Law No. 203-Vof the RoK dated 16 May 2014 introduced the amendments into the Tax Code and several other legislative acts of the RoK for the authorization system which are effective upon expiration of six months after the first official publication, and some provisions are effective from 1 January 2013 and 2014, IA “Zakon.kz” informs.

Let’s consider the effective amendments.

The definition of the related parties is clarified in par. 1-1 of Article 12 of the Tax Code. This amendment shall be efective up to 1 January 2017.

Further amendments are made in par.   2 of Article 90 of the Tax Code. The clarifications are introduced as to when income is not recognized from decrease in provisions created by the taxpayer with deductible provision expenses, the provisions prior carried for deductions in case of decrease in amounts due from the payer.

The wording of Article91  of the Tax Code on the definition of income from claim assignment has changed.

The amendments are introduced into Articles 90 and 91 of the Tax Code effective from 1 January 2014 to 1 January 2018.

According to the amendments introduced into Article 99  of the Tax Code, when adjusting the aggregate annual income, the aggregate annual income excludes a legal entity’s income determined by the Government of the Republic of Kazakhstan, income from claim assignment received from the bank – national development institute owned by the national management holding, right for the loans (borrowings). This provision applies from 1 January 2014 to 1 January 2016 in case of availability of the decision of the bank’s management body – national development institute owned by the national management holding on assignment of claim for a loan (borrowing).

Article 103 of the Tax Code is amended by par. 1-1 effective from 1 January 2013 regarding the interest amount subject to deduction in the form of the payments under the liabilities of an entity entitled to create the provisions.

Subparagraphs 10 and 13 of Article 581 are amended in terms of the a bank’s obligation on notification of the tax authorities on the amount of termination obligation on loans (borrowings) issued to a borrower and refusal to open the bank accounts for the dormant taxpayers and taxpayers with collection orders or orders for suspension of the cash disbursement transactions for bank accounts. This provision is effective from 1 January 2014.