On taxes and other obligatory payments to the budget (Tax Code)

On taxes and other obligatory payments to the budget (Tax Code)


Unofficial translation


Code of the Republic of Kazakhstan of December 25, 2017 № 120-VI.

Unofficial translation

Footnote. The table of contents is excluded by the Law of the Republic of Kazakhstan dated 24.06. 2021 No. 53-VII (shall be enforced ten calendar days after the day of its first official publication).

Footnote. Throughout the text, the words "agreements on the settlement of insolvency", "procedures for resolving insolvency", "agreement on the settlement of insolvency" are replaced respectively by the words "agreements on debt restructuring", "debt restructuring procedures", "agreement on debt restructuring" in accordance with the Law of the Republic of Kazakhstan dated December 27, 2019 No. 290-VІ (shall be enforced upon expiry of ten calendar days after the day of its first official publication).

the words “oralman” and “oralmans” are replaced by the words “kandas” and “kandases”, respectively, in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021).

This Code establishes basic principles of taxation, regulates the government-directed imposition, introduction, change, abolition of taxes, procedure for calculation and payment of taxes and other obligatory payments to the budget, as well as relations pertaining to the fulfillment of tax obligations.
1. GENERAL PART SECTION 1. GENERAL PROVISIONS
Chapter 1.BASIC PROVISIONS
Article 1. Basic definitions used in this Code

1. Basic definitions used in this Code for tax purposes are as follows:

1) information processing services – services for the collection and generalization of information, systematization of bulk information (data) and making the outcome of information processing available to the user;

2) special tax regime –special procedure for the calculation and payment of certain types of taxes and other obligatory payments to the budget, as well as filing tax returns on them by certain types of taxpayers;

2-1) organization of the body of the ASTANA International Financial Center - a legal entity registered in accordance with the current law of the ASTANA International Financial Center, whose 50 or more percent of the participation interest (voting shares) directly or indirectly belongs to the body of the ASTANA International Financial Center.

Indirect ownership means ownership by the body of the ASTANA International Financial Center through another legal entity that directly belongs to the body of the ASTANA International Financial Center;

This wording of subparagraph 3) is in effect until 01.01.2023 according to Law of the Republic of Kazakhstan № 121-VI as of 25.12.2017 (for the suspended wording, refer to the archival version of the Tax Code of the Republic of Kazakhstan as of 25.12.2017).

3) social welfare payments – mandatory pension contributions, mandatory professional pension contributions paid in accordance with the legislation of the Republic of Kazakhstan on pension protection, social contributions paid in accordance with the Law of the Republic of Kazakhstan “On Compulsory Social Insurance”, contributions for compulsory social health insurance paid in accordance with the Law of the Republic of Kazakhstan “On compulsory social health insurance”;

4) securities – shares, debt securities, depositary receipts, shares of mutual funds, Islamic securities;

5) arrears - calculated, accrued and overdue amounts of taxes and payments to the budget, including advance and (or) current payments on them, except for the amounts reflected in the audit findings report, the notice on the horizontal monitoring findings during the period of appeals in accordance with the procedure established by the legislation of the Republic of Kazakhstan in the part that is being appealed;

6) debt securities – government issue-grade securities, bonds and other securities recognized as debt securities in accordance with the legislation of the Republic of Kazakhstan;

7) discount on debt securities (hereinafter referred to as discount) - difference between nominal value and that of primary placement (exclusive of a coupon) or purchase price (exclusive of a coupon) of debt securities;

8) coupon on debt securities (hereinafter referred to as coupon) - amount payable (due) by the issuer in excess of the nominal value of debt securities in accordance with the terms of issue;

9) premium on debt securities - difference between the value of primary placement (exclusive of a coupon) or the purchase price (exclusive of a coupon) and the nominal value of debt securities, the terms of issue of which provide for payment on a coupon;

10) other obligatory payments to the budget (hereinafter referred to as payments to the budget) - mandatory money contributions to the budget in the form of fees, allowances, duties, except for customs payments effected in the amount and in cases set forth in this Code;

11) market exchange rate - the rate of the tenge to a foreign currency set in accordance with the procedure prescribed by the National Bank of the Republic of Kazakhstan together with the authorized state body regulating the activity in the field of accounting and financial reporting;

12) web application – a customized website of the authorized body protected from unauthorized access, designed to enable taxpayers to receive electronic tax services and fulfill their tax obligations;

13) grant – non-repayable assets for the achievement of certain goals (tasks) provided by:

states, governments of states to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, both individuals and legal entities;

international and state organizations, foreign and Kazakhstani non-governmental public organizations and foundations, whose activities are of charitable and (or) international nature and not contrary to the Constitution of the Republic of Kazakhstan, entered into the list fixed by the Government of the Republic of Kazakhstan following state bodies’ resolutions, to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, both individuals and legal entities;

foreigners and stateless persons to the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;

14) humanitarian aid – property provided on a non-reimbursable basis to the Republic of Kazakhstan in the form of food products, consumer goods, machinery, equipment, medicinal productsmedicines and devices, other assets sent by foreign countries and international organizations to improve living and welfare conditions of the population, and also to prevent and recover emergency situations of military, ecological, natural and man-made nature, which are distributed by the Government of the Republic of Kazakhstan through authorized organizations;

15) sponsorship – assets provided on a non-reimbursable basis to disseminate information on a person rendering this assistance:

among individuals in the form of financial (except for social) support for their participation in competitions, contests, exhibitions, festivals and for the development of creative, scientific, scientific and technical, inventive activity, to boost the level of education and sportsmanship;

among non-commercial organizations to enable them to achieve their statutory goals;

16) dividends are income:

in the form of net income or part thereof that is payable on shares, including underlying assets of depositary receipts;

payable on shares of a mutual fund, except for income on shares repurchased by a fund management company;

in the form of net income or part thereof distributed by a legal entity among its founders, participants;

from the distribution of assets in case of liquidation of a legal entity or reduction of its charter capital, and also from the repurchase of a participatory interest in a legal entity or part thereof from its founder, participant by this legal entity, the repurchase of shares from a shareholder by a legal entity that issued those shares;

payable on Islamic participation certificates;

received by a shareholder, participant, founder or their related party from a legal entity in the form of:

positive difference between the market price of goods, works, services and the price at which such goods, works, services are sold to a shareholder, participant, founder or their related party;

negative difference between the market price of goods, works, services and the price at which such goods, works, services are purchased from a shareholder, participant, founder or their related party;

the cost of expenses or obligations, not related to the entrepreneurial activity of a legal entity, arising for its shareholder, participant, founder or their related party to a third party, which the legal entity recovers without receiving compensation from a shareholder, founder, participant or their related party;

any assets and material benefit provided by a legal entity to its shareholder, participant, founder or their related party, except for the income specified in Articles 322-324 of this Code, and that from the sale of goods, works, services.

Income from the distribution of assets specified in this subparagraph shall be calculated as follows:

I = Vr – Ap,

where:

I – income from the distribution of assets;

Vr – the book value of assets (to be) received by a shareholder, participant, founder upon the distribution of assets, including those (to be) received in return for earlier contributed ones, at the date of transfer, (to be) stated in the accounting records of the transferring party, without revaluation and depreciation;

Ap:

the amount of paid-up charter capital attributable to the number of shares for which the assets are distributed;

the amount of the paid authorized capital attributable to the participation share to which the property is distributed, but not more than the initial value of such participation share, determined as prescribed in paragraph 7 of Article 228 of this Code, for the participant in whose favor the property is distributed.

The positive or negative difference specified in this subparagraph is calculated when adjusting taxable items. Taxable items are adjusted in the cases and in accordance with the procedure established by the legislation of the Republic of Kazakhstan on transfer pricing. For the purposes of this subparagraph, related parties are defined in accordance with paragraph 2 of this article;

17) design services - services for designing artistic forms, the appearance of products, facades of buildings, interiors of premises; artistic design;

18) standard procedure for taxation – a procedure for calculating, paying taxes and payments to the budget, filing tax returns on them, which is set forth in the Special Part of this Code, except for the procedure prescribed by Section 20 of this Code;

19) private practice owner - a private notary, private law enforcement officer, lawyer, professional mediator;

20) social support of an individual – compensation-free transfer, within a year, by a tax agent of assets worth up to 647 times of the Monthly Calculation Index established by the law on the republican budget and effective as of the start of a relevant financial year to an individual eligible for social support in accordance with the legislation of the Republic of Kazakhstan.

The list of categories of persons covered by this subparagraph shall be approved by the central authorized body for state planning in coordination with the authorized body;

21) personal property of an individual - tangible items of personal property that are owned by him/her or are his/her share in common property, provided all of the following requirements are met:

they are not used by an individual for business purposes;

they are not subject to the imposition of a self-assessed individual income tax;

22) subsoil use contract - an agreement between a competent authority or an authorized body for exploration and use of subsurface resources or a local executive body of a region, a city of national significance, the capital within their competence established by the legislation of the Republic of Kazakhstan on subsoil and subsoil use, and an individual and (or) a legal entity on the exploration, extraction, combined exploration and extraction of mineral resources, or construction and (or) operation of underground facilities not related to exploration and (or) extraction, or for national geological study of subsurface resources.

For the purposes of this Code, a subsoil use contract shall also stand forsubsoil use licenses and other forms of granting rights to subsoil use and (or) water use in accordance with the legislation of the Republic of Kazakhstan.

Given this, the terms “exploration contract”, “extraction contract”, “contract for combined exploration and extraction” and “exploration or extraction license” used in this Code are identical to the term “subsoil use contract”, the term “exploration and extraction contract” is identical to that of “combined exploration and extraction contract”;

23) subsoil use operations - works related to the geological study of subsoil, exploration and (or) extraction of mineral resources, including those connected with the exploration and production of groundwater, therapeutic muds, subsoil exploration for wastewater discharge, and also for construction and (or) operation of underground facilities not related to exploration and (or) extraction;

24) subsoil users - individuals and legal entities entitled to conduct subsoil use operations, including oil ones, and (or) water use operations in the territory of the Republic of Kazakhstan in accordance with the laws of the Republic of Kazakhstan;

25) employee:

an individual who is in labor relations with an employer and performs work under an employment agreement (contract);

a civil servant;

a member of board of directors or another management body of a taxpayer that is not asupreme management body, except for civil servants;

a foreigner or a stateless person assigned for work under an outstaffing contract by a non-resident whose activity does not constitute a permanent establishment in accordance with the provisions of paragraph 7 of Article 220 of this Code to a resident or another non-resident operating in the Republic of Kazakhstan through a permanent establishment;

26) structural unit of a legal entity - branch, representative office;

27) investment gold - gold, which meets the following requirements:

to gold coins:

such gold coins shall have no numismatic value;

the purity of gold coins shall be equal to or greater than 900/1000 of gross mass (which is equivalent to 900 fineness, 900 promille, 90.0 percent, or 21.6 karat).

A gold coin is recognized as that of numismatic value in case one of the following requirements is met:

it was minted before 1800;

it was minted using the technology ensuring a mirror-like surface, “proof” quality;

the mintage is not more than 1000 copies;

its market price exceeds the value of gold contained in the coin by more than 80 percent.

The value of gold contained in a coin is determined by way of multiplying a.m. gold fix (price quotation) set by the London Bullion Market Association as of the date of sale of the gold coin by the market exchange rate set on the previous business day of the date specified.

As to other gold:

such gold is affined (the purity of such gold is equal to or greater than 995/1000 of the total mass (which is equivalent to 995 fineness, 995 promille, 99.5 percent, or 23.88 karat);

such gold is up to the national or international standard, shall be manufactured in the shape of a measured or standard ingot and/or plate and carry the following marks:

as to a standard ingot and (or) plate:

serial number (may include a year of manufacture);

the trademark of a manufacturer;

gold purity (content);

year of manufacture, if not included in the serial number;

for a measured ingot:

type of metal;

the trademark of a manufacturer;

gold purity (content);

mass of an ingot;

28) engineering services - engineering and consulting services, research, design, calculation and analysis, development of feasibility studies of projects, elaboration of recommendations in the field of production management and administration, sales of products;

29) online marketplace – information system in the Internet providing intermediary services for the organization of e-commerce;

30) online store – information system in the Internet for the sale of goods through one’s own website;

31) Islamic securities – Islamic lease certificates and Islamic participation certificates;

32) professional mediator - a mediator who carries out his/her activity on a professional basis as required by the Law of the Republic of Kazakhstan “On Mediation”;

33) arithmetic-mean market exchange rate for the period – the rate calculated using the following formula:

R = (R1 + R2 + … + Rn)/n,

where:

R – arithmetic-mean market exchange rate for the period;

R1, R2.., Rn – the daily market exchange rate of a relevant currency set on the previous business day of each day of the period;

n – the number of calendar days in the period;

34) non-contract activity - any other activity of a subsoil user that is not expressly set out in a subsoil use contract;

35) contract activity - activity of a subsoil user carried out in compliance with the provisions of a subsoil use contract;

36) consulting services – services for providing explanations, recommendations, advice and other forms of consultation, including identification and (or) evaluation of problems and (or) possibilities of a person, in order to address managerial, economic, financial and investment issues, as well as those of strategic planning, organization and implementation of entrepreneurial activities, personnel management;

37) oil treatment - a set of technological processes for the treatment of oil, including its gathering, delivery for treatment, inflow of borehole fluid into measuring units, degassing, dehydration, desalination, stabilization, demercaptanization;

38) charitable assistance - assets provided on a non-reimbursable basis:

in the form of sponsorship;

in the form of social support of an individual;

to an individual affected by an emergency;

to a non-commercial organization to support its statutory activity;

to an organization operating in the social sphere to enable it to implement the types of activity specified in paragraph 2 of Article 290 of this Code;

to an organization operating in the social sphere and meeting the requirements specified in paragraph 3 of Article 290 of this Code;

39) participatory interest - share participation of an individual and (or) legal entity in a joint activity, the charter capital of a legal entity, except for joint-stock companies and mutual funds;

40) non-disclosure agreement - a contract (agreement) between a subsoil user and the authorized body for the exploration and use of mineral resources, used as a basis for the disclosure of geological information. A contract (agreement) for acquisition of information is also among such contracts (agreements);

41) heated tobacco product - a type of tobacco product consisting of raw tobacco with or without the addition of tobacco product ingredients, intended for use in a tobacco heating system;

42) marketing services - services associated with research, analysis, planning and forecasting in the sphere of production and circulation of goods, works, services for the purposes of identifying steps to create better economic conditions for the production and circulation of goods, works, services, including characteristics of goods, works, services, elaboration of pricing and advertising strategies;

43) recipient on behalf of the state (state authorized recipient) - a legal entity assigned by the Government of the Republic of Kazakhstan and acting on behalf of the state as a recipient of mineral resources transferred in kind by a subsoil user for the fulfillment of his/her/its tax obligation stipulated by the tax legislation of the Republic of Kazakhstan and (or) production sharing agreements (contracts), a subsoil use contract approved by the President of the Republic of Kazakhstan,which are provided for by Article 722 of this Code and;

44) state revenue authority - a state authority ensuring, within its competence, revenues from taxes and payments to the budget, customs regulation in the Republic of Kazakhstan, exercising powers to prevent, detect, suppress, clear up and investigate administrative offences, which the legislation of the Republic of Kazakhstan places under the jurisdiction of this authority, and also exercising other powers provided by the legislation of the Republic of Kazakhstan;

Note!

Subparagraph 45) is amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (effective from 01.01.2024).

45) mineral raw materials – part of subsoil extracted to the surface (rock, ore raw materials and others) containing mineral (minerals);

46) primary processing (enrichment) of mineral raw materials - a mining activity that includes on-site gathering, crushing or grinding, classifying (sorting), briquetting, agglomeration and enrichment by physicochemical methods (without qualitative changes in the mineral forms of minerals, their aggregate-phase state, crystallochemical structure) and may also include processing technologies that are special types of mining operations (underground gasification and smelting, chemical and bacterial leaching, and mining of alluvial deposits by dredging and hydraulicking);

47) oil operations - works on exploration, production of hydrocarbons, construction and (or) operation of necessary technological and production facilities;

48) operator - a legal entity that is set up or assigned in accordance with the laws of the Republic of Kazakhstan by subsoil users carrying out subsoil use operations within a simple partnership (consortium) under a production sharing agreement (contract);

Note!

Subparagraph 49) is amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (effective from 01.01.2024).

49) mining - the whole scope of works (operations) relating to the extraction of minerals from the subsoil to the surface, including the removal of groundwater, as well as from technogenic mineral formations, including primary processing and temporary storage of mineral raw materials;

Note!

Subparagraph 49-1) is provided to be deleted by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (effective from 01.01.2024)

49-1) recovered reserves - the volume of mineral reserves extracted and written off from the state balance sheet, including actual losses generated in the extraction process;

50) realization - shipment and (or) transfer of goods or other assets, performance of works, rendering of services for the purpose of sale, exchange, gratuitous transfer, transfer of assets under a lease agreement, as well as transfer of pledged goods to a pledgee if a debtor fails to fulfill apledge-secured obligation;

51) minerals - natural mineral formations, hydrocarbons and groundwater contained in the bowels of the earth, as well as natural mineral formations and organic substances containing useful components, the chemical composition and physical properties of which allow their use in the sphere of material production and (or) consumption and (or) for other needs, as they are or after their processing;

52) royalty - payment for:

the right to use mineral resources in the process of extraction of minerals and processing of technogenic formations;

use or the right to use copyrights, software, drawings or models, except for the full or partial realization of property (exclusive) rights to an intellectual property item; use or right to use patents, trademarks or other similar types of rights;

the use of or the right to use industrial equipment, including seagoing vessels leased under bareboat-charter or demise-charter agreements and aircraft leased under demise-charter agreements, as well as commercial or scientific-research equipment; the use of know-how; the use of or the right to use movies, video films, sound recordings or other recording media;

53) tax agent - an individual entrepreneur, a person engaged in private practice, a legal entity, including its structural units, also a non-resident legal entity, which, in accordance with this Code, is obligated to calculate, withhold and transfer taxes withheld from the source of payment, and (or) single payment;

54) tax regime – set of regulations of the tax legislation of the Republic of Kazakhstan applied by a taxpayer to calculate all tax obligations for the payment of taxes and payments to the budget established by this Code;

55) taxes – obligatory monetary payments to the budget legally established by the state on a unilateral basis, except for cases provided for by this Code, made in certain amounts, which are non-returnable and unrequited;

56) tax audit report – an opinion drawn up pursuant to tax audit findings in accordance with the legislation of the Republic of Kazakhstan;

57) taxpayer - a person and (or) a structural unit of a legal entity that is a payer of taxes and payments to the budget;

57-1) taxpayer passport - an information card of a business entity that is not a tax secret and is contained in a barcode generated by a tax authority;

58) personal account of a taxpayer (tax agent) - a document, also in electronic form, for the accounting of calculated, assessed (reduced), transferred and paid (including offset and refunded) amounts of taxes and payments to the budget, social welfare payments, and also amounts of penalties and fines;

59) electronic document of a taxpayer - an electronic document transmitted in the established electronic format, certified with an electronic digital signature of the taxpayer, after its acceptance and confirmation of authenticity;

60) electronic digital signature of a taxpayer - a set of electronic digital symbols created by means of an electronic digital signature and confirming the authenticity of an electronic document, its belonging to the taxpayer and the invariability of its content, obtained in accordance with the legislation of the Republic of Kazakhstan on an electronic document and electronic digital signature;

61) tax debt - the amount of arrears, as well as unpaid amounts of penalties and fines. The tax debt shall not include the amount of penalties reflected in the audit findings report, notice on the horizontal monitoring findings, as well as the amount of fines reflected in the resolution to impose an administrative sanction during an appeal period in the manner prescribed by the legislation of the Republic of Kazakhstan with regard to the disputed amount;

61-1) tax mobile application - a software product installed and launched on a cellular subscriber device and providing access to electronic services for taxpayers;

62) remuneration - all payments:

related to a loan (loan, microloan), with the exception of the received (issued) amount of the loan (loan, microloan), commissions for transferring money by second-tier banks and other payments to a person who is not a lender for the borrower, an interconnected party;

related to a loan (loan, microloan), the right of claim under which is assigned to a legal entity specified in the laws of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan" and " On Microfinance Activities ", with the exception of the received (issued) amount of the loan (loan, microloan ), commissions for money transfer and other payments to a person who is not a lender for the borrower, an interconnected party;

related to the transfer of property under a financial lease agreement, including payments related to such an agreement to a related party, except for:

the cost at which such property was received (transferred);

payments in connection with a change in the amount of lease payments when the coefficient (index) is applied in accordance with the terms of the financial lease agreement;

payments to a person who is not a lessor or a related party for the lessee;

on deposits, except for the amount of the deposit, as well as payments to a person who is not, for the party that accepted the deposit, a depositor, an interrelated party;

related to the accumulative insurance contract, with the exception of the amount of the insured amount, payments to a person who is not an insurer for the policyholder, an interconnected party;

for debt securities in the form of a discount or coupon (taking into account the discount or premium from the cost of the initial offering and (or) the cost of acquisition), payment to the person who is for the person paying the fee, the holder of his/her debt securities, an interrelated party;

on a bill, with the exception of the amount specified in the bill, payments to a person who is not the holder of his/her bills for the drawer, an interconnected party;

for repo transactions - in the form of the difference between the closing price and the opening price of the repo;

on Islamic lease certificates.

For the purposes of this sub-paragraph, remuneration shall be also recognized as remuneration paid under bank account agreements;

63) an accompanying waybill for goods - a document drawn up in electronic form in the cases, in the manner, in the form and within the time limits established by this Code;

64) import of goods - importation of goods into the customs territory of the Eurasian Economic Union in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan, as well as importation of goods into the territory of the Republic of Kazakhstan from the territory of another member state of the Eurasian Economic Union;

65) e-commerce - business activity for the sale of goods to individuals carried out using information technologies through an online store and (or) an online marketplace provided all of the following requirements are met:

transactions for the sale of goods are registered in electronic form;

goods are paid for by bank transfer;

existence of an own service of goods delivery to acustomer (recipient) or contracts with persons providing services for the carriage of goods, performing courier and (or) postal activities;

66) tour operator services - services of an individual entrepreneur and a legal entity having a license for tourism operator activity (tour operator activity) in accordance with the legislation of the Republic of Kazakhstan on tourism activity, for the sale of a tourism product created by them to travel agents and tourists;

67) a person - an individual and a legal entity; an individual - a citizen of the Republic of Kazakhstan, a foreign national or a stateless person; legal entity - an organization established in accordance with the legislation of the Republic of Kazakhstan or a foreign state (non-resident legal entity). For the purposes of this Code, a non-resident legal entity shall mean a company, partnership, organization or other corporate entity established in accordance with the laws of a foreign state, which are considered as independent legal entities, regardless of whether they have the status of a legal entity of a foreign state where they were created;

67-1) registering authorities - state authorities and the State Corporation "Government for Citizens", conducting registration of information and issuance of documents with an identification number;

68) an authorized legal entity - a legal entity assigned by an authorized body to sell the property of a taxpayer (tax agent) and (or) a third party, which has restrictions on the title to it and (or) is pledged in accordance with this Code;

69) authorized state bodies - state bodies of the Republic of Kazakhstan, except for tax authorities and local executive bodies authorized by the Government of the Republic of Kazakhstan to calculate and (or) collect payments to the budget, and also to interact with tax authorities in accordance with this Code within their competence established by the legislation of the Republic of Kazakhstan;

70) authorized body - a state body in charge of ensuring revenues from taxes and payments to the budget;

71) an authorized person - a person who is entrusted with the obligation to submit to the authorized body the information he has on individuals in accordance with Article 26 of this Code within his competence, established by the legislation of the Republic of Kazakhstan;

72) winnings - any types of income in kind and in cash received by taxpayers at contests, competitions (olympiads), festivals, lotteries, drawings, including drawings on deposits and debt securities, as well as income in the form of material benefit obtained through gambling and (or) betting;

72-1) three-component integrated system - an integrated system consisting of a cash register with fixing and transmitting data function, a system (device) for receiving cashless payments, as well as equipment (device) equipped with an automation system for managing trade, rendering services, performing work and accounting of goods, or a hardware-software complex that replaces all three components of an integrated system.

The requirements for three-component integrated system and its accounting, the procedure for its installation and application shall be established by the authorized agency by agreement with the central state authority in the field of state planning, the authorized state authority implementing the state policy in the field of communications, and the National Bank of the Republic of Kazakhstan

73) electronic taxpayer - a taxpayer interacting with tax authorities electronically in accordance with the legislation of the Republic of Kazakhstan on electronic documents and electronic digital signatures;

74) electronic cigarettes - tobacco-free devices that electronically heat a nicotine-containing liquid (in cartridges, tanks and other containers used in electronic cigarettes) and thereby produce aerosol for inhaling;

74-1) nicotine-containing liquid for use in electronic consumption systems - a liquid containing nicotine, or a liquid without nicotine content, intended for use in electronic consumption systems (in cartridges, tanks and other containers), in the heating of which an aerosol (vapor) is formed, intended for inhalation;

75) electronic invoicing system - information system of the authorized body for receiving, processing, registering, transferring and storing invoices issued in electronic form.

2. For the purposes of this Code, individuals and (or) legal entities shall be recognized related parties if their relationships meet at least one of the following requirements:

1) one person is recognized an affiliated person of the other in accordance with the laws of the Republic of Kazakhstan;

2) one person is a major participant in the other;

3) persons are bound by an agreement under which one of them is entitled to influence decisions taken by the other;

4) a legal entity is under control of a major participant or executive officer of the other legal entity;

5) a large shareholder, a major participant or an executive officer of one legal entity is a major shareholder, a major participant or an executive officer of the other legal entity;

6) both legal entities are under control of a third party;

7) a person and his/her affiliated persons jointly own, use, dispose of 10 or more percent of participatory interests of a legal entity or legal entities specified in subparagraphs 2)-6) of this paragraph;

8) an individual is an executive officer of a legal entity specified in subparagraphs 2)-7) of this paragraph, except for non-executive director of a joint-stock company;

9) an individual is a close relative or an in-law relative (brother, sister, parent, son or daughter of the spouse) of a major participant or executive officer of a legal entity.

For the purposes of this paragraph, a large participant shall be understood to mean a participant whose share in the assets of a legal entity, except for joint-stock companies, is equal to or greater than 10 percent.

Control over a legal entity shall be understood to mean a possibility to influence decisions made by this legal entity.

2-1. For the purposes of this Code, the regulations provided for second-tier banks, insurance (reinsurance) companies, insurance brokers shall apply to branches of non-residents banks of the Republic of Kazakhstan, branches of insurance (reinsurance) non-resident companies of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, open on the territory of the Republic of Kazakhstan and operating on the basis of a license from the authorized body for regulation, control and supervision of the financial market and financial organizations.

3. Other special concepts and definitions of the tax legislation of the Republic of Kazakhstan are used in the meanings defined in relevant articles of this Code.

4. The concepts of civil and other branches of the legislation of the Republic of Kazakhstan used in this Code shall have the meanings in which they are used in these branches of the legislation of the Republic of Kazakhstan, unless otherwise provided for by this Code.

Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2019); dated 28.12.2018 No. 210-VI (shall be enforced from 01.01.2019); dated 28.12.2018 No. 211-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.04.2019 No. 241-VI (enforcement see Article 2); No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020); dated 10.12.2020 No 382-VI (enforcement Art 2 ); dated 20.12.2021 No. 85-VII (see Article 2 for the procedure of enactment); dated 21.12.2022 No. 165-VII (enforcement, see Art 4).