of the statute of limitations established by this
Code for the tax period following the period in which the contract expired.
4. Accounting
records that confirm the value of fixed assets, including those transferred
(obtained) under a financial leasing arrangement, shall be kept on file until
expiration of the statute of limitations established by this Code for the last
tax period in which depreciation deductions are calculated for each asset.
Accounting records that confirm the value of fixed assets not subject to
depreciation for taxation purposes shall be kept on file until expiration of
the statute of limitations established by this Code for the tax period in which
the assets are sold.
5. Primary
documents and accounting registers shall be prepared by a taxpayer in the
official language or in Russian.
If there are
certain documents that have been prepared in foreign languages, a tax authority
shall have the right to request that they be translated into the official
language or into Russian.
6. When
accounting records are prepared in electronic form, a taxpayer shall be
required to provide hard copies of these records at the request of tax
authorities for monitoring purposes and in the course of an audit.
Article 67.
Separate accounting and regulations for its performance
1. Taxpayers
who are engaged in types of activities for which different taxation conditions
are specified by this Code shall be required to maintain separate accounting of
the objects of taxation and objects related to taxation.
2. Separate
accounting shall be performed by taxpayers on the basis of accounting data
taking into accounts the details established by the present Code. Separate
accounting shall be performed separately for each type of activity, except as
otherwise provided under the present Article.
2-1. A user
of mineral resources shall be required to maintain separate accounting records
for the calculation of tax obligations related to operations performed in the
framework of the contract, as well as for the calculation of tax obligations
related to operations outside the scope of the given contract, except as
otherwise provided under the mining contract.
3. All income
and expenditures related to a particular type of activity must be supported by
the relevant accounting records.
Article 68.
Tax reporting
1. Tax
reporting shall consist of documents containing information about the
calculation of tax obligations, which are submitted by a taxpayer, a tax agent
to tax authorities, taking into account the provisions of Article 67 of this
Code.
2. Tax
reporting shall include the documents indicated in this item, as well as
appendixes and additional forms to them:
tax returns,
statements that are to be compiled by a taxpayer for each type of tax and other
mandatory payments to the budget, and also for mandatory pension contributions
to pension savings funds, as well as social allocations to the Social Insurance
State Fund;
application
for a patent to apply special tax regimes;
applications
for registration and re-registration of objects of taxation and objects related
to taxation, in accordance with Articles 397 and 531 of this Code;
applications
for a refund of the value-added tax from the budget;
applications
to apply the provisions of international agreements on the avoidance of dual
taxation;
registers of
invoices;
documentation
submitted by taxpayers who are subject to electronic monitoring in accordance
with this Code.
3. A tax
reporting is a written declaration and/or electronic document of a taxpayer or
a tax agent that is submitted to tax authorities in accordance with the
procedure established by this Code, which must contain information about the
objects of taxation and objects related to taxation, and also about the
calculation of tax obligations and other data related to the calculation and
payment of taxes and other mandatory payments to the budget.
4. In the
absence of certain data that are supposed to be reflected in a tax return and/or
statements, the relevant attachments to them established by the authorized
government agency shall not be submitted.
5. If the activity is temporary suspended
individual entrepreneurs, except for those applying special tax regimes for
peasant (owner-operated) farms and separate types of activity, private
notaries, lawyers shall submit to the tax authority with which they are
registered an application on temporary suspension of activity for a forthcoming
period according to the form established by authorized government agency. The activity shall be subject to temporary
suspension for the period stated in the application, but no more than for
twelve months.
A taxpayer
shall be entitled to submit next application on temporary suspension of the
activity within the period but not later than the date on which the current
period of temporary suspension of the activity is completed.
The
notification on temporary suspension of the activity or on refusal of temporary
suspension of the activity shall be sent to the tax authority within five
business days following the day on which the application is submitted. Presence
of tax arrears or failure to submit tax accounts in accordance with item 7-2 of
Article 69 of this Code shall entail the refusal of temporary suspension of
activity.
In case of
refusal for temporary suspension of activity a taxpayer shall fulfill the tax
obligations according to the procedure established under this Code.
The
notification on temporary suspension of the activity or on refusal of temporary
suspension of the activity shall be handed over to a taxpayer (representative)
personally over the signature or in other way confirming the fact of its
delivery and receipt.
Upon receipt
of the notification on temporary suspension of the activity by a taxpayer the
date stated in the application on suspension shall be considered the date of
temporary suspension of the activity.
Temporary
suspension of the activity shall be the ground not to file tax reporting for
forthcoming tax periods up to date of reactivation.
Article 69.
Procedure for the preparation and filing of tax reporting materials
1. Tax
reporting materials shall be prepared independently by a taxpayer, tax agent or
their representatives, following the procedure and forms established by the
authorized government agency in accordance with this Code.
Taxpayers who
are engaged in types of activities for which different taxation conditions are
specified by this Code shall maintain tax accounting separately for each type
of such activity.
Users of
mineral resources who are required to maintain separate accounting shall
prepare tax reporting materials separately for the operations performed in the
framework of the contract, as well as for operations outside the scope of the
given contract, except as otherwise provided under the mining contract.
2. Tax
reporting materials shall be prepared in the form of paper documents and/or in
electronic form in the official language or in Russian. When tax reporting
materials are prepared in electronic form, a taxpayer or tax agent shall be
required to provide hard copies of these records at the request of the
authorized government agency.
3. Tax
reporting in the form of paper documents shall be signed by the taxpayer or tax
agent (manager and chief accountant) or his authorized representative and they
shall be also certified by the official stamp of the taxpayer, tax agent or his
authorized representative. When tax reporting materials are prepared in
electronic form, the electronic document shall be certified by the electronic
digital signature of a taxpayer.
4. Annulled.
5. When a
taxpayer or tax agent prepares tax reporting materials, including those cases
in which the reporting materials are prepared by a representative, the taxpayer
or tax agent shall bear liability for the accuracy of the data indicated in the
tax reporting materials.
6. Tax
reporting materials shall be filed by a taxpayer or tax agent with the
respective tax authorities following the procedure and within the deadlines
established by this Code.
7. Within
three working days following the date when the decision on reorganization or
liquidation is made, the taxpayer (a legal entity) shall notify about it in
writing the tax authority.
In the event of reorganization of a taxpayer
(legal entity) by means of amalgamation, affiliation, de-merger or liquidation
of a taxpayer (legal entity), separate tax reporting materials (liquidating)
shall be prepared for each reorganized or liquidated taxpayer, from the
beginning of the tax period up to the day on which the reorganization or
liquidation is completed, on the basis of a transfer deed, separation or
liquidation balance sheets, respectively.
The
liquidating tax reporting materials shall
be submitted within three working days of the date on which the transfer deed,
separation or liquidation balance-sheet are passed, simultaneously with and an
application on examination of documents in connection with reorganization or
liquidation of a legal entity.
Tax reporting
materials (except for liquidating ones) the date of which does not coincide
with the date for submission of liquidating tax reporting shall be submitted
before the deadline established under the third paragraph of this item.
An
application on examination of documents in connection with reorganization of a
legal entity by means of splitting-off shall be submitted within three working
days of the day on which the separation balance sheet is passed.
The
provisions of this item shall not apply to legal entities which are reorganized
by means of reformation as well as by joining of another legal entity.
7-1. Within
three business days following the day on which the decision on termination of
entrepreneurial activity is made an individual entrepreneur shall notify about
it in writing the tax authority.
Within a
month following the day on which the decision on termination of entrepreneurial
activity is made, an individual entrepreneur shall file with a tax authority
the tax reporting materials covering the period from the beginning of the tax
period till the day on which the entrepreneurial activity was terminated.
At the same
time as the tax reporting materials an individual entrepreneur shall file a
statement of documentary audit performed in connection with the termination of
the entrepreneurial activity.
7-2. In case of temporary suspension of
activity as stated in item 5 of article 68 of this Code the tax reporting
materials shall cover the beginning of the tax period up to the date on which
the activity was suspended. The tax reporting materials mentioned in this item
shall be submitted simultaneously with the application on temporary suspension
of activity.
If next
application on temporary suspension of activity is submitted until expiration
of the current period of temporary suspension of activity the tax reporting
stipulated under this item shall not be submitted.
8. Taxpayers
and tax agents shall have the right to choose how to file their tax reporting
materials:
1) in person;
2) by
registered letter, with a return receipt;
3) in an
electronic form that allows for computer processing of information, in those
cases established by the authorized government agency.
9. The date
on which tax reporting materials are filed with a tax authority shall be the
date on which the tax authority receives the documents or the date of
notification of the delivery of reporting materials sent by electronic mail.
Tax reporting
materials delivered to a post office or other communications agency before
midnight on the last day of the time period established by this Code shall be
considered to have been filed on time, provided that the time and date they
were received by the post office or other communications agency are noted on
them.
10. Tax
reporting materials shall be accepted without prior in-house control.
Tax reporting
shall not be considered to have been filed with tax authorities in the event
that:
1) a
taxpayer’s registration number is not given or given incorrectly;
2) a tax
period is not indicated;
3) the
requirements of this Article concerning a signature and certification of tax
reporting are infringed;
4) the
electronic format structure established by the authorized government agency is
broken.
11. In the
event of keeping separate accounting the tax reporting materials shall be filed
separately for each type of activity, and as for the users of mineral resources
- for each mining contract, except as otherwise provided under this Code and/or
a mining contract.
Article 70.
Extension of the deadline for the filing of a tax return
1. When a
written (electronic) application is received from a taxpayer
prior to the deadline for the filing of a tax return and (or)
documentation submitted by taxpayers subject to electronic monitoring,
which are established by this Code, the authorized government agency shall have
the right to extend the deadline for the filing of the tax return by a period
of not more than three months.
2. An
extension of the deadline for the filing of a tax return in accordance with
this article shall not change the deadline for payment of the tax.
Article 71.
Changes and additions
to tax reporting materials
1. Changes
and additions to a tax return and statements shall be permitted until
expiration of the statute of limitations established by this Code, except as
otherwise provided by this article.
Introduction
of changes and additions into advance payment statements shall be permitted in
accordance with the procedure stipulated under article 126 of this Code.
2. Changes
and additions to a tax return and/or statement shall be made by a taxpayer, tax
agent through the preparation of a supplemental tax return and/or
statement for the tax period to which the given changes and additions apply.
3. A
supplemental tax return and/or statement shall indicate on the appropriate
lines only the amount of the difference that has been identified compared to
the previously submitted tax return and/or statement.
4. When a
supplemental tax return and/or statement is filed prior to the beginning of an
audit, taxes and other mandatory payments to the budget identified by the
taxpayer, tax agent shall be paid to the budget without the
assessment of fines.
Article 72.
Time period for keeping tax reporting materials on file
1. Tax
reporting materials shall be kept on file by taxpayers, tax agents, and tax
authorities until the expiration of the statute of limitations determined by
this Code.
2. In the
event of the reorganization of a taxpayer or tax agent that is a legal entity,
obligations related to the storage of tax reporting materials covering the
period that the reorganized entity was in operation shall be assumed by its
legal successor.
Chapter 13. PROVISIONS SPECIFIC TO TAX ACCOUNTING
OF CERTAIN TYPES OF OPERATIONS
§ 1. Provisions specific to taxation
when transfer prices are used
Article 73.
Monitoring the application of transfer prices
Tax service
authorities shall monitor the proper application of prices in transactions
following the procedure and in those cases provided for under legislative acts
of the
When it is
determined that a transaction price differs from a market price, tax
authorities shall make adjustments in objects of taxation and tax obligations
in accordance with the legislation of the
Article
73-1. Adjustment of objects of taxation
when applying transfer prices
When a
taxpayer determines independently in accordance with the legislation of the
Republic of Kazakhstan regulating transfer pricing issues that a transaction
price differs from a market price the taxpayer shall be entitled to adjust the
objects of taxation and tax liabilities in accordance with the legislation of
the Republic of Kazakhstan.
§ 2. Provisions specific to taxation
in other cases
Article 74.
Financial leasing
1. The
transfer of property under a leasing agreement concluded in accordance with the
legislation of the
1) the
leasing agreement provides for the transfer of ownership of property to a
lessee and/or the granting of the right to a lessee to acquire property at a
fixed price;
2) the
duration of the financial leasing agreement exceeds 75 percent of the service
life of the property transferred under the financial leasing;
3) current
(capitalized) value of leasing payments for the whole period of the financial
leasing exceeds 90 percent of the value of the property transferred under a
financial leasing.
The value of
property transferred (received) under a financial leasing agreement (through a
leasing arrangement) shall be determined at the point that the leasing
agreement is concluded.
The property
transferred under financial leasing shall be considered items of leasing to be
received as fixed assets by a lessee {~}.
For the
taxation purposes the transaction shall be considered as a purchase of fixed
assets by a lessee. A lessee shall be
considered as an owner of fixed assets, and the ;easing payments shall be
considered as payments for credit granted to a lessee.
2. For the
purposes of this article, the duration of a financial leasing arrangement shall
include an additional time period by which the lessee has the right to extend
the financial leasing arrangement under the terms of the agreement.
Article 75.
Common share ownership
In the case
of an agreement on common share ownership or joint entrepreneurial activity, or
another agreement that provides for two or more owners, but does not provide
for incorporation, each owner shall account for and shall be taxed with respect
to objects of taxation and objects related to taxation in accordance with the
procedure established by this Code, except for an owner of shares of the mutual
investment fund.
Article 76.
Procedure for determination of objects of taxation in certain cases
1. In the
event of a violation of the procedure for maintaining accounting records, if
accounting records are lost or destroyed, tax service authorities shall
determine objects of taxation and objects related to taxation on the basis of
indirect methods (assets, liabilities, turnover, costs, expenditures) in
accordance with the procedure established by the government agency in
coordination with the authorized government agency of the Republic of
Kazakhstan that is engaged in formation and realization of the state tax and
budget policy.
1-1. In the
event that a tax agent charges income to an employee for the whole business day
at the rate that is lower than minimal salary specified by the Law of the
Republic of Kazakhstan on republican revenue for the appropriate financial
year, the tax authorities shall determine an object taxed with a social tax on
the basis of the stated rate of minimal salary.
2. In the
event that an individual has shown income that is not consistent with
expenditures effected on personal consumption, including the acquisition of
property, tax authorities shall determine income and taxes on the basis of
expenditures effected by the taxpayer, taking into consideration income from
previous periods.
3. Income
shall also be subject to taxation in cases in which other persons and agencies
dispute the legality of the income that has been earned.
4. If income
is subject to transfer to the budget on the basis of a court decision in those
cases provided for by legislative acts of the
Part 4. Corporate income tax
Chapter 14. GENERAL PROVISIONS
Article 77.
Payers
1. Payers of
the corporate income tax shall include resident legal entities of the Republic
of Kazakhstan, with the exception of the National Bank of the Republic of
Kazakhstan and government institutions, as well as nonresident legal entities
doing business in the Republic of Kazakhstan through a permanent establishment
or earning income from sources in the Republic of Kazakhstan (referred to
hereinafter in this part as taxpayers).
2. Legal
entities that apply a special tax regime shall pay the corporate income tax in
accordance with Articles 368-377 and 385-397 of this Code.
Article 78.
Objects of taxation
Objects of
taxation with respect to the corporate income tax shall be:
1) taxable
income;
2) income
taxed at the source of payment;
3) net income
of a nonresident legal entity doing business in the
Chapter 15. TAXABLE INCOME
Article 79.
Taxable income
Taxable
income shall be defined as the difference between gross annual income and
deductions provided for under Articles 80-103 and 105-114 of this Code, taking
into account adjustments made in accordance with Article 122 of this Code.
Gross annual income shall be adjusted in accordance with Article 91 of this
Code.
§ 1. Gross annual income
Article 80.
Gross annual income
1. The gross
annual income of a resident legal entity shall consist of income receivable
(received) by it in the
The gross
annual income of a nonresident legal entity doing business in the
2. Gross
annual income shall include all types of income earned by a taxpayer,
including:
1) income
from the sale of goods (work, services);
2) income
from capital gains on the sale of buildings, structural installations (except
for oil and gas wells, and transfer units), as well as assets not subject to
depreciation;
3) income
from the write-off of liabilities;
4) income
from liabilities in default;
5) income
from the leasing of property;
6) income
from a reduction in the size of provisions created by banks and institutions
performing certain types of banking operations, which are permitted to create
provisions under the legislation of the Republic of Kazakhstan;
7) income
from the concession of a debt claim;
8) income
earned from agreeing to limit or halt entrepreneurial activity;
9) income
earned when the value of retired fixed assets exceeds the value balance of a
subgroup (group);
9-1) income
received from adjusting expenses on geological study and preparation work for
natural resource production, as well as other expenses of subsurface users;
10) income
earned when contributions to a fund to clean up after mineral extraction
operations exceed actual expenditures on the clean-up of mineral extraction
operations;
11) income
earned from the distribution of income from common share ownership;
12) fines,
penalties, and other types of sanctions charged to or acknowledged by a debtor,
other than fines returned to the budget that were improperly withheld
previously, if these amounts were not previously treated as deductions;
13)
compensation received for deductions taken previously;
14) property
received, work performed, and services provided free of charge;
15)
dividends;
15-1) {~};
16) interest
income;
17) excess of
an amount of positive exchange rate differential over an amount of negative
exchange rate differential;
18) winnings;
19)
royalties;
20) the
amount by which income earned exceeds expenditures effected in the operation of
facilities in the social sphere.
Article 81.
Income from the sale of goods (work, services)
1. Income
from the sale of goods (work, services) shall be the value of goods sold, work
performed, and services provided, with the exception of the value-added tax and
excise tax, except as otherwise provided by the legislation of the Republic of
Kazakhstan on matters pertaining to government monitoring of the application of
transfer prices.
2. Income
from the sale of goods (work, services) shall be subject to adjustment in the
event of:
1) the
complete or partial return of the goods;
2) a change
in the terms of the transaction;
3) a change
in the price, compensation for the goods (work, services) sold;
4) a
difference in the value of the goods (work, services) sold when they are paid
for in tenge.
An income
adjustment shall be performed based on the results of the tax period in which
the changes occurred.
Article 82.
Income from capital gains on the sale of buildings, structural installations,
(except for oil
and gas wells, and transfer units), as well as assets not subject to
depreciation
1. Income
from capital gains shall be generated in the sale of buildings, structural
installations (except for oil and gas wells, and transfer units), as well as
assets not subject to depreciation, except for assets redeemed for the state
needs in accordance with the legislation of the Republic of Kazakhstan. Assets
not subject to depreciation shall include:
1) parcels of
land;
2) unfinished
construction projects;
3)
uninstalled equipment;
4) fixed
assets and intangible assets not used by a taxpayer in the production of goods,
performance of work, or delivery of services;
5)
securities;
6) share
interest in a legal entity of any organizational-legal form, consortiums;
7) fixed
assets the value of which was previously taken in its entirety as a deduction
in accordance with the tax legislation of the Republic of Kazakhstan in effect
prior to January 1, 2000;
8) fixed
assets put into operation as part of an investment project, the value of which
was taken as a deduction in accordance with Articles 138-140 of this Code.
2. A capital
gain shall be defined as the difference between the sale value of said assets
and their original value, with the exception of those cases
referred to in items 3 through 5 of this article.
{~}.
3. When
buildings, structural installations (except for oil and gas wells, and transfer
units) used in entrepreneurial activity are sold, a capital gain (loss) shall
be defined as the difference between the sale value and the residual value
identified in the tax records.
4. When securities
and shares of interest are sold, a capital gain shall be:
for
securities with the exception of debt securities and shares of interest,- the
positive difference between the sale value and the purchase value (deposit);
for debt
securities - the positive difference, not including coupon income, between the
sale value and the purchase value, including depreciation of the discount
and/or premium as of the date of sale.
5. When fixed
assets mentioned in sub-items 7) and 8) of item 2 of this article are sold, the
capital gains shall be determined in the amount of the sale value.
Article 83.
Income from the write-off of liabilities
1. Income
from the write-off of liabilities shall include:
1)
liabilities of a taxpayer written off by a creditor including liabilities which
were not claimed by a creditor on the moment of confirmation of liquidating
balance at the liquidation of a taxpayer;
2)
liabilities written off in connection with expiration of the statute of
limitations established by legislative acts of the
3)
liabilities written off on the basis of a court ruling.
2. Income
earned as a result of the write-off of liabilities shall be equal to the amount
of accounts payable written off.
Article 84.
Income from liabilities in default
Liabilities
that have been incurred on goods (work, services) acquired, and also on income
and other payments owed to employees, defined in accordance with item 2 of
Article 149 of this Code, which have not been met within three years of the
moment they were incurred, shall be recognized as in default and shall be
included in a taxpayer’s gross annual income, with the exception of the
value-added tax, which is to be reinstated in mutual settlements with the
budget at the rate in effect when the debt was incurred.
Article 85.
Income from a reduction in the size of provisions created by banks
Income from a
reduction in the size of provisions created shall be recognized as the amount
of provisions that were previously treated as deductions, when a debtor
fulfills a requirement of a bank or institution performing certain types of
banking operations. In this case, the provisions shall be included as income in
an amount proportional to the debtor’s fulfillment of the requirement.
Provisions that were previously treated as deductions shall also be recognized
as income when there is a reduction in the requirements imposed on a debtor on
the basis of an agreement providing compensation for termination of a contract,
a novation agreement, concession of a right of claim through the conclusion of
a cession agreement and/or on other grounds provided for by the legislation of
the Republic of Kazakhstan. In addition, reductions in provisions previously
treated as deductions when there is a reclassification of requirements shall be
recognized as income.
Article 86.
Income from the concession of a debt claim
Income from
the concession of a debt claim shall be income earned by a taxpayer, which is
defined as the positive difference between the amount payable by a debtor on
the principal of a claim, including amounts paid by the debtor in excess of the
principal, and the acquisition value of the debt paid by the taxpayer, as
well as income of a taxpayer transferring the right to claim for debt, which
are determined as positive difference between the sale value of the right to
claim for debt and the amount of claim reflected in the accounting of a person
transferring the right of claim as of the date of sale of the right of claim.
Article
87. Income earned when the value of
retired fixed assets exceeds the value balance
of a subgroup (group)
If the value
of retired fixed assets in a subgroup (for group I) or a group (for groups II,
III and IV) exceeds the value balance of the subgroup (for group I) or group
(for groups II, III and IV) at the beginning of a tax period, taking into
account the value of fixed assets received within the tax period, the
difference shall be included into the gross annual income. The value balance of said subgroup (for group
I) or group (for groups II, III and IV) at the end of the tax period shall be
equal to zero.
Article 87-1.
Income earned when expenses are adjusted on geological study and preparatory work
for mining operations as well as when other expenses of the users of mineral
resources are adjusted
If the amount
of income earned when expenses forming separate group are adjusted in
accordance with Article 101 of this Code exceeds the amount of said group at
the beginning of the tax period taking into account the expenses incurred
within the tax period, the excess amount shall be included in the gross annual
income. The amount of said group at the end of the tax period will then be
equal zero.
Article 88.
Income earned when contributions to a fund to clean up after mineral extraction
operations exceed actual expenditures on the clean-up of mineral extraction
operations
1. In the
event that actual expenditures on the clean-up of mineral extraction operations
are less than the contributions made to said fund, the difference shall be
included in the gross annual income of the user of mineral resources.
2. In the
event that a user of mineral resources does not perform work to clean up after
mineral extraction operations during the period specified in the mineral
extraction clean-up program approved by the relevant authorized government
agency, contributions to the fund to clean up after mineral extraction
operations (the reserve funds) which were treated as deductions shall be
included in the gross annual income of the tax period in which they were
supposed to be performed.
Article 89.
Compensation received for deductions taken previously
1. Income
received in the form of compensation for deductions taken previously shall
include:
1) claims
classified as defaults which were previously treated as deductions and for
which reimbursement was received in subsequent tax periods;
2) funds
received from the state budget to cover costs (expenditures), except
for subsidies received from the state budget funds;
3) other
compensation received as reimbursement of expenditures (losses), which were
previously treated as deductions.
Compensation
that is received shall be treated as income earned in the tax period in which the
reimbursement was provided.
2. The amount
of insurance premiums to be refunded (returned) by an insurance organization to
an insured party upon expiration or early termination of a non-savings
insurance agreement, which were previously treated as deductions by the insured
person, shall be included in gross annual income the reported tax period in
which they were returned (subject to return) to the insured person {~}.
Article 90.
Property received free of charge
1. Any
property, as well as work and services, received by a taxpayer free of charge
shall be treated as income, except as otherwise provided under this article.
2. The
following shall not be treated as income:
1) property
received as an investment in authorized capital;
2) subsidies
received from the state budget.
3) amount of
obligatory, additional and emergency bank payments received by the organization
carrying out obligatory collective guaranteeing (insurance) of contributions
(deposits) of individuals;
4) amount of
obligatory and emergency payments made by insurance agencies, which is received
by the Fund of insurance payments guarantee;
5) amount of
money received by the organization carrying out obligatory collective
guaranteeing (insurance) of contributions (deposits) of individuals, and by the
Fund of insurance payments guarantee by way of meeting their claims on
reimbursed contributions (deposits) and paid guarantee and compensatory damage.
Article
90-1. The amount by which income earned
exceeds expenditures effected in the operation
of facilities in the social sphere.
1. The taxpayer’s aggregate annual income shall
include the amount by which income earned exceeds expenditures payable (paid)
in the operation of facilities in the social sphere.
2. Facilities in the social sphere shall include
fixed assets and intangible assets recorded in a taxpayer’s accounting balance
sheet in accordance with the legislation of the Republic of Kazakhstan on
business accounting and financial statements, as well as according to standards
of business accounting, and used by a taxpayer in the following types of
activities:
1) medicine;
2) activities in the area of pre-school
education and child development; elementary, basic, secondary, and supplemental
general education; elementary, secondary, higher, and post-graduate vocational
and professional education; retraining and professional development,
3) activities
in the sphere of science, physical training and sports, culture, rendering
services on preservation of historical and cultural heritage, valuable archival
materials, as well as in the sphere of social protection and social service of
children, elderly and disabled persons;
4) activities
on organization of public catering for employees;
5) organization of leisure activities for
employees, members of their families, employees and members of the families of
affiliated persons, as well as using units of housing stock.
For the
purposes of this article receipts and expenditures shall be determined on the
data of accounting in accordance with the legislation of the
Article 91.
Adjustment of gross annual income
1. The
following shall be excluded from taxpayers’ gross annual income:
1) dividends;
1-1) interest on debt securities which were
purchased at the special trade site of the regional financial center of the
city of
2) the amount
by which the value of one’s own stocks exceed their face value, received by an
issuer at the time of placement, and capital gains received from the sale of
one’s own stocks by the issuer;
3) capital
gains from the sale of stocks and bonds that are on the stock exchange’s
official lists on the disposal date on the stock exchange through public
auction at the top and the second top of listing category;
3-1) capital gains from the sale of debt
securities which were admitted to the special trade site of the regional
financial center of the city of Almaty, in the event that they were involved
into civil transactions at that trade site;
4) income
from operations with government securities and agent’s bonds;
5) the value
of property received in the form of humanitarian assistance in the event of
natural and manmade emergencies, which is used for its designated purpose;
6) the value
of fixed assets received by a republican state enterprise free of charge from a
government agency or republican state enterprise on the basis of a decision by
the Republic of Kazakhstan government;
7) investment
income received in accordance with the legislation of the
7-1) income from the concession of a debt claim,
which is received by a special commercial credit company under the
securitization transaction in compliance with the legislation of the
8) investment
income received in accordance with the legislation of the
9) investment
income received by mutual funds and joint-stock investment funds on the
accounts in custodians, in accordance with the legislation of the
10) {~};
11) income received by a legal entity –
participant of the regional financial center of the city of
12) cost of the property legalized in accordance with the legislative act of the
2. In the
event of a changeover to a different method for the valuation of inventories
than the one that was used by a taxpayer in a previous tax period, the
taxpayer’s gross annual income shall be increased by the amount of a positive
difference and reduced by the amount of a negative difference resulting from
the application of the new valuation method.
The change to
a different method for the valuation of inventories shall be made
by a taxpayer starting with the beginning of a tax period {~}.
§ 2. Deductions
Article 92.
Deductions
1.
Expenditures by a taxpayer that are related to earning gross annual income
shall be deductible when determining taxable income, with the exception of
expenditures that are not deductible in accordance with this Code.
2.
Expenditures taken as deductions pursuant to this Code shall be in compliance
with the relevant limits.
Deductions
shall be taken by a taxpayer provided that there are documents supporting the
expenditures related to earning gross annual income. The given expenditures
shall be taken as deductions in the tax period in which they were actually
effected, with the exception of prepaid expenses. Prepaid expenses shall be
taken as deductions in the tax period to which they apply.
3. Losses
incurred by natural monopolies shall be deductible within the limits
established by the legislation of the
4. In the
event that the same costs are indicated under several expenditure items, when
calculating taxable income these costs shall be deducted only once.
5. Fines,
penalties, and sanctions related to earning gross annual income that have been
assessed or recognized, with the exception of those payable to the state
budget, shall be deductible.
6. Membership
fees of the subjects of a private enterprise paid by a taxpayer to the
associations of the subjects of private enterprises shall be deductible in
compliance with the Law of the Republic of Kazakhstan on private enterprises
within the limits of one monthly reference indicator defined by the Law on
republican budget for an appropriate financial year for one employee,
proceeding from the employees on pay-roll on average for a year.
Article 93.
Deduction of compensation related to business travel and representation
expenses
1.
Compensation related to business travel that is deductible shall include:
1)
expenditures actually effected on travel to the destination and back, including
the payment of booking costs;
2)
expenditures actually effected on accommodations, including the payment of
booking costs;
3) per diem
expenses paid for the duration of a business trip within the
4) per diem
expenses paid for the duration of a business trip outside the
5)
expenditures incurred by a taxpayer when obtaining an trans visa ( cost of a visa, consular
services, mandatory medical insurance).
2.
Representation expenses shall include a taxpayer’s expenditures on hosting and
providing services for persons, which are effected for the purpose of
establishing or maintaining mutual cooperation, and also for participants who
have come to attend a meeting of the board of directors, or expenditures on
holding a shareholders’ general meeting. Representation expenses shall include
expenditures on holding an official reception for said persons, providing
transportation services for them and expenses on meals during negotiations, as
well as expenses on payment for the services of interpreters and translators
who are not regular staff employees.
Expenditures
on the organization of banquets, recreational activities, entertainment, or
leisure activities shall not be treated as representation expenses and shall
not be deductible.
Representation
expenses shall be deductible within the standard amounts established by the
Article 94.
Interest deductions
1. Interest
deductions shall include:
1) interest
paid on credits (loans) received, including in the form of financial leasing,
with the exception of interest on credits (loans) received for construction and
paid during the construction period;
2) annulled;
3) the
discount or coupon (including the discount or premiums) paid by an issuer to
holders of debt securities in accordance with the terms of their issue and
placement;
3-1) payments under a bill;
4) interest
on contribution (deposits).
Interest
deductions shall be made within the limits established by this Article.
2. An
interest deduction shall be effected up to an amount calculated as follows:
an interest
amount paid by a taxpayer to a resident for the tax period
plus
an amount
calculated as the product of the ratio of average annual amount of the owned
capital to the average annual amount of liabilities, limiting ratio and
interest amount paid by the taxpayer to a nonresident for the tax period.
3. For the
purposes of item 2 of this Article:
1) average
annual amount of the owned capital is equal to arithmetic middling of the
amounts of owned capital at the end of each month of the reporting tax period;
2) average
annual amount of liabilities is equal to arithmetic middling of the maximum
amounts of liabilities on which the interest is paid, during each month of the
reporting tax period;
3) a limiting
ratio for financial organizations is equal to 7, for other legal entities – 4.
Article 95.
Deductions for defaulted liabilities that have been paid
In the event
that defaulted liabilities which were previously treated as income have been
paid by a taxpayer to a creditor, the amount of payment made may be deducted.
This deduction shall be taken up to the amount previously treated as income, in
the tax period in which the payment was made.
The procedure
of the deduction stipulated by this Article shall also apply in the event of
payment of liabilities, which were previously treated as income in accordance
with Article 83 of this Code.
Article 96.
Deductions for defaulted claims
1. Defaulted
claims are claims that have arisen as a result of the sale of goods,
performance of work, or delivery of services to resident legal entities and
individual entrepreneurs of the Republic of Kazakhstan, and also to nonresident
legal entities doing business in the Republic of Kazakhstan through a permanent
establishment, that have not been met within three years of the moment the
claim arose; claims that have arisen on goods sold, work performed, and
services provided and have not been met in connection with the fact that the
debtor taxpayer has been declared bankrupt in accordance with the legislation
of the Republic of Kazakhstan shall also be considered defaulted claims.
2. Claims
that are recognized as being in default in accordance with this Code shall be
deductible.
In taking
defaulted claims as deductions the taxpayer shall provide the documents
confirming that the defaulted claim was
recorded, and the documents are to be entered in accounting records at the time
the deductions are taken or to be attributed to expenses in the accounting
records for the previous periods.
3. In the
event that a debtor is declared bankrupt, in addition to the documents referred
to in item 2 of this article, it is also necessary to present the court
decision declaring the debtor bankrupt and the decision of judicial authorities
removing the debtor from the State Register. Provided that these conditions are
met, a taxpayer shall have the right to deduct the amount of a defaulted claim
based on the results of the tax period in which the debtor taxpayer was
declared bankrupt.
Article 97.
Deductions for contributions to reserve funds
1. A user of
mineral resources that is operating on the basis of a contract concluded in
accordance with the legislation shall deduct contributions to the fund to clean
up after mineral extraction operations (the reserve fund) related to the
completion of mining operations at the given deposit.
The amount of
the contributions and the procedure for making contributions to the fund to
clean up after mineral extraction operations shall be established by the mining
contract.
2. Banks and
institutions performing certain types of banking operations shall have the
right to deduct expenditures on the creation of provisions (reserves) against
problem and bad assets, contingent liabilities, except for assets and
contingent liabilities presented in favour of affiliated persons or of the
third parties under the liabilities of affiliated persons (except for assets
and contingent liabilities of credit companies): deposits, including balances
on correspondent accounts placed with other banks; credits (with the exception
of financial leasing) granted to other banks and clients; accounts payable on
documentary settlements and guarantees; contingent liabilities on unpaid
letters of credit, issued or confirmed guarantees. The procedure for the
classification of assets and contingent liabilities in the problem and bad
category shall be determined by the authorized government agency on regulation
and supervision of the financial market and financial institutions in
consultation with the authorized government agency.
For the
purposes of this item an affiliated person is treated as:
1) an
affiliated person of a bank and (or) an institution performing certain types of
banking operations in accordance with the legislative acts of the
2) a person
having special relations with a bank in accordance with the legislative acts of
the
3) a spouse
of the persons indicated in subitems 1) and 2) of this item;
4) a legal
entity in which the person indicated in subitems 1) - 3) of this item is a big
partner and (or) a chief;
5) a person
that is a big partner and (or) a chief, near relation, spouse of the persons
indicated in subitems 1) - 3) of this item.
3. Deductions
shall not be taken for contributions to reserve funds, other than the
deductions provided for under this article.
Article 98.
Deductions for expenditures on research and scientific-and-technical work
Expenditures
on research and scientific-and-technical work, other than expenditures on the
acquisition of fixed assets, on their installation, and other outlays of a
capital nature, shall be taken as deductions. The basis for the treatment of
these expenditures as deductions shall be planning and estimate documentation,
a certificate of the work performed, and other documents confirming the
performance of the relevant research and scientific-and-technical work.
Article 99.
Deduction of expenditures on insurance premiums
1. Insurance
premiums that are payable (paid) by an insured person under insurance
agreements, with the exception of insurance premiums under savings insurance
agreements, shall be deductible.
2. Banks
participating in the collective guarantee (insurance) system for personal
deposits shall have the right to deduct the mandatory calendar, supplemental,
and emergency contributions transferred in connection with the guarantee
(insurance) of personal deposits.
Article 100.
Deduction of expenditures on social payments and education
1. The
following expenditures of a taxpayer shall be deductible in the amount determined
by the legislation of the
1) charged to
pay temporary incapacity for work of employees;
2) charged to
pay maternity leave;
3) earmarked
to pay compensation to an employee (former employee) for injuries sustained on
the job or other health impairment in connection with the performance of
his/her job (official) duties;
4) charged to
make social allocations to the Social Insurance State Fund.
2. Voluntary
vocational pension contributions paid by a taxpayer under agreements on pension
provision at the expense of voluntary vocational pension contributions shall be
deductible within the limits established by the legislation of the
3. An employer’s expenses on education,
professional development or retraining of an employee shall be deductible in
compliance with the legislation of the
4. A taxpayer’s expenditures on training
of an individual that does not have labor relations with the taxpayer, on the
speciality connected with the taxpayer’s production activity, shall be
deductible, provided that the following conditions are met:
1) the
contract is concluded with an individual to work for the taxpayer for not less
than three years;
2) an individual gets the appropriate level of
education for the first time;
3) an individual is trained in the
5. For the purposes of this article the
expenditures on training shall include the following:
1) expenditures actually incurred to pay
training;
2) expenditures on residence and nutrition of a
person to be trained according to the standards established by the government
of the
3) actually
incurred expenses on a trip to the place of training and a return trip after
the training completion.
Article 101.
Deductions for expenditures on geological surveys and preliminary work
for the extraction of natural resources and other deductions for users of
mineral resources
1.
Expenditures effected by a user of mineral resources before the moment mineral
extraction begins after the commercial discovery, for geological surveys,
exploration, and preliminary work for the extraction of minerals including
expenditures on evaluation and set-up period, general administrative
expenses, and signing bonuses and commercial discovery bonuses that are paid,
including expenditures on acquisition of fixed assets and intangible assets and
other expenditures subject to deduction in accordance with this Code,
except for the expenditures on sale of extracted mineral resources, shall
comprise a separate group and shall be deducted from gross annual income in the
form of depreciation deductions from the moment mineral extraction begins after
commercial discovery of mineral resources, in accordance with standard rates
established at the discretion of the user of mineral resources, but which are
not to exceed a maximum depreciation rate of 25 percent.
For the
purposes of the present Article the extraction after the commercial discovery
shall be treated as the beginning of commercial production of mineral resources
after the resources have been confirmed by the authorized agency in the sphere
of technological study, protection and use of mineral resources.
Such
expenditures incurred after a separate group has been formed and up to the
moment mineral extraction begins after the commercial discovery shall increase
said group.
These
expenditures shall be subject to an adjustment in which they are reduced by the
amount of income earned by the user of mineral resources from activity carried
out under the contract that has been concluded, during the period that
geological surveys and preliminary work for the extraction of natural resources
are being carried out, including expenditures on the transfer of the part of
the right to subsurface use with the exception of:
1) income
earned from the sale of minerals;
2) income
that is to be excluded from gross annual income in accordance with Article 91
of this Code.
2. The
procedure established under item 1 of this article shall also apply to
expenditures on sale of intangible assets borne by a taxpayer in connection
with the acquisition of a right to subsurface use.
3.
Expenditures actually borne by a user of mineral resources on the training of
Kazakh personnel and the development of the social sphere in the regions shall
be deductible up to the amounts established by the mining contracts.
Article 102.
Deductions for excess of an amount of negative exchange rate differential over
an amount of positive exchange rate differential
In the event
that an amount of negative exchange rate differential exceeds an amount of
positive exchange rate differential the excess amount shall be deductible.
Article 103.
Deduction of taxes
1. Taxes paid
to the state budget up to the assessed amounts shall be deductible, with the
exception of:
1) taxes
excluded prior to the determination of gross annual income;
2) the
corporate income tax and taxes on income paid on the territory of the
3) the excess
profits tax.
2. Taxes paid
in the current tax period for a previous tax period shall be deducted in the
tax period in which they were paid.
Article 104.
Expenditures that are not deductible
The following
shall not be deductible:
1)
expenditures not related to earning gross annual income;
1-1) expenditures on operations with a taxpayer
that is recognized by the court as a
false enterprise from the moment on which the criminal activities begin as the
court determines;
1-2) expenditures on operations with an inactive
legal entity conditionally excluded from the State register of taxpayers of the
Republic of Kazakhstan , from the moment on which such exclusion took place;
2)
expenditures on the construction and acquisition of fixed assets, intangible
assets and other expenditures of a capital nature incurred by a taxpayer, not
connected with gaining of aggregate annual income;
3) fines and
penalties payable (paid) to the state budget, except for fines and penalties
payable (paid) to the state budget under the agreements of state purchases;
4)
expenditures related to earning gross annual income that exceed the standards
for deductions established by this Code;
5) other
mandatory payments to the budget payable (paid) in excess of the standards
established by regulatory legal acts of the Republic of Kazakhstan;
6)
expenditures on the construction, operation, and maintenance of objects not
used for entrepreneurial activity;
7) the value
of property transferred, work performed, and services provided by a taxpayer
free of charge;
8) the amount
of additional payment made by a mineral resources user carrying out activity
under a production sharing contract.
§ 3. Deductions for fixed assets
Article 105.
Fixed assets
Fixed assets
are fixed capital and intangible assets recorded in a taxpayer’s accounting
balance sheet in accordance with the legislation of the Republic of Kazakhstan
on business accounting and financial statements as well as according to
standards of business accounting, and used to earn gross annual income, except
for fixed capital and intangible assets placed in operation by a mineral
resources user before the moment the extraction begins after the commercial
discovery and recorded for the purposes of taxation in accordance with Article
101 of this Code.
Article 106.
Value of fixed assets
1. The
original value of fixed assets shall include expenditures on their acquisition,
production, construction, assembly and installation, as well as other costs
that increase their value, except costs that a taxpayer has the right to take
as deductions in accordance with Articles 92 – 103 of this Code.
2. When or
founders partners invest fixed assets as their contribution to authorized
capital, the original value of these assets shall be the value determined in
accordance with the civil legislation of the Republic of Kazakhstan.
When fixed
assets are received free of charge, the original value shall be determined on
the basis of data in the acceptance certificate for said assets, but it must
not exceed their market value.
3. Interest
on credits (loans) received for construction that is paid (payable) during the
construction period shall be included in the construction cost of the project.
4. The
original value of intangible assets shall be comprised of expenditures on their
acquisition, and/or creation, including the expenditures of founders and
partners.
5. The value
of fixed assets shall be treated as deductions through the calculation of
depreciation deductions following the procedure and under the conditions
established by this Code.
Article 107.
Calculation of depreciation deductions for fixed assets
1. The
calculation of depreciation deductions for fixed assets shall be based on
depreciation subgroups, groups. Fixed assets that are not subject to
depreciation shall include:
1) land;
2)
annulled;
3) museum
collections;
4)
architectural monuments and works of art;
5) highways,
sidewalks, boulevards, public squares;
6) unfinished
capital construction;
7) materials
in film archives;
7-1) state
standards for the units of volumes in the
8) fixed
assets, the value of which was previously deducted in full in accordance with
the tax legislation of the Republic of Kazakhstan in effect prior to January 1,
2000;
9) fixed
assets put into operation as part of an investment project, the value of which
is to be deducted (was deducted) in accordance with Articles 138-140 of this
Code.
2. Depreciation deductions for each subgroup,
group shall be calculated by applying a depreciation rate, but not higher than
the marginal one, established under Article 110 of this Code, to the value
balance of the subgroup, group at the end of the tax period.
In the event
of the liquidation or reorganization of a taxpayer, depreciation deductions
shall be adjusted for the time it was in operation during the tax period.
3.
Depreciation deductions for buildings and structural installations (except for
oil and gas wells, and transfer units) shall be determined separately for each
object, and the value of capital assets from group I shall be equal to the
value balance of a sub-group.
Article 108.
Determination of the value balance of depreciation subgroups, groups
1. At the beginning of a tax period, totals
shall be determined for each depreciation subgroup (for group I) group, which
are called the value balance of a subgroup (for group I), group.
The value
balance of group I consists of the value balances of subgroups for each object
of capital assets and the value balance of a subgroup, which is formed in
compliance with item 2-1 of Article 113 of this Code.
2. The value
balance of the subgroup (for group I), group at the end of the tax period shall
be defined as follows:
the value
balance of the subgroup (group I), group at the beginning of the tax period,
defined as the value balance of the subgroup (group I), group at the end of the
preceding tax period, less the amount of depreciation deductions calculated in
the preceding tax period, and taking into account adjustments made in
accordance with Article 111 and Article 113 of this Code,
plus
fixed assets
received in the tax period at the value determined in compliance with Article
109 of this Code,
minus
fixed assets
retired in the tax period according to the procedure determined under Article
109 of this Code.
3. The value
balances of subgroups as of January 1, 2006 determined in compliance with the
tax legislation of the Republic of Kazakhstan which is in effect until January
1, 2006, taking into account the fixed assets on which double rate of
depreciation was used in 2005, shall be divided into groups determined in item
1 of Article 110 of this Code and according to the procedure determined by the
authorized government agency.
Article 109.
Receipt and retirement of fixed assets
1. When they
are purchased, including when they are obtained under a financial leasing
contract by a licensee, or received during the construction, or obtained free of charge, or obtained as a
contribution to authorized capital, fixed assets that have been received shall
be registered at the value determined in accordance with Article 106 of this
Code according to the following procedure:
for group I –
they form the value balance of the appropriate subgroup;
for groups
II, III, IV - they are included into the value balance of the group.
2. Retired
fixed assets shall reduce the value balance of the appropriate subgroups (for
group I) or the value balance of groups II, III and IV):
when they are
sold or transferred under a financial leasing arrangement - by the sale value;
when they are
transferred as a contribution to authorized capital - by the value determined
in accordance with Article 106 of this Code;
when the
property is seized by a founder, partner – by the value determined by the
participants of the transaction;
when they are
written off, lost, destroyed, spoiled, or if they have disappeared, in the
event that the fixed assets are insured - at the value determined on the basis
of insurance payments paid to the insured party by the insurance organization
in accordance with an insurance agreement, in other cases – by the depreciated
value determined for the tax purposes (for group I);
when they are
transferred free of charge - at their book value.
3. If only
part of a fixed asset is sold, the value of the fixed asset at the time of sale
shall be divided between the parts remaining and sold.
Article 110.
Maximum depreciation rates for fixed assets
1.
Depreciable fixed assets shall be divided into groups with the following
maximum depreciation rates:
|
Group ¹ |
Fixed
assets group |
Maximum depreciation (%) |
|
I |
Buildings, structural installations (except
for oil and gas wells, and transmission facilities) |
10 |
|
II |
Machinery and equipment, except for machinery
and equipment used for oil-and-gas production |
25 |
|
III |
Office equipment and computers |
40 |
|
IV |
Fixed assets not included into other groups |
15 |
2.
For fixed assets being put into operation on the territory of the Republic of
Kazakhstan for the first time, a taxpayer shall have the right in the first tax
period in which they are in use to calculate depreciation deductions at twice
the regular depreciation rates on the condition that the given fixed assets are
used for purposes of earning gross annual income for at least three years. In
the first tax period in which they are in use, these fixed assets shall be
recorded separately from the value balance of the group. In the following tax
period, these fixed assets shall be included in the value balance of the
appropriate group.
Article 111.
Other deductions for fixed assets
1. After all
of the fixed assets in a subgroup (for group I) or all of the fixed assets in a
group (for groups II, III and IV) have been retired, the value balance of the
given subgroup (for group I) or a group (for groups II, III and IV) shall be
deducted at the end of the tax period.
2. A taxpayer
shall have the right to take the amount of the value balance of a subgroup (for
group I) or a group (for groups II, III and IV) as a deduction provided that
the value balance of the subgroup (for group I) or group (for groups II, III
and IV) at the end of a tax period is less than 300 times the monthly reference
indicator.
3. A taxpayer
shall have the right to take additional deductions for fixed assets in
accordance with Articles 138-140 of this Code.
Article
111-1. Annulled.
Article 112.
Fixed assets transferred (received) under financial leasing conditions
1. The value
of fixed assets transferred (received) under a financial leasing arrangement
(through financial leasing) shall be recorded in the subgroup, group value
balance of the lessee.
2. The value
balance of the respective subgroup, group of the lessor must be reduced by the
amount of the fixed assets transferred under a financial leasing arrangement if
the assets were included in the subgroup, group value balance before they were
transferred under the financial leasing arrangement.
Article 113.
Deductions for repair expenditures
1. A
deduction shall be allowed for each group on the basis of actual expenditures
effected by a taxpayer for the repair of the following fixed assets:
1) included in said group;
2) recorded
in a taxpayer’s balance sheet in accordance with the legislation of the
2. Actual
expenditures on the repair of fixed assets, with the exception of the
expenditures to be deductible in compliance with Article 92 of this Code, which
are connected with replacement of details (parts) and components
of fixed assets for the purposes to maintain the fixed assets in compliance
with the technical documents, which do not extend the rated reserve and do
not increase the productive capacity of
the fixed assets, shall be deducted for each group within the following limits
established on the basis of the value balance of the group at the end of the
tax period:
|
Group ¹ |
Group name |
Maximum (%) |
|
I |
Buildings, structural installations (except
for oil and gas wells, and transmission facilities) |
15 |
|
II |
Machinery and equipment, except for machinery and equipment used for oil-and-gas production |
25 |
|
III |
Office equipment and computers |
15 |
|
IV |
Fixed assets not included into other groups |
15 |
2-1. Anything in excess of this limit given in
item 2 of this Article shall be registered in the following order:
1) for group
I:
in the event
that at the end of the tax period facilities included in the value balance of a
subgroup have been actually retired - shall reduce the appropriate amount of
the capital gains or of the income earned from excess in value of the retired
fixed assets above the value balance of the subgroup in proportion to actual
expenses and/or shall not increase the appropriate value balance of the
subgroup;
in other
cases – shall increase the proper value balance of the subgroup in proportion
to actual expenditures;
for fixed
assets not included in the value balance of the group - shall form the value
balance of a separate subgroup, and in subsequent tax periods such expenditures
shall increase said balance of the subgroup;
2) for groups II, III and IV:
in the
presence of the value balance - shall increase the value balance;
in the
absence of the value balance of a group – shall form the value balance of the
group at the beginning of the consecutive tax period.
3.
Expenditures on repair effected at the expense of subsidies received from the
state budget shall not be taken as deductions and shall not increase the value
balance of groups.
4.
Expenditures connected with replacement of details (parts) of fixed assets in
order to maintain the facilities in compliance with the technical documents,
which do not extend the rating reserve of the fixed assets and do not increase
their production capacities, and which are incurred by a leasee with respect to
rented fixed assets but not reimbursed by a leaser under a leasing contract
shall be deductible according to Article 92 of this Code.
5. The amount of actual expenditures on repair
of fixed assets placed in operation within the framework of the investment
project, the value of which is to be deducted (was deducted) in compliance with
Articles 138 through 140 of this Code shall be deductible according to the
procedure determined in items 2 and 2-1 of this Article.
§4. Income and deductions on
long-term contracts
Article 114.
Income and deductions on long-term contracts
1. Income and
deductions pertaining to long-term contracts shall be recorded throughout a tax
period to the extent that they are actually carried out.
A long-term
contract shall be a contract (agreement) for the shipment of goods, performance
of work, or delivery of services with a term of more than one year.
2. The
portion of a contract that has been carried out shall be determined by
comparing the amount of expenditures effected before the end of the tax period
to the total amount of expenditures under the given contract.
Chapter 16. PROVISIONS SPECIFIC TO THE TAXATION OF
CERTAIN
CATEGORIES OF TAXPAYERS
§1. Taxation of insurance
(reinsurance) organizations
Article 115.
Object of taxation
1. The object
of taxation with respect to the corporate income tax on insurance (reinsurance)
organizations, as it applies to their performance of insurance and reinsurance
activity, shall be income in the form of insurance premiums receivable
(received) from insured persons and reinsured persons under insurance
(reinsurance) agreements over the course of the tax period, and reduced by the
amount of insurance premiums paid back in the event that contracts of insurance
(reinsurance) are abrogated as well as by the amount of insurance premiums paid
under the reinsurance agreements and obligatory contributions to the insurance
payment guarantee fund.
The following
types of income derived from insurance activity shall not be object of taxation
of insurance (reinsurance organization:
1) commission
fee payable (paid) under the reinsurance agreements;
2) investment
income, as well as exchange rate income, payable (paid) by placing assets of
insurance (reinsurance) organization into deposits, securities and other
financial instruments;
3) exchange
rate on revaluation of accounts receivable and payable which are related to the
reinsurance agreements;
4) a
reinsured person’s share in insurance payments and expenditures on regulation
of insured accident in accordance with the reinsurance agreement;
5) income on
claims by way of subrogation (recourse) from the third parties under the
insurance (reinsurance) agreements;
6) reduction
of the size of insurance reserves within a tax period, except for allocations
into insurance reserves which were treated as deductions according to the tax
legislation of the Republic of Kazakhstan being effective to January 1, 2002;
7) income on
loans granted to insured persons under the savings insurance agreements;
8) income on
problem liabilities from insurance activity, except for problem liabilities the
expenditures on which were treated as deductions in accordance with the tax
legislation of the Republic of Kazakhstan being into effect till January 1,
2002;
9)
compensatory payments made by the Fund of guarantee of insurance payments of an
insurance organization which is a participant of the system of guarantee of
insurance payment, to pay insurance premiums under a contract of mandatory
insurance made with an insurer of an insurance organization undergoing
compulsory liquidation;
10) the amount by which the value of one’s own
stocks exceeds their face value, received by an issuer at the time of
placement, and capital gains received
from the sale of one’s own stocks.
2. The object
of taxation with respect to the corporate income tax on income receivable
(received) from other activity not referred to in item 1 of this article shall
be taxable income, calculated as the difference between gross annual income and
deductions determined according to the procedure provided for in this item.
The
expenditures of an insurance (reinsurance) organization on other activities,
which are treated as deductions, shall be determined in the total sum of
expenditures by means of proportional method, on the basis of specific weight
of incomes receivable (received) from other activities, in the total sum of
incomes of the insurance (reinsurance) organization, except for insurance
premiums paid back in the event that contracts of insurance (reinsurance) are
abrogated as well as insurance premiums paid under the reinsurance agreements.
Article 116.
Accounting of income and expenditures of insurance (reinsurance) organizations
For purposes
of taxation, insurance (reinsurance) organizations shall be required to
maintain separate accounting of income from the performance of insurance and
reinsurance activity, including activity involving the investment of insurance
premiums, and income and expenditures related to other activity not referred to
in item 1 of Article 115 of this Code.
Article 117.
Corporate income tax rates
1. An
insurance (reinsurance) organization shall pay the corporate income tax in the
form of fixed allocations based on insurance (reinsurance) agreements in the
following amounts:
1) for
non-savings insurance (reinsurance) - 4 percent of the insurance premiums
receivable (received);
2) for
savings insurance (reinsurance) except for annuity insurance - 2 percent of the
insurance premiums receivable (received);
3) for
annuity insurance - 1 percent of the insurance premiums receivable (received);
4) for mutual insurance - 1 percent of the insurance premiums
receivable (received);