Dear taxpayers of the RoK!
In connection with frequent appeals regarding amendments made to the RoK Code “On taxes and other mandatory payments” (Tax Code) regarding the statute of limitations, Roman Bykov, Senior consultant of MinTax LLP, comments on this issue in his article.
According to the new version of paragraph 2 of Article 48 of the Tax Code effective from January 1, 2020, the limitation period is 3 (three) years, with the exception of the category of taxpayers subject to tax monitoring and carrying out activities in accordance with a subsurface contract, for whom it is 5 (five) years, taking into account the special features provided for by the Tax Code.
However, earlier the Letter #KGD-02-47993-KGD-580 dated 11 January 2020 (the Letter) of the State Revenue Committee of the RoK Ministry of Finance (SRC RK) clarified that the effect of a normative legal act does not apply to relations that arose before its entry into force (paragraph 1 of Article 43 of the RoK Law “On Legal Acts”).
That is, as specified in the Letter, with respect to tax obligations arising before 1 January 2020, the limitation period comprises 5 (five) years; therefore, the state revenue authorities, during inspections performed in 2020, are entitled to assess, charge or revise the assessed, charged amount of taxes and payments to the budget for tax periods within a five-year period, subject to the provisions of Article 48 of the Tax Code governing the extension and/or suspension of the limitation period.
However, a statement was published on 13 February 2020 on the SRC RK official web site kgd.gov.kz to inform that due to the ambiguity and differences in understanding the application of provisions of Article 48 of the Tax Code, and in order to avoid multiple interpretations and contradictions in the practice of applying the rule providing for a three-year limitation period, appropriate amendments were initiated to be made in the draft Law of the RoK “On Amendments and Additions to Certain Legislative Acts of the RoK on taxation and improvement of the investment climate”.
Taking into account the position of the authorized body for tax policy, until the enactment of the amendment to the RoK Law “On putting into effect the RoK Code “On Taxes and Other Obligatory Payments”, starting from 1 January 2020, with respect to tax liabilities and claims, the three-years’ limitation period should be applied, subject to exceptions and special features provided for by Article 48 of the Tax code.
 Republic of Kazakhstan.