MinTax Group has prepared these comments to certain amendments introduced by the RoK1 Law dated 5 December 2013 No. 152-V of the RoK Code “On Taxes and Other Obligatory Payments to the Budget” (the Tax Code) dated 10 December 2008 No. 99-IV.
We kindly propose you to view amendments introduced to the Tax Code, as of 1 January 2014 which, we believe, are the most significant and of present interest.
Article 3 “Effect of the RoK Tax Laws”.
Due to the fact that the amendments to the Tax Code adopted later than 1 November, to avoid inconsistency of the date of adoption of amendments with requirements of Article 3 of the Tax Code, it is established that legislative acts amending the Tax Code can now be taken no later than 1 December of the current year and put into effect not earlier than 1 January of the year following the year of adoption.
Previously, amendments to the Tax Code, except for those that improve the position of the taxpayer relating to tax administration and tax reporting features had to be adopted not later than 1 November of the current year and were put into effect not earlier than 1 January of the year following the year of their adoption. Effective and backdated from 1 January 2013.
Please note that, provisions of this Article are important in cases where amendments entered and backdated lead to worsening of the taxpayer’s conditions, because they increase its tax liabilities and lead to additional assessment of taxes, penalties and (or) fines to be paid to the budget.
Article 46 “Statute of limitations on tax liabilities and demand” Considering that, in accordance with the Tax Code, enterprise losses can be carried forward to the next ten years, paragraph 5 of Article 46 of the Tax Code was additionally introduced a paragraph to extend the statute of limitations for three calendar years in terms of calculation and (or) the revision of the calculated amount of CIT2 to the budget, in case the taxpayer submits additional tax reporting with amendments to the transfer of the losses, if the statute of limitations expires in less than one calendar year.
For example, if the taxpayer in 2014 introduces amendments to tax reporting in 2009 in terms of carry forward of losses, tax authorities will be entitled to accrue and (or) to revise the calculated amount of CIT in 2009 during the 2015 – 2017 period.
Effective from 1 January 2014.
Article 63 of the “General Provisions” § 1 “Tax Reporting”
According to amendments introduced, the tax reporting shall be drawn up in accordance with the format and logical control requirements approved by the authority.
It will be entered into force on 1 January 2015.
Tax reporting forms and rules of their compilation will be approved by the authorized body, i.e., the Ministry of Finance. It was entered into force on 1 December 2013.
Law dated 26 December 2012 No. 61 -V provides for an exception of “initial” reporting from the tax reporting forms, starting from 1 January. The RoK Law dated 5 December 2013 No. 152 –V has canceled this exception, since, during the introduction of universal declaration one should clearly delineate when the taxpayer shall submit the initial tax return, and when the regular.
Effective from 1 January 1 2014.
Article 68: “Procedure of submitting of Tax reporting”
Amendments to paragraph 5 of Article 68 of the Tax Code, with respect to placement on the official website of the authorized body of requirements of format and logical control for the preparation of tax reporting provide for appropriate rescheduling of placement of information under paragraph 5 of Article 68 of the Tax Code from twenty to thirty days.
It will be entered into force on 1 January 2015.
Amendments to paragraph 6 of Article 68 of the Tax Code for correspondence as amended to Articles 37 and 256 of the Tax Code states that the taxpayer shall submit an additional liquidation tax return for VAT on reduction of VAT amount offset, if the taxpayer registered with the State base of taxpayers has referred the amount of VAT offset to deductions on CIT after deregistration on VAT, in accordance with paragraph 13 of Article 100 of the Tax Code.
It will be entered into force on 1 January 2015.
Article 69: “Procedure of tax reporting withdrawal”
Paragraphs 2 and 4 of Article 69 of the Tax Code were introduced amendments providing a review of tax reports submitted by the taxpayer after the expiration of the statute of limitations by the method of removal. Effective from 1 January 2014.
Article 71 “Extension of deadline for filing tax returns by the authorized body” and 72 “Extension of deadline for filing tax returns by the tax authority”
The Amendments simplified procedure of extension of the deadline for filing tax returns. It is a notification. Before 1 January 2014, deadlines for submission of tax reporting to tax authority were extended on the basis of a tax application. In order to optimize these procedures for large taxpayers to be monitored, paragraphs 2 – 6 of Article 71 of the Tax Code are excluded. Thus, one reduced a period of for the submission of the reporting on monitoring for the period from the maximum “up to three months” from the deadline set for the submission of such reporting, up to 60 calendar days.
Effective from 1 January 2014.
Article 79 “Long-term Contracts”
Article 79 of the Tax Code is excluded, since the provisions on long-term contracts have been transferred to articles 130-1, 130-2, 130-3 of the new § 5-1 “Long-term contracts” of Chapter 11, “Taxable income” of the Tax Code, in order to clarify determining income and expenses on long-term contracts and transfer of these provisions in the relevant chapter for the definition of taxable income for purposes of CIT. Effective from 1 January 2014.
Article 85 “Income included into Aggregate Annual Income”
Paragraph 4 of Article 85 of the Tax Code was amended by clarifying provisions on adjustment of income in accordance with Articles 131 and 132 of the Tax Code, AAI 3 considering such adjustments can have a negative value.
The amendment, in our opinion, may entail risks of reducing losses for the past periods by tax authorities, and possibly additional charge of CIT on the ground that, before the enactment of the amendment, the AAI could only have a positive or zero value on the basis of the provisions of Article 131 of the Tax Code. However, in this case reduction of deductions to a negative value cannot happen due to adjustments in accordance with Articles 131 and 132 of the Tax Code Effective from 1 January 2014
Article 100 ” Deductions”
Paragraph 18 of Article 100 of the Tax Code, by analogy with paragraph 4 of Article 85 of the Tax Code was amended by a provision stating that when adjusting deductions in accordance with Articles 131 and 132 of the Tax Code, the amount of deductions, subject to such adjustments can have a negative value. In addition, paragraph 14 of this article clarifies the amount of deductions of membership fees of private entrepreneurs subjects depending on whom they are paid to. In particular, contributions paid by the National Chamber of Entrepreneurs of the RoK shall be deductible in the amount approved by the Government.
Effective from 1 January 2014.
Article 115 “Non-deductible expenses”
In correspondence with the right of tax authorities to seek from the courts claims for invalidation of transactions (amendments to the wording of subparagraph 12) of paragraph 1 of Article 19 of the Tax Code), Article 115 of the Tax Code was amended by subparagraph 4-1), determining the prohibition for deduction of transaction costs invalidated on the basis of a court decision.
Effective from 1 January 2014.
Article 119 “Disposal of fixed assets”
Paragraph 14 of Article 119 of the Tax Code was amended to exclude reflection of the disposal in case of temporary cessation of use of fixed assets of group I used in seasonal production and, consequently, the definition of such assets.
Effective from 1 January 2014.
Article 123, “Investment tax preferences”
The wording of paragraph 5 of Article 123 of the Tax Code, in terms of determining the first commissioning the newly erected building on the territory of the Republic of Kazakhstan (a part of building) for the use of preferences by supplementing documents confirming such commissioning, namely acts of state acceptance commission was clarified by acts of acceptance commission.
Effective from 1 January 2009 backdate.
§ 5-1 “Long-term Contracts”
In connection with the exclusion of Article 79 of Chapter 9, “Tax Accounting Features” of section 3, “General Provisions” of the Tax Code one has introduced a new § 5-1 in Section 4 of CIT of the Tax Code with Articles 130-1 – 130-3, establishing the procedure for determining income and expenses on long-term contracts.
In determining income using the actual method, one provides for the possibility of adjusting income in excess of income on long-term contract for tax purposes during the term of the contract over income under such contract, as defined in the accounting of the taxpayer in accordance with IFRS and requirements of the RoK law on accounting and financial statements.
For the purpose of correspondence with the specified amendments to the Tax Code, paragraph 1 of Article 132 of the Tax Code of subparagraph 7) the wording of paragraph 4 of Article 132 of the Tax Code was determined.
In determining the income using the method of completion, the procedure for calculating the share of long-term contract and calculation of income for tax reporting period was determined.
Effective from 1 January 2014.
Article 156 “Non-taxable income” and 357 “Object of taxation”
In connection with the amendments to the Labour Code of the RoK for the social support of the population, in paragraph 1 of Article 156 of the Tax Code one has introduced sub 26-1) providing for exemption from PIT 4 imposed on individual’s income as an expense of the employer to pay for maternity leave, leave to employees who adopt a newborn child (children) less the amount of social benefits in the event of loss of income due to pregnancy and childbirth, adoption of a newborn child (children) carried out in accordance with the laws of the Republic of Kazakhstan on compulsory social insurance, – within the minimum wage set by law on the national budget and effective as of the date of accrual of income.
These provisions apply if they are provided for by the terms and conditions of employment and (or) the collective agreement, or an employer act. Amendments were also introduced to paragraph 2 of Article 257 of the Tax Code for exemption the stated income of an individual from social tax.
Effective from 1 January.
Article 237 “The date of the sales turnover”
Wording of paragraphs 1, 1-1 , 2, 9, Article 237 of the Tax Code has been changed.
Also, the article has been amended by paragraphs 2-1, 2- , 10, that:
1) presented and clarified provisions as a separate paragraph on the date of performance of turnover on sales of goods with the possibility of different conditions of delivery to the buyer in concluded agreements (contracts);
2) presented and clarified provisions as a separate paragraph 1-1 position the date of performance of turnover on works and services with the return of the principle determining the date of signing the act of work performed, services rendered or other document confirming the performance of works, rendering of services;
3) paragraph 2 provides for provisions on determining the date of performance of sales turnover of works and services in the provision of services for the provision of credit (loan, microcredit), the carriage of passengers, baggage, freight and mail by rail, providing for temporary possession and use of property, bank operations;
4) Paragraph 9 includes the dates of performance of the turnover for the acquisition of works, services provided by non-resident on the date of work performed, services rendered or a document confirming the performance of works, rendering of services. One has excluded determination of the date of the turnover performance on the acquisition on the earliest among dates specified in these documents;
5) A new paragraph 2-1 corresponds provisions of Article 237 of the Tax Code with the order of invoicing on the basis of a calendar month;
6) A new paragraph 2.2 makes provision in a separate paragraph of the current wording of Article 237 of the Tax Code on the work and services in execution of which documents are processed in accordance with the RoK laws on the railway transport;
7) a new paragraph 10 states that, if the documents specified in Article 237 of the Tax Code, except as defined in paragraphs 2 and 2-1, there is a number of dates, the date of signing of the document is the latest of these dates. That is, the determination of the date of performance of the turnover on sales on the earlier date is excluded. The above amendments to Article 237 of the Tax Code were introduced on 1 January 2014.
At that, Article 3 of the RoK Law dated 5 December 2013 No. 152 -V suspended effect of paragraph 8 of Article 237 of the Tax Code from 1 January 2012 to 1 January 2015. Thus, the issue of arising sales turnover on advance payments was settled until 1 January 2015. Article 238 “Amount of taxable turnover”
Article 238 was amended by paragraph 9-1, determining the amount of sales turnover when selling vehicles to an individual acquired by a legal entity from individuals, as the positive difference between the cost of sale and the cost of acquisition of vehicles.
Paragraph 10 of Article 238 of the Tax Code, to determine the amount of taxable turnover when transferring property in leases (except for return) was introduced clarifications. Effective from 1 January 2014.
Also, paragraph 7 of Article 238 of the Tax Code was introduced amendments clarifying amendments in terms of determining that a taxable turnover of a manufacturer of excisable oil products referred to in subparagraph 5) of Article 279 of the Tax Code, providing services on processing of give and take raw materials does not include the amount of excise duty payable (paid) in accordance with provisions of the Tax Code, when transferring such goods being a product of give and take raw materials. Effective from 1 January 2009 backdate.
Articles 243, 244, 244-2, 244-3, 276-13 , 288 of the Tax Code
In order to simplify documents circulation in hard copies and improve tax administration, these articles were introduced amendments providing for submission of a return on goods in soft copy on which in informational systems of tax authorities notifications of customs bodies on actual export of goods are available, as a main document confirming the right to apply a zero rate of VAT and exemption from excise, instead of a copy of the customs declaration on goods in a hard copy.
Effective from 1 January 2014.
Article 256 “Value-added tax to be offset”
Article 256 of the Tax Code is amended by a new paragraph 6, providing, in correspondence with changes in Articles 37 and 68 of the Tax Code, reduction of VAT offset deduction in the amount deductible under paragraph 13 of Article 100 of the Tax Code, if a taxpayer registered with the state database of taxpayers, applied paragraph 13 of Article 100 of the Tax Code, after VAT deregistration.Article 263 ” Invoice”
Paragraph 7 of Article 263 of the Tax Code was clarified. The amendment states that an invoice shall be issued not earlier than the date of turnover and not later than five working days after the date of the sales turnover performance. Also, the right of a VAT payer to issue invoices based on the results of a calendar month not later than the 20th day of the month following the month following which the invoice is issued, is additionally applied to services of cars (containers) operator, freight services through main pipelines. Effective from 1 January 2014.
Paragraph 7 of Article 263 of the Tax Code was amended by a provision stipulating that, in the case specified in paragraph 8 of Article 237 of the Tax Code, the invoice shall be issued not earlier and not later than five working days after the date specified in the signed document referred to in period 2 and 3 of part 2 of paragraph 1-1 of Article 237 the Tax Code.
This amendment will be entered into force on 1 January 2015.
Article 315 “Terms of payment of the subscription bonus”
Article 315 of the Tax Code, was amended by paragraphs 2 and 3, establishing the terms of payment of the subscription bonus when extending the contract territory, and when receiving a written permission for the right of subsoil use for exploration or production of widely occurring minerals used in construction (reconstruction) and repair of public roads, railways and hydro construction.
Effective from 1 January 2014.
Article 332 ” Object of taxation”
One has revised the wording of subparagraph 5) of paragraph 2 of Article 332 of the Tax Code, in terms of determining the natural gas used for own production needs:
“Unless otherwise provided by this subparagraph, for the purpose of this section, natural gas used for own production needs one recognizes natural gas produced by the subsoil user under subsoil use contract and used under this contract in accordance with the documents approved by the authorized body in the field of oil and gas:
– When conducting mining operations as fuel oil when preparing oil;
– For process and domestic needs;
– For heating oil at the wellhead and in oil transportation from the place of production to the place of storage and transshipment into the pipeline and (or) to another form of transport in accordance with the approved project documents;
– To generate electricity used in conducting mining operations;
– Re-injection into the subsoil in volume permitted by the approved project documents, except for re-injection into the subsoil under paragraph 4 of this article;
– For the purpose of gas lift (mechanized) method of operation of producing oil wells in the volume stipulated by project documents approved by the authorized body in the field of oil and gas.
Natural gas produced by the subsoil user under a subsoil use contract and used for re-injection into the subsoil in order to maintain reservoir pressure in the oil and gas zones under another subsoil use contract of this subsoil user to the extent provided for by the approved project documents is recognized as natural gas used for own production needs”;
“Paragraph 2 of Article 332 of the Tax Code was amended by subparagraph 5-1), determining, in order to promote such use of associated gas, associated gas volumes used for the production of liquefied petroleum gas:
“5-1) Associated gas used for production of liquefied petroleum gas in the volume per liquefied petroleum gas sold in the domestic market of Kazakhstan. At the same time such a volume of LPG shall be approved by the authorized body in the field of oil and gas, and be obligatory for the domestic market of the RoK in accordance with the RoK laws in the field of gas and gas supply.”.
Paragraph 2-1 of Article 332 of the Tax Code was amended by a provision clarifying that the volumes of the use of natural gas for own production needs and associated gas used for the production of liquefied petroleum gas shall be determined by the authorized body in the field of oil and gas:
“2-1. Volume of natural gas used for own production needs, and (or) associated gas used for the production of liquefied petroleum gas, in accordance with subparagraph 5) and 5-1) of paragraph 2 of this Article shall be the actual amount of such natural and used (or) associated gas within the volume specified in the documents approved by the authorized body in the field of oil and gas.”
The foregoing amendments to Article were entered into force backdate – from 1 January 2009. Therefore, in our opinion, there is a risk of TPUM5 additionally imposed by tax authorities in case of failure to meet requirements, enacted backdate.
Please note that, this approach of the tax authorities contradict provisions of Article 3 of the Tax Code in full. Therefore, additional charges due to amendments to Article 332 of the Tax Code, in our opinion, contradict basic requirements of the Tax Code and subject to appeal.
Article 334 “Procedure for determining the cost of crude oil, gas condensate and natural gas The first period and subparagraph 2) of paragraph 5 of Article 334 of the Tax Code is stated in new version, which establishes provisions on associated gas:
“For the purpose of calculating TRUM, the cost of natural gas sold by the subsoil user in the RoK domestic market and (or) used for own production needs, as well as associated gas used for the production of liquefied petroleum gas shall be determined in the following order:”;
“2) when using associated gas produced for the production of liquefied petroleum gas in accordance with the conditions specified in subparagraph 5-1 ) of paragraph 2 of Article 332 of this Code and (or) the use of natural gas produced on own production needs – as the product of the actual volume:
Of associated gas used for the production of liquefied petroleum gas, and industrial production costs per unit of output, as determined in accordance with IFRS and the RoK legislation requirements on accounting and financial reporting, increased by 20 percent; … “.
The foregoing amendments to Article enacted backdate from 1 January 2009.
Article 365 “Taxpayers”
Amendments to Article 365 of the Tax Code include from the list of persons exempt from tax on vehicles owners of cars with engine capacity of more than 4000 cubic centimeters, the registration (re-registration) of which performed by the authorized body after31 December 2013. Effective from 1 January 2014.
Article 367 “Tax rates”
One has introduced the higher rates on cars with an engine capacity of more than 3000 cubic centimeters made (manufactured or assembled) in Kazakhstan after 31 December 2013, or imported into the territory of the RoK after 31 December 2013:
Object of Taxation Tax rate ( MRP6 )
|
Sl. No. |
Object of taxation |
Tax Rate (MCI6) |
|
1. |
Cars with engine capacity (cc) |
|
|
Over 3000 to 3200 inclusive |
35 |
|
|
Over 3200 to 3500 inclusive |
46 |
|
|
Over 3500 to 4000 inclusive |
66 |
|
|
Over 4000 to 5000 inclusive |
130 |
|
|
|
Over 5000 |
200 |
Article 367 of the Tax Code was amended by paragraph 2-1, which provides for an increase in the amount of tax on vehicles per unit exceeded the lower limit of the engine volume by 7 tenge. Effective from 1 January 2014.
Article 387 “Adjustment of basic tax rates”
Article 387 of the Tax Code was amended by paragraph 6, according to which the basic rate in a inhabited locality on land plots intended for construction and not used for appropriate purposes, or used in violation of the legislation of the RoK increased tenfold, except for land plots of towns of regional significance, towns, villages. Tax rates on land plots that were not developed within two years after granting were increased.
According to Article 5 of the Law dated 5 December 2013 No. 152 -V, for the purposes of paragraph 6 of Article 387 of the Tax Code, the obligations established by the specified paragraph arise after the two year period from the date of entry into force of the said paragraph. Effective from 1 January 2014.
Article 406 “Tax base”
Amendments introduced to paragraph 2 of Article 406 of the Tax Code provides for an increase of the base cost of one square meter of housing, dachas for calculating the tax on personal property twofold. The following inhabited localities are exceptions as per categories: city of regional significance, district town, towns and villages. Thus, the base rate for the city of Almaty, which before 1 January 2014 was 30 000 tenge per 1 sq. km. m, increased to 60 000 tenge. Effective from 1 January 2014.
Article 408 “Tax rates”
Tax rates on personal property: housing, dachas with the price of 75 million tenge were increased twofold inclusive in subparagraphs 1 – 11 of Article 408 of the Tax Code, less than half for housing, dachas with the price of more than 75 million tenge to 350 million tenge inclusive on subparagraphs 12 – 13 of Article 408 of the Tax Code , and more than 2.9 and 3.9 folds for housing, dachas with the price of more than 350 million tenge to 450 million tenge inclusive, more than 450 million tenge on tax rates under subparagraph 13 of Article 408 of the Tax Code. Effective from 1 January 2014.
Article 428. Conditions for application of a special tax regime
One introduced amendments with respect to reduction of the period of the next change over from the generally established procedure of taxation to STR from two calendar years to one calendar year when changing over from the special tax regime (STR) to general procedure. Effective from 1 January 2014.
Article 528 “General Provisions”
Article 528 of the Tax Code was amended by paragraph 1-1, which establishes definition of external (visual) advertising for the purposes of the Tax Code, as advertising placed:
“1) in the capital, cities of national and regional importance;
2) on vehicles registered in the capital cities of national and regional importance;
3) on objects of stationary placement of advertising in the right-of-way of public roads of the republican and regional significance, with the exception of those placed on objects of stationary advertising placement in the right-of-way of public roads of the republican and regional significance within the limits of the territory of cities of district significance, villages and settlements.”
Effective from 1 January 2014.
Article 557 “Tax Secrecy“
Paragraph 3 of Article 557 of Tax code was supplemented by sub-paragraphs 14) – 16), according to which tax service authorities should present information about taxpayers (tax agents), constituting the tax secret without obtaining a written permission of a taxpayer (tax agent) in the following cases:
14) to an authorized body responsible for business issues in respect of information necessary for the maintenance of a register of private business entities.
The list of presented information constituting tax secret and the procedure for their submission shall be established by the authorized body in conjunction with the competent authority on entrepreneurship;
15) to the authorized body responsible for customs issues. The authorized body on customs issues shall approve the list of officials who have access to information constituting tax secret;
16) to the authorized body in the field of implementing the republican budget and servicing implementation of local budgets.
Also, sub-paragraph 13) of paragraph 3 of Article 557 of the Tax Code, in respect of submission of the above information to the competition authority was supplemented by a clause stating that the list of submitted information constituting tax secret and procedures for their submission shall be established by the authorized body in conjunction with the competition authority. The foregoing amendments are effective from 1 January 2014.
Article 577 “Registration in the Place of Location of Taxable Items and (or) Items Relating to Taxation“
Paragraph 3 of Article 577 of the Tax Code was clarified as to which tax authority a tax application for registration should be submitted to: at the place of location of taxable items and (or) items related to taxation by IE, individuals and legal entities having taxable items and (or) items related to taxation on the right of ownership, permanent land use, primary gratuitous temporary land-use, temporary paid land use, temporary tenure, trust management.
In particular, such application should be submitted to the tax authority at the place of an entity’s location or at the place of location of taxable items and (or) items related to taxation.
Effective from 1 January 2014.
Article 584 “Acceptance of Tax Forms“
A number of amendments was introduced to paragraph 5 of Article 584 of the Tax Code that establish cases where tax forms (except for tax registers) are deemed as non-submitted to the tax authorities, if:
– there are any violations of the requirements of the format-logic control in the structure of the electronic format of tax reporting forms effective from 1 January 2015;
– there are any violations of requirements of paragraph 1 of Article 72 of the Tax Code regarding the manner of filing tax returns in the case of extension of tax reporting submission deadlines, effective from 1 January 2014;
– there are any violations of requirements of paragraph 2 of Article 270 of the Tax Code regarding the submission, simultaneously with the VAT declaration, of registers of invoices for goods , works and services purchased and sold during the tax period, unless otherwise provided by the Tax Code ,effective from January 1, 2015.
Article 587 “Results of In-House Supervision“
Paragraph 1 of Article 587 of the Tax Code is set out in the new wording, which provides for a variety of consequences in case of violations identified as a result of in-house control with varying degrees of risk (high, medium, low). In particular:
– on violations with a high degree of risk, a notice shall be formulated for elimination of violations found as a result of in-house supervision, with the attached description of violations identified.
– on violations with a medium degree of risk, a notice shall be formulated concerning violations found as a result of in-house supervision, with the attached description of violations identified.
Notification on violations identified by the results of in-house control , shall be sent to the taxpayer (tax agent) for information within the period specified in sub-paragraph 7) of paragraph 2 of Article 607 of the Tax Code, and is not binding.
The form of notice of violations identified by the results of in-house control shall be established by the authorized body.
The provisions of this paragraph shall not apply to violations with a low degree of risk identified by the results of in-house control. Effective from 1 January 2014.
Article 625 “General Provisions“
In connection with the amendments made in the paragraph 1 of Article 587 of the Tax Code, paragraph 4 of Article 625 of the Tax Code was supplemented by sub-item 1-2, which sets provisions for determining the degree of risk of violations revealed by the results of in-house control:
At that, the criteria for evaluating the degree of risks, referred to in this sub-paragraph, shall be confidential (official) information, except the criteria approved by the authorized body in conjunction with the competent authority on entrepreneurship. Effective from 1 January 2014.
Article 627 “Definition, Types and Forms of Tax Audits“
Amendments were introduced to paragraphs 7 and 9 of Article 627 of Tax code, determining:
– in respect of time study, that the decision to conduct a time study shall be made by the tax authority at the location specified in the registration information of the taxpayer, and (or) at the location of the taxable item and (or) item related to taxation;
– in respect of non-scheduled audits, specified in sub-paragraph 2) of paragraph 9 of Article 627 of Tax code, that they can be conducted for a previously audited period on the basis of a decision of a tax authority in cases set out by Article 627 of Tax code. Effective since 1 January 2014.
Section 21 “Appealing Results of Tax Audits and Acts (Omission of Act) of Official Persons of the Tax Service Authorities“
Amendments were introduced to the articles 666, 667, 671, 677, 681 of the Tax Code, in respect of ordering issues related to appealing the outcome of a tax audit conducted by the authorized body, determining the deadlines for filing the appeal, the sending and delivery of the decision on the appeal to the taxpayer ( tax agent), namely :
1) paragraph 2 of Article 666 of the Tax Code specifies that appeal directly to the competent authority shall be filed on the notice of the results of the tax audit , drawn up by the authorized body, and not other tax service authorities on the audit held with participation of officials of the competent authority;
2) paragraph 1 of Article 667 and paragraph 1 of Article 677 of Tax code specify that the appeal shall be filed within thirty working days from the day following the date when the notice was delivered to the taxpayer (tax agent) following the date when the taxpayer received the decision on the results of reviewing the appeal;
3) paragraph 1 of Article 671 and paragraph 1 of Article 681 of Tax code state that the decision on the appeal shall be sent by registered mail with a delivery note or handed to the taxpayer (tax agent) against a receipt;
4) Article 677 of Tax code was supplemented by provisions related to the date of filing an appeal to an authorized body and the date of receipt of the authorized body’s decision. Effective from 1 January 2014:
1 Republic of Kazakhstan.
2 Corporate Income Tax.
3 Aggregate Annual Income.
4 Personal Income Tax.
5 Tax on production of useful minerals.
6 Monthly Reference Index.
