Kazakhstan Chamber of Commerce in the USA


Doing business and Public Procurement in Kazakhstan 0

Posted on January 24, 2011 by KazCham

On January 20 and 21, 2011 KazCham, together with the Embassy of the Republic of Kazakhstan and Linkage & Mind Law Firm held two webinars dedicated to legal issues of doing business, current economic situation and public procurement in Kazakhstan.

There were 30 registrants from Canada, Latvia, Austria, USA, Great Britain and Kazakhstan. It was the first webinars  among planned events this year. The next seminars will be held in Astana and Almaty and will be dedicated to Public Private Partnerships. It’ll be early March.

As for today, you can find all materials of webinars on KazCham slideshare channel and video of Doing business in Kazakhstan on youtube or here:

New Customs And Tax Regulation 0

Posted on August 02, 2010 by KazCham

The President of RK signed a Law , introducing amendments to legislation on customs regulation and taxation. Customs regulation issues will be considered in one of the next issues of the Tax and Legal Alert.

This issue considers basic amendments to the Tax Code, which can be divided into
two groups:

1. Amendments related to entering into the Customs Union Chapter 37-1, establishing the procedure of VAT assessment on export and import of goods, performance of works, rendering of services within the Customs Union (CU), is added. Thus, special provisions for determining the following were introduced:

• VAT payers in CU;

• place of supply for goods, works, services;

• dates of turnover on selling goods, works, services, taxed import;

• amount of taxed turnover, import and export;

• taxation of international transportations;

• taxation of services on processing of give-and-take raw materials;

• turnovers and import exempt from VAT;

• confirmation of export goods;

• procedure of VAT offsetting in CU, etc.

Chapter 38 of Section 9 “Excises” was also amended. In particular, the list of excise goods, rates for some goods have been changed, the date of completing operations during excise goods import within the Customs Union has been determined, and regulations on excises administration within CU have been amended.

2. Remaining amendments

• New terms, such as “operator” and “import of goods” were introduced.

• Article 17-1 on participation in tax relations through operator during subsoil use operations based on PSA  was introduced.

• Article 56 was amended with such term as “consolidated tax accounting” within Joint Operations Agreement.

• Amendment to Article 238 was introduced, according to which in the course of determining the amount of taxed turnover all foreign currency transactions for the purposes of VAT shall be restated applying market exchange rate as of the date of

• Article 271-1 on peculiarities of implementing VAT liabilities by subsoil users, fulfilling their activity within PSA within ordinary partnership was introduced.

• Amendments to Article 224 were introduced regarding determining states with beneficial taxation. In particular, it is specified that if the state has legislation on financial information confidentiality or laws allowing keeping actual property
owner, income in secret, provided that there is available international treaty, stipulating for information exchange between competent authorities, and established procedures are implemented, then such state will not be considered as
having beneficial taxation.

• Article 308 “Taxation of Activity on Subsoil Use Operations” is provided in edited version. The section is amended with Article 308-1 concerning procedure of
implementing tax liability by individual subsoil users.

• Amendments are introduced as well to sections on tax audits, procedures
of VAT refund, tax registration, etc. Please, take into consideration that changes, made by this Law, have different effective dates.

The same Law introduces amendments to the Law of RK “Concerning Enactment of the Tax Code”

Thus, Article 21 establishes excise rates for excise goods for the following periods:

• from 1 July 2010 to 1 January 2011;

•  from 1 January 2011 to 1 January 2012;

• from 1 January 2012 and thereafter excise rates established by clause 4 of Article 280 of the Tax Code will be effective.

Article 42 is amended by provision stating that for the period from 1 July 2010 to 1
January 2012 the excess of input VAT amount over tax amount accrued under return as at the end of reporting period will be performed under procedure established by articles 273 and 274 of the Tax Code.

For this period, VAT amount, paid on import of goods, and on commissioned
property, plant and equipment, property investments, purchased biological assets,
shall not be subject to return. The exception is VAT amount, paid on purchased works and services from non- resident, not being VAT payer in RK.

Article 49-1, establishing from 1 January 2012 VAT payment through offsetting
method on goods imported to the territory of RK from the territories of Customs
Union member states, was introduced .

The list of goods, which is established by the Government of RK, includes equipment, agricultural machinery, freight rolling stock, helicopters, airplanes, sea
crafts and other goods. However, these goods shall not be imported for further
sale, except for property transfer to financial leasing.

Customs duties for importing vehicles by individuals for personal use

The Decree of the Government of RK , introduced unified beneficial rates of
customs duties, taxes paid during customs declaration of vehicles imported to
Kazakhstan by individuals for personal use. These rates are valid till 1 July 2011.
This Decree is effective from 2 July 2010.

PricewaterhouseCoopers Kazakhstan, Tax & Legal Alert No.12 July 2010

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