The procedure for the submission of a Tax application

1. a tax application shall be submitted by the taxpayer (tax agent) to the tax authoritiesin accordance with the procedure and timing established by this Code.

2. Taxpayers (tax agents) shall be entitled to file a tax application to the appropriate tax authorities, unless otherwise established by this Code, at their discretion by means as follows:

1) by personal appearance – in hard copy;

2) by registered mail with delivery notification – in hard copy;

3) in electronic form enabling computer-assisted information processing – in the form of a taxpayer’s electronic document.

Taxpayers (tax agents) shall be entitled to file a tax application through public service centers.

The list of tax applications, which may be filed through public service centers, shall be established by the authorized body jointly with the authorized informatization body.

3. When filing a tax application on paper by personal appearance, the indicated tax form shall be compiled in two copies, one copy shall be returned to the taxpayer (tax agent) with the note of the tax authority.

4. The structure of the electronic format of a tax application, the software for the compilation and submission of tax applications in an electronic form and updates of such software, shall be posted on the Internet resource of the authorised body not later than the 1st January of current year.

5. The introduction of amendments and (or) additions to tax applications shall be carried out in the cases and in accordance with the procedure established by this Code.

§ 3. Tax Registers article 77. Tax Registers

1. A tax register – a document of the taxpayer (tax agent) which contains information on taxable items and (or) items relating to taxation.

Tax registers are intended for summarising and categorising information, facilitating tax accounting objectives specified in paragraph 3 of article 56 of this Code.

Formulation of tax accounting data shall be carried out by way of recording information which is used for the purposes of taxation, in a chronological order and by ensuring comparability of tax accounting data between tax periods (in particular, in relation to transactions the results of which are accounted for in several tax periods, affect the size of taxable items in subsequent tax periods, or are carried forward for several years).

Tax registers shall be maintained in accordance with the special-purpose forms. Forms of tax registers and the procedure for recording tax accounting data in the same shall be independently elaborated by a taxpayer (tax agent), except for the tax register forms established by the authorized body, and shall be stipulated by the tax accounting policy.

The accuracy of presentation of business transactions in tax registers shall be confirmed by persons who sign them.

2. The tax registers shall comprise the following:

1) tax registers which are compiled by the taxpayer (tax agent) independently in accordance with the forms established by the taxpayer (tax agent) in the tax accounting policy subject to provisions of article 56 of this Code;

2) tax registers compiled by a taxpayer (tax agent), for which the compilation forms and rules are established by the authorized body.

3. Tax registers must contain the following obligatory details:

1) title of the register;

2) identification number of the taxpayer (tax agent);

3) period for which a register is compiled;

4) surname, name, patronymic (where available) of the person in charge of compiling such register.

4. The authorized body shall have the right to establish tax register forms for the disclosure of the following information:

1) on applying exemptions from taxation, reduction of taxable income under corporate income tax, investment-related tax preferences;

2) on computing value balances of groups (subgroups) of fixed assets and subsequent costs relating to fixed assets;

3) on derivative financial instruments;

3-1) on amounts of management and general administrative expenses of a non-resident legal person attributed to deductions of its permanent establishment in the Republic of Kazakhstan;

3-2) property transferred under financial lease;

3-3) on accounting the reductions in the amounts of claims against debtors stipulated by subparagraphs 7) and 8) of paragraph 2 of Article 90 of this Code;

4) on invoices drawn up and received by a value-added tax payer;

5) {~};

6) on accounting the purchase of agricultural products from a person engaged in personal subsidiary farming by a procurement organization operating in the agribusiness industry, and the sale thereof;

7) on tour operator’s services – in terms of inbound and outbound tourism.

The provisions of this paragraph shall not apply to individual entrepreneurs who in accordance with the regulations of the Republic of Kazakhstan concerning accounting and financial statements do not keep accounting records and do not prepare financial statements.

4-1. For individual entrepreneurs, who in accordance with the law of the Republic of Kazakhstan concerning accounting and financial statements do not keep accounting records and do not prepare financial statements, the authorized body shall have the right to establish tax register forms for the disclosure of the following information:

1) revenue accounting;

2) accounting of acquired goods, works, and services;

3) accounting of individuals’ income taxed at source, tax liabilities with respect to such income, obligations with respect to accounting of obligatory pension contributions, obligatory professional pension contributions and social insurance contributions, including all taxes and contributions;

4) accounting of tax obligations with respect to:

emissions tax;

charge for the use of water resources from surface sources.

5. In the case of maintaining tax registers on paper, correction of mistakes in such tax registers must be motivated and confirmed by the signature of the person in charge who made a correction, by specifying the date and reasons for so introduced corrections.

6. Tax registers shall be presented to officers of the tax authorities on paper, and (or) electronic media when documentary tax audits are carried out – pursuant to request of tax authorities' officers who carry out such audits.

When forming tax registers in electronic format the taxpayer (tax agent) shall be obliged during the tax inspection at the request of officials of the tax authority to file tax registers on electronic media and hard copies of such tax registers, certified with signatures of director and persons (person) responsible for formation of such tax registers of a taxpayer (tax agent) and also with a stamp of the taxpayer (tax agent), except when a taxpayer (tax agent) has no stamp for reasons specified by the legislation of the Republic of Kazakhstan.

CHapTER 9. spECial COnsiDERaTiOns in TaX aCCOunTinG article 78. financial leases

1. Unless otherwise provided for by this Article, financial lease shall mean a transfer of assets under a leasing agreements concluded in accordance with the legislation of the Republic of Kazakhstan for a period exceeding three years provided that it meets one of the following requirements:

1) transfer of assets into possession of a lessee and (or) providing the lessee with the right to purchase assets at a fixed price as defined in the lease agreement;

2) period of a finance lease exceeds seventy-five percent of the useful life of the assets to be transferred in accordance with the finance lease;

3) current (discounted) value of the lease payments for the entire period of the finance lease exceeds ninety per cent of the value of the assets to be transferred under the finance lease.

Secondary leasing of leased property is also considered as financial leasing.

secondary lease shall mean provision to other lessee(s) on lease of leasing items which remain the property of the lessor as a result of termination or cancellation of a lease agreement or as a result of modification thereof due to change in the number of leasing items (for the purpose of this article hereinafter referred to as the “primary leasing agreement”), provided that all the following conditions are met:

the date of termination, cancellation of amendment of primary leasing contract, and the date of conclusion of secondary leasing contract (contracts) fall within the same tax period determined in article 269 of this Code;

secondary leasing contract (contracts) has the provisions stipulated in primary leasing contract except for the provisions determining the quantity of leased objects, leasing payments, and leasing terms;

the quantity of objects transferred under secondary leasing does not exceed the total quantity of objects transferred under the primary leasing contract;

if the primary leasing contract provides for the annuity payment method – the total amount of leasing payments under secondary leasing contract (contracts) does not exceed the total amount of leasing payments under primary leasing contract minus the amount of leasing payments assessed as of the date of leasing contract termination;

if the primary leasing contract provides for the method of payment in equal shares – the price of object transferred into secondary leasing does not exceed the price of leased object under the primary leasing contract minus the amount of leasing payments assessed as of the date of leasing contract termination, the amount of fee rate under secondary leasing contract (contracts) does not exceed the amount of fee rate under the primary leasing contract;

the objects are transferred into the secondary leasing for the terms not less than three years.

Transfer of property on financial lease shall be considered as a sale of the property by a lessor to a lessee. In this case the lessee shall be deemed an owner of the lease item, and the leasing payments shall be considered as payments on a loan extended to the lessee.

For the purposes of this article:

annuity payment method – the method of lease payments calculation where lease payments are determined in equal shares paid at regular intervals;

equal shares payment method – the method of lease payments calculation where lease payments, except for leasing remuneration, are determined in equal amounts.

2. Where a lease agreement provides for the lessee's right to extend the period of a finance lease, the period of the finance lease shall be determined in view of the period for which the actual extension is made.

3. Value of the assets transferred (received) under a finance lease (through leasing) shall be determined as of the date of concluding the lease agreement.

assets under a lease, to be received by the lessee as main assets, investments into real estate, biological assets, shall be recognised as assets to be transferred under a finance lease.

4. Financial lease shall not include:

1) leasing transactions in the case of termination of underlying leasing agreements prior to the expiry of three years from the date of conclusion of such agreements, except for the following cases:

recognition of the lessee as bankrupt in accordance with the legislation of the Republic of Kazakhstan concerning rehabilitation and bankruptcy and exclusion of the lessee from the National Register of Business Identification Numbers;

recognition of a natural person – lessee on the basis of a court decision which entered into force as missing or declaring his deceased, or legally incapable, or restrictedly competent, establishing his invalidity of I, II group, and also in the case of death of the natural person – lessee;

entering into legal force of a resolution of a law enforcement officer on the return of the court orders to the lesser in connection with the absence with the lessee of assets, including money, securities or income on which recourse may be taken, and where the measures taken by the law enforcement officer specified by the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of law enforcement officers on disclosure of his assets, including money, securities or income turned out to be fruitless;

granting not later than date of dissolution of a lease agreement (termination of obligations under the lease agreement) of leased items to the secondary lease in compliance with the following terms:

transfer of objects under secondary leasing;

2) leasing transactions whereby amounts of lease payments (in accordance with the agreement and (or) actually paid) for the first year of the lease agreement validity is more than 50 per cent of the price of the lease item;

3) leasing transactions for which a lessee has changed as a result of substitution of persons in the obligation, except for cases of reorganization of the lessee before the expiry of three years from the date of conclusion of the leasing agreement;

3-1) leasing transactions for which a lessor has changed as a result of substitution of persons in the obligation, except for cases of reorganization of the lessor by way of transformation;

4) transactions associated with transfers of assets into sublease.

article 79. {~}