Changes to the Tax Code of the Republic of Kazakhstan
On 13 December 2023 a number of amendments was introduced to the Code of the Republic of Kazakhstan dated 25 December, 2017 No. 120-VI 'On taxes and other obligatory payments to the budget (Tax Code)' (the 'Tax Code')1. Below you may find the most significant of these amendments. Most of them with certain exceptions came into effect on 1 January, 2024.
1. AMENDMENTS TO THE TAXPAYER'S OBLIGATIONS (ARTICLE 13 (5) OF THE TAX CODE).
Taxpayer's obligation to keep certain records in respect of the cash transactions as well as refunds/cancellations for 5 years will not be applied to the taxpayers using cash registers with the data fixation and/or transmission function(s).
2. AMENDMENTS TO THE TAX OBLIGATIONS DEADLINES (ARTICLE 51- 2 OF THE TAX CODE).
Payment of the state fee for filing a claim to the court may be postponed for one year, if it is not affordable for a legal entity (excluding large business) or an individual to pay such fee at the moment of the claim filing due to the special circumstances (such as damage caused by the natural disasters, the untimely salary payment etc.), however there are grounds to believe that the legal entity/the individual will pay such fee later within a year.
3. AMENDMENTS TO THE TAX CONTROL (ARTICLE 70 (5) OF THE TAX CODE).
Taxpayer is no longer obliged to provide the tax authorities with the notarised copies of the documents confirming the taxpayer's location upon explanation of the taxpayer's absence during its tax control. Now it is sufficient to provide ordinary copies of the documents along with their original versions for the tax authorities verification.
4. AMENDMENTS TO THE IN-HOUSE TAX AUDIT (ARTICLE 96 (2 (2), 2-1, 4 AND 6) AND ARTICLE 118 (1 (7)) OF THE TAX CODE)2.
- Upon reply to the notification on elimination of violations with average risk level revealed by the tax authorities upon the in-house tax audit, extracts from the registers of tax/accounting records, documents confirming the tax reporting data as well as other documents are provided at taxpayer's discretion.
- No decision is issued in case the tax authorities recognise the notification on elimination of violations with average risk level revealed by the tax authorities upon the in-house tax audit as unexecuted.
- The tax authorities are not allowed to request the documents which are unrelated to those specified in the notification on elimination of violations revealed by the tax authorities upon the inhouse tax audit.
- Taxpayer's bank accounts are seized due to non-execution of the notification on elimination of violations revealed by the tax authorities upon the in-house tax audit after 1 business day from the deadline for execution of such notification.
- Taxpayer's bank accounts cannot be seized on the ground that the tax authorities recognised the notification on elimination of violations revealed by the tax authorities upon the in-house tax audit as unexecuted.
5. AMENDMENTS TO CORPORATE INCOME TAX (ARTICLE 241 (2 (4)), ARTICLE 257 (2), ARTICLE 264 (1-1) AND ARTICLE 288 (2 (3-4)) OF THE TAX CODE).
- Dividends in respect of securities listed on KASE and AIX 3 may be excluded from the aggregate annual income. It is no longer needed to satisfy the active trading condition in respect of the listed securities in order to apply the abovementioned exemption. 4
- Expenses on purchase or receipt of digital assets sold outside the AIFC digital asset exchange can now be deducted upon taxable income calculation5.
- Employers are allowed to deduct professional payments made for employees engaged in hazardous working conditions irrespective of the fact that these payments are not recognised as employees income.
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Footnote
1. Law of the Republic of Kazakhstan dated December 12, 2023 No. 45-VIII 'On amendments to the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code) and the Law of the Republic of Kazakhstan "On the enactment of the Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the budget" (Tax Code)'.
2. Comes into effect on February 12, 2024.
3. At present there is no corresponding amendment to the relevant AIFC act.
4. Came into force on January 1, 2023.
5. Came into force on January 1, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
