Tax accounting policy is an important document in any company. If it is competently composed , it allows a taxpayer to avoid unnecessary claims on the part of the tax service , reduce the risk of tax disputes , as well as o minimize its cost of taxes.
Article 60 of the RoK Tax Code of the established requirements for tax accounting policy. Requirement for its mandatory availability for the taxpayer was introduced in order to reduce the tax reporting, giving companies the right to independently choose methods for the determination of objects related to taxation on the basis of IFRS and the provisions of the Tax Code.
In addition, the company must ensure that the tax ledger (tax forms) is available. They should be completed by the taxpayer and submitted to tax authorities only during the audit. Thus, the purpose of tax accounting policy is to reflect the specifics of tax accounting methods in cases where the tax law RK:
- contains provisions requiring or allowing to make a choice of several options (methods) provided for by the Tax Code, including in accordance with IFRS, and requires reflection of certain conditions and provisions in the tax accounting policy;
- establishes general rules and (or) does not contain specific methods of tax accounting, determination of tax objects and objects related to taxation and procedure for calculating taxes;
- establishes general rules and (or) does not contain specific methods of tax accounting , determination of tax objects and objects related to taxation, and procedure for calculating taxes;
contains provisions which do not comply with the fundamental principles of taxation established by the Tax Code in full.
For example, if a taxpayer is a subsoil user, which according to subparagraph 5) of paragraph of Article 60 of the Tax Code shall maintain separate tax records, the Tax Accounting Police shall include provisions determining direct income on the contractual and non – contractual activities, and general income. The similar requirements are applied to a subsoil user. At that, Tax Accounting Policy allows avoidance of double reflection of the same income and excludes double deduction of the same expenses.
The Tax Accounting Policy of the taxpayer should also include provisions on accounting of fixed assets.
In particular, pursuant to paragraph 9) of paragraph 1 of Article 60 of the Tax Code, the depreciation rate should be determined for each subgroup, a group of fixed assets. This is particularly important in cases where the absence of profit there is a need to carry forward losses and put a later date.
In connection with reduction of tax reporting forms, taxpayers have been entrusted with the obligation to decrypt all tax reporting lines when elaborating tax registers. At that, the forms of tax registers shall maximally be adapted to the accounting program of the company. This significantly reduces labor costs when filling them.
MinTax LLP is ready to offer its services on elaboration or improvement of both the Tax Accounting Policy and tax registers. Our specialists have extensive experience in tax matters, including tax administration, bookkeeping/accounting, in various industries, including trade, subsoil services.
Tax department of our company has studied all the issues associated with changes in tax legislation of Kazakhstan, as well as the practical application of that or those forms of the tax legislation , for which there is more than one interpretation . Tax accounting properly constructed helps the Company to use its potential more effectively, to maximize profits and minimize tax liabilities.