Tax Alert: March 2019

SIGNUM regularly provides Legislative Alerts to keep Clients informed about important legislation or regulatory changes in Kazakhstan. This Alert includes recent developments related to the following finance and tax matters:

  1. Documentary Control Rules;
  2. Transaction Monitoring Rules;
  3. Rules for the disclosure of information on taxpayers by the tax authorities.
1. Documentary Control Rules

On 28 February 2019, the Rules for Conducting Documentary Control were amended by the Order of the Finance Minister of Kazakhstan No.148. The Order is effective from 17 March 2019.

In particular, the Rules amended procedures on the appeal process.

Thus, according to the results of appealing objections consideration, one of the following decisions can be made:

1) full satisfaction of the objection - in case if all objected issues agreed and supported by the tax officers;

2) partial satisfaction of the objection – when the tax officers agreed with part of the objected matters;

3) refusal to satisfy an objection - in case of disagreement with all the disputed issues.

Also, the changes affected the scope of the control over the public procurement depending on the stage of procurement process:

1) first direction - from the day the tender was announced and within ten calendar days from the date of posting the text of public procurement announcement through the tender;

2) second - within ten calendar days from the date of posting on the web portal of the protocol of preliminary discussion of the draft tender documentation;

3) third - within three working days from the date of posting on the web portal of the preliminary admission protocol;

4) fourth - control as part of SRM prior signing the public procurement contract and in the event of receiving grounded complaints.

For the full version of the Order, please email us at tax@signumlaw.com or follow the link.

2. Transaction Monitoring Rules

On 18 February 2019, the Rules on monitoring of transactions were amended by the Order of the Finance Minister of Kazakhstan No. 118. The Order came into effect on 4 March 2019.

According to the Order, clause 2 of the said Rules was amended by outlining the options of transactions monitoring by means of observing the prices applied in transactions and by collecting the information on international business transactions from controlled transactions participants.

For the full versions of the Order and the Rules, please email us at tax@signumlaw.com or follow the link.

3. Rules for the disclosure of information on taxpayers by the tax authorities

On 4 March 2019, the Joint Order of Finance Minister of Kazakhstan No. 1040 dated 30 November 2018 and the regulatory resolution of the Accounts Committee on control over the execution of the republican budget No. 3-НҚ dated 4 March 2019 was enacted.

This Order approved Rules for the disclosure of tax secret information by the tax authorities to an authorized body of external state audit and financial control without obtaining the written permission of the taxpayer.

Following information now can be disclosed to the said state body without written consent of the taxpayer:

  • Taxpayers’ personal accounts;
  • Taxpayers’ tax forms;
  • Tax control results;
  • Information from the state taxpayers’ database;
  • Information on offsets and returns of taxes, other obligatory payments to the budget, penalties and fines of taxpayers;
  • History on tax obligations and their fulfilment;
  • Tax debts;
  • Data on appealing the results of tax audit and actions (inactions) of officials;
  • Information on taxpayers’ taxable objects as well as on transactions of taxpayers;
  • Information on the write-off of taxes and penalties;
  • Analytical reports generated on the basis of tax reporting of taxpayers.

For the full versions of the Order, the Rules and the List, please email us at tax@signumlaw.com or follow the link.

The external links in this Alert referred to the web-sources in Russian language. Should you have any questions or require any further information please let us know.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please note that Kazakhstan is an emerging economy, and its legislation and legal system are in constant development. Should you have any questions or want to discuss matters addressed in this Client Update, please contact us.