On the enactment of the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget" (Tax Code)

      Unofficial translation
      Footnote. throughout the text:
      the words "to a disabled person", "of disabled persons", "with/by a disabled child", "of a disabled child", "a disabled person" have been replaced by the words "to a person with a disability", "of persons with a disability", "with/by a person with a disability", "of a child with a disability", "a child with a disability", "a person with a disability", respectively;
      the words “degree I or II”, “group I, II or III” have been replaced by the words “of the first or second degree”, “of the first, second or third degree” respectively under Law of the Republic of Kazakhstan № 135-VII of 11.07.2022 (shall be enacted on 01.07.2022).

Article 1. To enact the Code of the Republic of Kazakhstan “On Taxes and Other Obligatory Payments to the Budget” (Tax Code) (hereinafter referred to as the Tax Code) on January 1, 2018, except for:

1) item four of part one of subparagraph 15) of part one of Article 24, which takes effect on July 1, 2018;

2) the titles of Articles 131, 133, Chapter 16, Articles 150 and 433, the Table of Contents, part two of subparagraph 4) of paragraph 2 of Article 19, paragraphs 9 and 10 of Article 22, subparagraph 6) of paragraph 9 of Article 48, subparagraph 6) of part one of paragraph 2 of Article 67, part three of paragraph 2 of Article 82, part two of paragraph 1 of Article 83, item four of paragraph 5 of Article 97, subparagraph 14) of paragraph 2 of Article 114, part three of paragraph 2 of Article 116, paragraph 2 of Article 121, paragraph 7 of Article 123, subparagraph 2) of paragraph 2 of Article 129, Articles 131, 133, Chapter 16, paragraph 6 of Article 145, Article 150, paragraph 4 of Article 152, subparagraph 2) of paragraph 2 of Article 190, item three of subparagraph 2) of paragraph 5 of Article 211, Article 433, item three of part seven of paragraph 2 of article 434, which come into force on January 1, 2019;

3) the title of Article 176 of the Table of Contents, subparagraphs 63) and 71) of paragraph 1 of Article 1, part two of Article 11, subparagraph 7) of paragraph 3 of Article 69, paragraph 6 of Article 140, subparagraph 15) of paragraph 1 of Article 142 , Article 176, paragraph 6 of Article 215, subparagraph 2) of paragraph 3 of Article 484, paragraph 2 of Article 678, item three of part two of paragraph 4 of Article 709, which come into force on January 1, 2020;

4) headings of Articles 23, 72 table of contents, subparagraph 8) of paragraph 1 and subparagraph 15) of paragraph 2 of Article 19, of Article 23, of item three of part one of subparagraph 13) and subparagraph 14) of part one of Article 24, paragraphs 13, 14, 15, 16, 17, 18 and 19 of Article 26, subparagraphs 15), 16) and 17) of paragraph 1 of Article 30, of paragraph 5 of Article 69, of Article 72 Article 72, subparagraph 6) of paragraph 1 of Article 73, paragraph 2 of Chapter 11, subparagraph 6) of paragraph 2 of Article 114, of paragraph 5 of Article 208, of paragraph 4, subparagraph 5) of paragraph 5 of Article 209, subparagraph 7) of paragraph 5 of Article 211, of paragraph 5 of Article 212, subparagraph 12) of paragraph 5 of Article 412, Articles 630 – 632, paragraphs 1 – 3, subparagraphs 1) – 4), 6) and 7) of paragraph 4, paragraphs 5 and 6 of Article 633, of paragraph 1, subparagraphs 1) – 3) of paragraph 2, paragraphs 3 – 5 of Article 634, of Article 635, which shall come into force from January 1, 2021;

5) headings of paragraph 2 of Chapter 11, Articles 636 – 643 table of contents, paragraph 2 of Chapter 11, of paragraph 6-1 of Article 215, subparagraph 5) of paragraph 4 of Article 633, subparagraph 4) of paragraph 2 of Article 634, Articles 636 – 643, which shall come into force from January 1 2025.

Footnote. Article 1 as amended by the laws of the Republic of Kazakhstan dated 02.04.2019 № 241-VI (shall be enforced from 01.01.2018); dated 03.07.2019 № 262-VI (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 10.12.2020 № 382-VI (shall come into force from 01.01.2021);

Article 2. To establish that:

1) subparagraph 7) of paragraph 4 of Article 69, subparagraph 3) of paragraph 1 of Article 82, paragraph 8 of Article 116, paragraph 8 of Article 121, subparagraph 7) of part one of paragraph 4 of Article 215, subparagraph 24) of paragraph 2 of Article 225, paragraph 8 of Article 250, part two of paragraph 1 of Article 298, subparagraph 34) of paragraph 5 of Article 372, subparagraph 14) of Article 394 of the Tax Code are valid until January 1, 2019;

2) part two of subparagraph 13) of part one of Article 24, item four of subparagraph 2) of paragraph 3 of Article 74, Clause 4 of Chapter 9, subparagraphs 7) and 9) of paragraph 1 of Article 88, item thirteen of subparagraph 1) of paragraph 1 of Article 189, paragraph 3 of Article 222, paragraph 9 of Article 228, paragraph 5 of Article 229, paragraphs 3 and 4, subparagraph 11) of paragraph 5 of Article 232, parts three and four of paragraph 1 of Article 233, part four of paragraph 1, paragraph 4 of Article 250, subparagraph 3) of paragraph 1 and paragraph 4 of Article 293, subparagraph 8) of paragraph 2 of Article 307, subparagraphs 32) and 33) of paragraph 5 of Article 372, subparagraph 4) of paragraph 2 of Article 510, subparagraph 11) of paragraph 3 of Article 521, Articles 539 and 540, Section 17, subparagraphs 13) and 14) of paragraph 9 of Article 645, subparagraphs 11) and 12) of Article 654 of the Tax Code are valid until January 1, 2020, and, on January 1, 2020 the headings of Clause 4 of Chapter 9, Articles 539 and 540, Section 17 shall be removed from the Table of Contents of the Tax Code;

3) paragraph 12 of Article 26, item thirteen of subparagraph 1) of paragraph 1 of Article 189, subparagraph 14) of paragraph 1 of Article 341, subparagraph 28) of paragraph 5 of Article 372 of the Tax Code shall be valid until January 1, 2021;

4) Articles 427 and 428 of the Tax Code shall be valid until January 1, 2025;

5) subparagraph 6) of paragraph 1 of Article 288, subparagraph 2) of paragraph 1 and paragraph 3 of Article 293, items seven and eight of part one and part two of paragraph 2 of Article 636, Chapter 77-1 of the Tax Code shall be valid until January 1, 2023;

6) subparagraphs 25) and 27) of paragraph 2 of Article 225, paragraph 2, subparagraph 9-1) paragraph 5 of Article 232, parts two, three and four of paragraph 1 of Article 241, part four of paragraph 1, paragraph 2 of Article 250, subparagraph 20) of Article 264, subparagraph 10) of paragraph 2 of Article 288, Article 292, paragraph 11 of Article 300, subparagraphs 15) and 16) of paragraph 2 of Article 307, subparagraphs 19), 20) and 42) of paragraph 2 of Article 319, subparagraph 41) of Article 394, subparagraphs 2) and 3) of paragraph 2 of Article 407, subparagraph 29) of Article 616 of the Tax Code shall be valid until January 1, 2027, by excluding from January 1, 2027 in the Table of Contents of the Tax Code the heading of Article 292.

Footnote. Article 2 as amended by Laws of the Republic of Kazakhstan № 156-VI as of 24.05.2018 (to be enacted from 01.01.2018); № 168-VІ as of 02.07.2018 (to be enacted ten calendar days after its first official publication); dated 10.12.2020 № 382-VI (shall come into force from 01.01.2021); dated 20.12.2021 № 85-VII (shall come into force from 01.12.2021); dated 12.12.2023 № 45-VIII (shall be enforced from 01.01.2024).

Article 3. To suspend:

1) until July 1, 2018 - subparagraph 37) of paragraph 1 of Article 1 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“37) oil treatment - a set of technological processes for the treatment of oil, including its gathering, delivery for treatment, inflow of borehole fluid into measuring units, degassing, dehydration, desalination, stabilization, demercaptanization;”;

2) until January 1, 2020, the effect of subparagraphs 60) and 73) of paragraph 1 of Article 1 of the Tax Code, establishing that during the period of suspension, these subparagraphs are valid in the following edition:

“60) electronic digital signature of a taxpayer - a sequence of electronic digital symbols created by means of an electronic digital signature and confirming the authenticity of an electronic document, its belonging to a taxpayer and invariability of its content;”;

“73) electronic taxpayer - a taxpayer interacting with tax authorities electronically on the basis of a tax application for registration as an electronic taxpayer in accordance with the procedure set forth in this Code;”;

3) until January 1, 2023, the effect of subparagraph 3) of paragraph 1 of Article 1 of the Tax Code, establishing that during the period of suspension this subparagraph is valid in the following edition:

"3) social payments - compulsory pension contributions, compulsory professional pension contributions paid in accordance with the legislation of the Republic of Kazakhstan on pension provision, social contributions paid in accordance with the Law of the Republic of Kazakhstan "On compulsory social insurance", deductions for compulsory social health insurance, paid in accordance with the Law of the Republic of Kazakhstan "On compulsory social health insurance";"

Footnote. Article 3 as amended by the Law of the Republic of Kazakhstan dated 26.12.2019 № 287-VІ (shall be enforced from 01.01.2020).

Article 4. To suspend until January 1, 2020, the effect of Article 3 of the Tax Code, establishing that during the period of suspension this article is valid in the following edition:

"Article 3. Effect of the tax legislation of the Republic of Kazakhstan

1. The tax legislation of the Republic of Kazakhstan is valid throughout the territory of the Republic of Kazakhstan and applies to individuals, legal entities and their structural units.

2. Legislative acts of the Republic of Kazakhstan making changes and additions to this Code, with the exception of changes and additions on tax administration, the specifics of establishing tax reporting, improving the situation of taxpayers (tax agents), as well as when changing the administrative-territorial structure of the Republic of Kazakhstan, may be adopted not later than December 1 of the current year and entered into force not earlier than January 1 of the year following the year of their adoption. "

Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 27.12.2019 № 291-VІ (shall be enforced from 01.01.2019).

Article 5. To suspend, until January 1, 2019, part two of subparagraph 3) of paragraph 1 of Article 19 of the Tax Code, and to establish that during the period of suspension this part shall read as follows:

“The exception set forth in part one of this subparagraph does not apply to the tax authorities’ requirements specified in the course of a tax audit in respect of income and expenses;”.

Article 5-1. To suspend until January 1, 2025 the validity of subparagraph 23) of Article 24 of the Tax Code, having established that during the period of suspension, this subparagraph shall be valid as follows:

1) from January 1 2022 to January 1, 2023:

"23) when identifying operations that have signs of receiving income from entrepreneurial activities according to certain criteria established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan, to provide information on the following individuals:

persons holding responsible public office and their spouses;

persons authorized to perform public functions and their spouses;

persons equated to persons authorized to perform public functions, and their spouses;

persons who are obliged to submit a declaration in accordance with the Constitutional Law of the Republic of Kazakhstan "On Elections in the Republic of Kazakhstan" and the laws of the Republic of Kazakhstan "On combating corruption", "On Banks and Banking Activities in the Republic of Kazakhstan", "On insurance activities", "On securities market".

The criteria for classifying operations carried out on bank accounts of individuals as transactions that have signs of receiving income from entrepreneurial activities, the procedure, form and terms for submitting information shall be established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.";

2) from January 1, 2023 to January 1, 2024:

persons holding responsible public office and their spouses;

persons authorized to perform public functions and their spouses;

persons equated to persons authorized to perform public functions, and their spouses;

persons who are obliged to submit a declaration in accordance with the Constitutional Law of the Republic of Kazakhstan "On Elections in the Republic of Kazakhstan" and законами of the Republic of Kazakhstan "On combating corruption", "On Banks and Banking Activities in the Republic of Kazakhstan", "On insurance activities", "On securities market";

employees of state institutions and their spouses, as well as employees of subjects of the quasi-public sector and their spouses, with the exception of persons specified in subparagraph 1) of part one of this article.

The criteria for classifying transactions carried out on bank accounts of individuals as transactions that have signs of receiving income from entrepreneurial activities, the procedure, form and terms for submitting information shall be established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.";

3) from January 1, 2024 to January 1, 2025:

"23) when identifying transactions that have signs of receiving income from entrepreneurial activities according to certain criteria established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan, to provide information on the following individuals:

persons holding responsible public office and their spouses;

persons authorized to perform public functions and their spouses;

persons equated to persons authorized to perform public functions, and their spouses;

persons who are obliged to submit a declaration in accordance with the Constitutional Law of the Republic of Kazakhstan "On Elections in the Republic of Kazakhstan" and законами of the Republic of Kazakhstan ""On combating corruption", "On Banks and Banking Activities in the Republic of Kazakhstan", "On insurance activities", "On securities market"";

heads, founders (participants) of legal entities and their spouses, individual entrepreneurs and their spouses, with the exception of persons specified in subparagraphs 1) and 2) of part one of this article.

Footnote. The Law was amended with Article 5-1, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 № 85-VII (shall come into force from 01.01.2022).

Article 6. To suspend, until January 1, 2019, subparagraph 11) of paragraph 3 of Article 30 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“11) the National Bank of the Republic of Kazakhstan with regard to information necessary to control the satisfaction of the requirement to repatriation of the national and foreign currency and its transfer to authorized banks that are currency control agents.

The procedure for submitting information constituting a tax secret is determined by rules for the execution of export-import currency control in the Republic of Kazakhstan and residents’ obtainment of account numbers of export and import contracts approved by the National Bank of the Republic of Kazakhstan in coordination with the authorized body;”.

Article 6-1. To suspend from January 1, 2018 to January 1, 2020, the effect of article 41 of the Tax Code, establishing that during the period of suspension, this article is valid in the following edition:

"Article 41. Specifics of the fulfillment of the tax obligation when transferring property to trust management by state institutions and certain categories of legal entities

1. When state institutions transfer property into trust management, the tax obligations on property tax, land tax and vehicle tax are subject to fulfillment by the trustee, unless otherwise provided for by the contract of trust management of property (the act on the establishment of trust management of property) or paragraph 2 of this article.

2. The tax obligation on taxes specified in paragraph 1 of this article, and payment for the use of a land plot for trust management activities, may be fulfilled by a trustee if the following conditions are simultaneously met:

1) the founder of the trust management is:

a national management holding or

a national company or

a legal entity, fifty or more percent of the voting shares of which belong to a national management holding or a national company,

a legal entity, fifty or more percent of the shares in the authorized capital of which belong to a national management holding or a national company;

2) the property received in trust management is subject to accounting by the trustee as part of fixed assets, investments in real estate in accordance with the international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.

3. The trustee fulfills tax obligations, unless otherwise provided for by the contract of trust management of property (the act on the establishment of trust management of property), for the calculation and payment of taxes, preparation and submission of tax reports from the date of:

the state registration of the right of trust management - if, in accordance with the legislation of the Republic of Kazakhstan, a state registration of such a right is required;

conclusion of an agreement on trust management of property (the act on the establishment of trust management of property) - if, in accordance with the legislation of the Republic of Kazakhstan, a state registration of the right of trust management is not required.

4. Trustee:fulfills tax obligations, unless otherwise established by the contract of trust management of property (the act on the establishment of trust management of property), for the calculation and payment of taxes, preparation and submission of tax reports on his own behalf, at rates and in the manner established by the Special part of this Code for persons, that include such a trustee;

is obliged to keep separate records in accordance with Article 194 of this Code in order to fulfill the tax obligation when transferring property to trust management.

5. If, when state institutions transfer property into trust management, the property of a state institution is not accounted by the trustee as part of fixed assets, investments in real estate in accordance with the international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, then the act of acceptance and transfer of such property must reflect the book value of such property as of the date of its preparation."

Footnote. The Law was supplemented with Article 6-1 in accordance with the Law of the Republic of Kazakhstan dated 02.04.2019 № 241-VI (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

Article 7. To suspend, until January 1, 2020, Article 48 of the Tax Code, and to establish that during the period of suspension this article shall read as follows:

“Article 48. Limitation period for a tax obligation and claim

1. The limitation period for a tax obligation and claim is the period of time during which:

1) a tax authority has the right to calculate, assess or revise the calculated, assessed amount of taxes and payments to the budget;

2) a taxpayer (tax agent) is obliged to file tax returns, has the right to introduce alterations and additions to tax returns, to revoke tax returns;

3) a taxpayer (tax agent) has the right to require the offset and (or) refund of taxes and payments to the budget, penalties.

2. Unless otherwise provided for by this article, the limitation period is five years. The running of the limitation period begins after the end of a relevant taxable period, except for the cases provided for by paragraphs 4, 5, 6 and 10 of this article.

3. A taxpayer, a tax authority have the right to calculate, assess or revise the calculated, assessed amount of taxes:

1) when applying Chapter 80 of this Code to taxes specified in an investment contract providing for the implementation of a priority investment project, during the validity period of such a contract and five years from the date of expiration or other termination of an investment contract;

2) when applying subparagraph 4) of paragraph 1 of Article 288 of this Code - during the period of training of an individual and five years from the date of completion of training of an individual.

4. With regard to taxpayers carrying out activities in accordance with a subsoil use contract, a tax authority is entitled to assess or revise the calculated, assessed amount of a tax on excess profits, on shares of the Republic of Kazakhstan in production sharing, taxes and payments to the budget, the calculation methodology of which uses one of the following indicators: internal rate of return (IRR) or internal revenue rate or R-factor (index of profitability) - during the validity term of a subsoil use contract and five years after the termination of a subsoil use contract.

5. The running of the limitation period begins in the cases of:

1) application of paragraph 1 of Article 432 of this Code to a tax obligation and claim for the return of excess amount of VAT for the period of construction of buildings and industrial facilities - at the end of a taxable period, during which such buildings and facilities were first put into operation in the territory of the Republic of Kazakhstan;

2) application of paragraph 2 of Article 432 of this Code to a tax obligation and claim for the return of excess amount of VAT for the period of geological exploration and development of a deposit - at the end of a taxable period, during which the export of minerals extracted under a relevant contract for subsoil use, except for common minerals, groundwater and therapeutic mud, began.

If the export took place before January 1, 2016, the limitation period begins on January 1, 2016;

3) refund and (or) offset, in accordance with Article 104 of this Code, of the confirmed excess amount of VAT specified in Article 432 of this Code - at the end of a taxable period, during which the reliability of excess amount of VAT was confirmed, also pursuant to an appeal against results of a tax audit in accordance with the legislation of the Republic of Kazakhstan.

6. For the purposes of calculating or revising the calculated, assessed amount of VAT specified in subparagraphs 1) and 2) of paragraph 5 of this article, the limitation period begins at the end of a taxable period, during which the taxpayer submits a VAT declaration with a claim to return the excess amount of VAT.

7. The limitation period shall be extended:

1) for one calendar year - in the case of filing by a taxpayer (tax agent) of additional tax returns for the period, for which the limitation period, set forth in paragraph 2 of this article, expires in less than one calendar year, with regard to the assessment and (or) revision of the calculated amount of taxes and payments to the budget;

2) for three calendar years - in case a taxpayer files additional tax returns with alterations and additions regarding the transfer of losses for the period, for which the period of limitation of actions set forth in paragraph 2 of this article, expires in less than one calendar year, with regard to the assessment and (or) revision of the calculated amount of corporate income tax to the budget;

3) before the execution of a decision made subsequent to the results of consideration of a complaint (application), in cases of:

appeal of a taxpayer (tax agent) against an audit findings report in accordance with the procedure established by the legislation of the Republic of Kazakhstan, as well as actions (inaction) of officials of tax authorities – with regard to the part under appeal;

consideration of a tax application of a non-resident for the return of income tax from the budget under an international treaty;

appeal by a non-resident, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, against the decision of a tax authority made subsequent to the results of consideration of a tax application for the return of income tax from the budget under an international treaty;

appeal by a non-resident against the decision of the authorized body made subsequent to the results of consideration of a non-resident’s complaint specified in item four of this subparagraph;

4) before the execution of a decision of the authorized body and (or) competent authority of a foreign state adopted following the results of a coordination procedure – if the authorized body conducts the coordination procedure in accordance with Article 221 of this Code;

5) prior to the execution of the notification on elimination of violations revealed by the tax authorities based on the results of an in-house audit, sent and delivered before the expiration of the statute of limitations on the issue specified in such notification;

6) from the day of delivering recommendations on the results of horizontal monitoring until a decision on the results of horizontal monitoring is made;

7) if an investor initiated proceedings in international arbitration tribunal, a tax authority has the right to assess or revise the calculated, assessed amount of taxes and payments to the budget of the taxpayer, over which the investor initiated proceedings, for the period running from the beginning of that the investor complains of and until a final and binding court judgment is delivered on such arbitration proceedings - within five years after the completion of such arbitration proceedings.

8. The limitation period for calculating or revising the calculated, assessed amount of taxes and payments to the budget is suspended for the period:

1) of preparing and submitting a written objection by a taxpayer (tax agent) to the preliminary act of a tax audit and its consideration by a tax authority in accordance with the procedure established by the legislation of the Republic of Kazakhstan;

2) of sending requests and receiving documents and (or) information on them during a tax audit in accordance with the legislation of the Republic of Kazakhstan on transfer pricing.

In such cases, the general limitation period for the revision of the calculated, assessed amount of taxes and payments to the budget, taking into account its suspension, may not exceed seven years;

3) of time from the date of completion of a tax audit until completion of criminal proceedings, in case a tax audit is conducted as part of pre-trial investigation.

9. The assessed amount of taxes and payments to the budget for the action (actions) of issuing an invoice with regard to a private business entity without actual shipment of goods, performance of works, provision of services, is calculated or revised by a tax authority for a tax obligation and (or) a demand pursuant to a final and binding court judgment, a sentence, or a court decision within the limitation period.

10. The amount of a tax and a payment to the budget, penalties paid in excess (erroneously) is subject to offset and (or) return within the amounts paid during a current year and previous five calendar years, except for the case specified in Article 108 of this Code.

Footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 02.04.2019 № 241-VI (shall be enforced from 01.01.2020).

Article 7-1. Despite the provisions of parts one and two of paragraph 2 of Article 82 of the Tax Code, to establish that in the period from January 1, 2023, to May 1, 2023, there is no obligation to submit a tax application for registration of value added tax for taxpayers who submitted for the transition for a special tax regime of retail tax, a notice of the applicable tax regime in connection with the implementation exclusively of one or more of the following activities in the field of public catering:

№	CCEA	Activities
1.	55.10.1*	Provision of services by hotels with restaurants, except for hotels located on the roadside
2.	55.10.3*	Providing hotel services with restaurants for official events
3.	56.10.1	The activities of restaurants and the provision of food delivery services, except for the activities of facilities located on the roadside
4.	56.10.2	Activities of restaurants and provision of food delivery services by objects located on the roadside
5.	56.21.0	Delivery of ready food to order and other catering activities
6.	56.29.1	Other types of catering outside populated areas
7.	56.29.2	Other types of catering on passenger trains
8.	56.29.9	Other food provision activities not elsewhere classified

*except for the provision of services by hotels (hotel services).

Footnote. The law is supplemented by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated 20.03.2023 № 213-VII (shall come into effect from 01.01.2023).

Article 7-2. Despite the provisions of part three of paragraph 1 of Article 85 of the Tax Code, to establish that in the period from January 1, 2023, to May 1, 2023, taxpayers applying the provisions of part two of paragraph 8-1 of Article 679 of the Tax Code, a tax application for registration of tax on the added value shall be presented on the day of submission of the notice of the applied taxation regime specified in Article 57-16 of this Law.

Footnote. The law is supplemented by Article 7-2 in accordance with the Law of the Republic of Kazakhstan dated 03/20/2023 № 213-VII (shall come into effect from 01.01.2023).

Article 8. To suspend, until January 1, 2019, paragraphs 1 and 2 of Article 104 of the Tax Code, and to establish that during the period of suspension these paragraphs shall read as follows:

“1. An excess VAT amount is refunded at a VAT payer’s request for the return of the excess VAT amount specified in VAT declaration in accordance with Articles 431, 432 and 434 of this Code pursuant to a submitted tax application by conducting an offset provided for by Article 102 of this Code and (or) transferring it to the taxpayer’s bank account.

2. An excess VAT amount subject to refund in accordance with Articles 429, 431, 432 and 434 of this Code shall not exceed excess VAT amount available in a VAT personal account as of the date of drawing up a payment document on excess VAT refund by a tax authority.”.

Article 9. To suspend, until January 1, 2019, subparagraph 7) of paragraph 2 of Article 114 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“7) of tax debts’ payment - within five business days from the tax debts’ emergence;”.

Article 10. To suspend, until January 1, 2020, item three of subparagraph 2) of part two of paragraph 1 of Article 115 of the Tax Code, and to establish that during the period of suspension this part shall read as follows:

“This method applies to a taxpayer registered as an electronic taxpayer in accordance with the procedure set forth in Article 86 of this Code;”.

Article 11. To suspend, until January 1, 2019, part two of paragraph 2 and paragraph 5 of Article 116 of the Tax Code, and to establish that during the period of suspension these provisions shall read as follows:

“Before applying methods for securing the fulfillment of the overdue tax obligation specified in subparagraphs 2), 3) and 4) of part one of paragraph 1 of this article, a notice of the payment of tax debts, specified in subparagraph 7) of paragraph 2 of Article 114 of this Code, shall be sent to a taxpayer (tax agent), except for cases specified in paragraph 3 of this article.”;

“5. In case of an appeal against an audit findings report, the application of methods for securing the fulfillment of an overdue tax obligation, except for the method specified in subparagraph 4) of part one of paragraph 1 of this article, shall be suspended pending a decision on the results of the complaint’s consideration.”.

Article 12. To suspend, until January 1, 2019, subparagraph 3) of paragraph 1 of Article 118 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“3) failure to pay tax debts - upon expiration of ten business days from the delivery of the notice provided for in subparagraph 7) of paragraph 2 of Article 114 of this Code;”.

Article 13. To suspend, until January 1, 2019, part one of paragraph 1 of Article 119 of the Tax Code, and to establish that during the period of suspension this part shall read as follows:

“1. In case of failure to pay tax arrears within ten business days from the receipt of a notice of the payment of tax debts, a tax authority, to secure the payment of tax debts, shall suspend debit transactions with the cash of a taxpayer (tax agent) that is a legal entity, a structural unit of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual entrepreneur, a private practice owner.”.

Article 14. To suspend:

1) until January 1, 2019, subparagraph 1) and item three of part two of subparagraph 2) of paragraph 1 of Article 120 of the Tax Code, and to establish that during the period of suspension these provisions shall read as follows:

“1) failure to pay tax debts upon expiration of fifteen business days from the receipt of a notice of the payment of tax debts;”;

“from the removal of a taxpayer (tax agent) from the list of taxpayers, of large taxpayers subject to monitoring.”.

2) until January 1, 2020, subparagraph 2) of paragraph 5 of Article 120 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“2) electronically - on the date of delivery of the tax authority’s decision to the web application. This method applies to a taxpayer registered as an electronic taxpayer in accordance with the procedure set forth in Article 86 of this Code;”.

Article 15. To suspend, until January 1, 2019, part one of paragraph 1 of Article 121 of the Tax Code, and to establish that during the period of suspension this part shall read as follows:

“1. Tax authorities take actions on enforced collection of tax debts of a taxpayer that is a legal entity, a structural unit of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual entrepreneur, a private practice owner, except for cases of an appeal against an audit findings report, a higher-level tax authority’s decision issued after consideration of a complaint about the report.”.

Article 16. To suspend, until January 1, 2019, part one of paragraph 1 of Article 122 of the Tax Code, and to establish that during the period of suspension this part shall read as follows:

“1. In cases of non-payment or incomplete payment of tax debts after the expiration of twenty business days from the delivery of a notice of the payment of tax debts, a tax authority takes actions of enforced collection of the amount of tax debts from bank accounts of a taxpayer that is a legal entity, a structural unit of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual entrepreneur, a private practice owner.”.

Article 17. To suspend, until January 1, 2019, paragraph 1 of Article 123 of the Tax Code, and to establish that during the period of suspension this paragraph shall read as follows:

“1. If a taxpayer (tax agent) that is a legal entity, a structural unit of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual entrepreneur, a private practice owner has no or insufficient money in bank accounts or has no bank accounts, a tax authority forecloses on money in bank accounts of third parties indebted to the taxpayer (tax agent) (hereinafter referred to as debtors) up to the amount of his/her/its current tax debts.”.

Article 18. To suspend, until January 1, 2019, paragraph 1 of Article 124 of the Tax Code, and to establish that during the period of suspension this paragraph shall read as follows:

“1. If there is no or insufficient money in bank accounts of a taxpayer specified in paragraph 1 of Article 121 of this Code, or in bank accounts of his/her/its debtors or if a taxpayer or his/her/its debtors have no bank accounts, a tax authority, without the taxpayer’s consent, shall issue an order for foreclosure on the taxpayer’s restricted property.

The order for foreclosure on the taxpayer’s restricted property is issued in the form approved by the authorized body in two copies, one of which is sent to an authorized legal entity together with a copy of a decision to impose restrictions on the disposal of property and a copy of an inventory report.”.

Article 19. To suspend, until January 1, 2019, Chapter 17 of the Tax Code, and to establish that during the period of suspension this Chapter shall read as follows:

“Chapter 17. Risk Management System

Article 136. General provisions

1. A risk management system is based on risk assessment and includes measures developed and/or applied by tax authorities in order to identify and prevent risks. Based on the results of risk assessment, differentiated forms of tax control are implemented.

2. A risk is probability of non-fulfillment and (or) incomplete fulfillment of the tax obligation by a taxpayer (tax agent), which could and (or) may cause damage to the state.

3. Tax authorities apply the risk management system pursuing the goal of:

1) focusing on areas of increased risk and ensuring more efficient use of available resources;

2) increasing opportunities for identification of violations in the field of taxation.

4. The risk management system is used in the implementation of tax control, also in order to:

1) select taxpayers (tax agents) for conducting tax audits;

2) confirm the reliability of excess VAT amounts;

3) determine the degree of risk of a violation identified pursuant to the results of an in-house audit;

4) determine the right to a simplified procedure for the refund of excess VAT amount with account of the provisions of Article 434 of this Code.

5. The risk management system can be implemented using information systems.

Article 137. Criteria for the degree of risk

Tax authorities analyze the data of tax returns filed by a taxpayer (tax agent), information received from authorized state bodies, as well as other documents and (or) information on the activities of the taxpayer (tax agent).

The results of such analysis are used by tax authorities to achieve the goals specified in Article 136 of this Code.

Criteria for the degree of risks used for the purposes specified in subparagraphs 1) and 3) of paragraph 4 of Article 136 of this Code are confidential (insider) information, except for the criteria approved by the authorized body jointly with the authorized body on entrepreneurship.

Criteria for the degree of risk and the procedure for the application of the risk management system in order to confirm the reliability of excess VAT amounts are determined by the authorized body.”.

Article 20. To suspend, until January 1, 2020, subparagraph 17) of paragraph 1 of Article 142 of the Tax Code, and to establish that during the period of suspension this subparagraph shall read as follows:

“17) the existence and authenticity of excise and inventory-control stamps, accompanying notes for alcohol products, oil products and biofuels, tobacco products, the availability of a license;”.

Article 21. To suspend, until January 1, 2019, paragraph 7 of Article 146 of the Tax Code, and to establish that during the period of suspension this paragraph shall read as follows:

“7. Time limits for conducting, extending and suspending thematic audits to confirm the reliability of excess VAT amounts claimed for refund shall be established within time frames specified in Article 431 of this Code.”.

Article 22. To suspend until January 1, 2020, the effect of Article 166 of the Tax Code, establishing that during the period of suspension this article is valid in the following edition:

1) from January 1, 2018 until January 1, 2019:

“Article 166. General provisions

1. It is mandatory to use cash registers for monetary transactions in the territory of the Republic of Kazakhstan, unless otherwise provided for by this article.

2. The provisions of paragraph 1 of this article do not apply to monetary transactions:

1) of individuals;

2) of lawyers and mediators;

3) of individual entrepreneurs (except for those selling excisable goods) that carry out their activities:

applying a patent-based special tax regime;

under a special tax regime for small business entities through non-stationary trade facilities in the territory of outdoor markets;

under a special tax regime based on the payment of a uniform land tax on activities covered by this special tax regime;

4) in respect of services to the population for public urban transportation involving the issuance of tickets in the form approved by the authorized state body implementing the state policy in the field of transport, in coordination with the authorized body;

5) of the National Bank of the Republic of Kazakhstan;

6) of second-tier banks.

3. Tax authorities’ registration of cash registers used by taxpayers includes:

1) the registration of a cash register;

2) update of registration data;

3) deregistration of a cash register.

4. Vending machines and self-service payment terminals performing monetary transactions in trade operations or providing services for cash shall be equipped with cash-registers.

5. The obligation to use cash registers with a function of data recording and (or) transfer in monetary transactions extends to taxpayers engaged in wholesale and (or) retail sales of gasoline (except for aviation fuel), diesel fuel, alcohol products, types of activities established by the authorized body.

The provisions of this paragraph shall not apply to taxpayers operating in places without a public telecommunications network.

Information on administrative and territorial units of the Republic of Kazakhstan without public telecommunications networks is subject to placement on the website of the authorized body.

6. Following requirements are set for the use of cash registers:

1) a cash register shall be registered with a tax authority before the commencement of an activity involving monetary transactions;

2) a cash register receipt or a sales receipt shall be issued for an amount paid for a product, work or service;

3) tax officials shall be provided access to a cash register.

7. A cash register receipt shall contain the following information:

1) the name of a taxpayer;

2) taxpayer identification number;

3) the serial number of a cash register;

4) registration number of a cash register with a tax authority;

5) receipt number;

6) the date and time goods were purchased, works performed, services rendered;

7) the price of a commodity, work, service and (or) the purchase amount;

8) a fiscal sign;

9) the name of a fiscal data operator and the details of the website of the fiscal data operator to verify the authenticity of a receipt issued by cash registers with the function of data recording and (or) transfer.

The form and contents of a receipt of hardware-software complexes used by banks and organizations carrying out certain types of banking operations are established by the National Bank of the Republic of Kazakhstan in coordination with the authorized body.

A cash register receipt used in currency exchange offices, reception points of metal scrap, glassware, pawnshops, must contain additional information on the amounts of sale and purchase.

8. A cash register receipt may contain additional data provided for by technical documents of a cash register’s manufacturer, including VAT amount.

9. The procedure for the use of cash registers is determined by the authorized body.”;

2) from January 1, 2019 until January 1, 2020:

“Article 166. General provisions

1. It is mandatory to use cash registers for monetary transactions in the territory of the Republic of Kazakhstan, unless otherwise provided for by this article.

2. The provisions of paragraph 1 of this article do not apply to monetary transactions:

1) of individuals;

2) of lawyers and mediators; 3)

3) of individual entrepreneurs (except for those selling excisable goods) that carry out their activities:

applying a patent-based special tax regime;

under a special tax regime based on the payment of a uniform land tax on activities covered by this special tax regime;

4)in respect of services to the population for public urban transportation involving the issuance of tickets in the form approved by the authorized state body implementing the state policy in the field of transport, in coordination with the authorized body;