Kazakhstan: Tax Alert - January 2016


1. Regarding the Agreement on pension provision for employees of the Eurasian Economic Union (further – the "EEU") member-states

As it was mentioned in previous tax alerts, the draft of the international Treaty on pension provision for employees of the EEU member-states (further –the "Treaty") was approved.

So, in accordance with the Treaty, pension appointment and payment would be implemented in the following order:

  • for the work experience, accumulated before the entry into force of the Treaty, pensions shall be granted and paid in accordance with the legislation of the EEU member-states and international treaties;
  • for the work experience, accumulated after the entry into force of the Treaty, the pensions shall be granted and paid by the EEU member-states on whose territory the relevant work experience was accumulated.

The following Treaty was developed with the purpose to organize free flow of workforce on the territory of the EEU member-states, since the lack of regulation on the pension provision while working in other EEU countries was one of the significant barriers.

2. Regarding the implementation of utilization fee

The Government of the Republic of Kazakhstan (further – the "RoK") approved the Resolution of the Government of the RoK №28 "On approval of realization rules for extended producers (importers) responsibility" dated January 27, 2016 (further –the "Resolution").

As such, under the Resolution the utilization free was implemented in the RoK and shall be paid by the importers of transport vehicles, automobile manufacturers operating within the RoK and citizens who bought automobiles abroad.

The base amount for utilization fee equals to product of 50 monthly calculation index (further – "MCI") and vehicle coefficient specified in the Order of the Minister of Energy of the RoK №762 "On approval of method of fee calculation for organization of collection, transportation, recycle, disposal, use and (or) waste utilization" dated December 25, 2015. It shall be noted that MCI for 2016 equals to 2 121 tenge.

Further, utilization fee would be paid only once (by serial number- VIN - code) at the moment of vehicle registration, except for vehicles imported prior to January, 2016 and vehicles that have already been registered in the RoK.

The Resolution becomes effective from the date of its first official publication – January 28, 2016.

3. Regarding the value added tax (further – the "VAT") offset on services acquired for own employees and/or for individuals

In accordance with the information provided by the Taxpayers Association of the RoK (further - the "TAP") currently taxpayers face the situation, when during the projects taxpayers attract employees and contractor companies on which taxpayers bear the cost of providing them food, accommodation and other services.

Further, individuals who provide such services issue invoices to taxpayer with VAT.

In connection with that, members of the TAP appealed to the State Revenue Committee of the Ministry of Finance of the RoK (hereinafter – "SRC MF RoK"), with request to clarify whether the taxpayers have the right to offset VAT amount on invoices received.

As such, SRC MF RK after consideration of TAP's request in the letter №SRC-07-1-YL-Е-1882-SRC-1432 dated January 22, 2016 explains that in case involved in project personnel was necessary to perform works or services for the purpose of taxable turnover, then taxpayers have the right to offset the VAT amount on such expenses.

In addition, SRC MF RK informs that expenses in the form of employees' benefit in kind are deductible for the corporate income tax purposes as income of employees' without VAT.

4. Regarding the criteria for allocation of goods imported by individuals for business activity purpose

According to the information provided by the TAP, Ministry of Finance of the RoK have signed Order №717 "On confirmation of criteria for allocation of goods imported for business activity purpose" (further – the "Order") dated December 29, 2015.

Thus, in accordance with the Order, shipment and transfer of goods, performance of works and rendering of services for sale, exchange, donation and transfer of the pledged goods to pledge holder that exceeds 12 minimum salaries (hereinafter – "MS") would be recognized as import of individuals for business activities. It shall be noted that MS in 2016 is equal to 22 859 tenge.

The Order becomes effective in 10 calendar days after its first official publication - January 25, 2016 and extends to the relations arose from January 1, 2016.

5. Regarding the terms for allocation of goods, works/services of realization taxed at zero rate to the constant realization

In accordance with the information provided by the members of the TAP on January 27, 2016 the resolution №29 "On approval of rules determining the amount of excess recoverable VAT amount and criteria for allocation of goods, works/services of realization taxed at zero rate to the constant realization (further - the "Resolution") was signed, that amendments the Resolution №373 from March 20, 2009.

In accordance to the amendment, now to the constant realization of goods, works/ services taxed at zero rate (further – "Realization") relates to Realization performed during three consecutive tax periods, at least once in each quarter.

Whereas under the previous version of the Resolution, Realization was defined as Realization performed during two consecutive quarters, prior to the tax period, in which turnover taxed at zero rate was performed and on which the recoverable VAT was determined.

The Resolution enters into force in a retrospective order from - January 1, 2014.

6. Regarding the changes in the rules on tax accounts maintenance

The Ministry of Finance of the RoK by the Order №634 from December 9, 2015 introduced amendments to the Order №622 from December 29, 2008 "On approval of rules for maintenance of tax accounts" (hereinafter – the "Rules").

Henceforth, under the amendments, taxpayers could receive information on existence/absence of tax liability on obligatory pension contributions (hereinafter –"OPC"), obligatory professional pension contributions (hereinafter –"OPPC") and social contributions in electronic format through:

  • web-portal "electronic government";
  • web application of the State Revenue Committee on information systems;
  • State Corporation "Government for citizens" (prior-Citizens Serviсe Center").

Further, according to the changes, amendments to the paragraph 170 of the Rules were introduced, in compliance with which to offset or refund the excessively paid customs duties, taxes and penalties, taxpayer henceforth should communicate with the authority of state revenues at the place of its registration where customs declaration, customs escort of goods and vehicles was performed, in order and terms set by tax legislation.

Additionally, according to the Rules, amendments to the paragraph 90 were introduced, according to which coercive recovery measures of tax liability would apply to the taxpayer within 30 working days from the notification date of a result of tax audit.

The amendments become effective from January 1, 2016.

7. Regarding the range limits for exchange rate

According to the Resolution of the Chairman of National Bank of the RoK №257 as of December 19, 2015 allowed deviations of purchase exchange rate from selling exchange rate for the foreign currency for operations conducted through exchangers of authorized banks and organizations were set:

  • USA dollar - 6 tenge;
  • Euro - 7 tenge.

The Resolution came into force from February 1, 2016.

8. Regarding the draft law on avoidance of double taxation with Czech Republic

On January 22, 2016 the Senate Deputies of the Parliament of the RoK have approved the draft law "On ratification of the Protocol on amendments and additions to the Convention between the RoK and the Czech Republic on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital (further – the "Draft Law")

Thus, in accordance with the Draft Law amendments were introduced to the paragraph 3 article 2 of the Convention concluded between the RoK and Czech Republic on avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital, in particular clarification of the types of taxes to which Convention applies.

The amendments were introduced in articles "Resident", "Percent", in accordance with which interest received by State, National Bank or any other state organization are not subject to taxation in the state where income was generated.

Aside from the above mentioned, the Draft Law provides the obligation of the Contracting States to exchange information regardless of the existence of the Law "On the confidentiality of information".

As of today, the Draft Law was transferred to the head of the Chamber of the Senate Committee responsible for its preparation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions