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

Article 191. Requirements to the tax accounting policy

1. The tax accounting policy shall stipulate the following provisions:

1) the forms and procedure for drawing up tax registers developed by the taxpayer (tax agent) independently;

2) the names of the positions of persons responsible for compliance with the tax accounting policy;

3) the procedure for maintaining separate tax accounting records in cases when this Code provides for an obligation to maintain such accounting;

4) the procedure for maintaining separate tax accounting records in case of subsoil use operations;

5) the methods chosen by the taxpayer to include expenses into deductibles for the purpose of calculating corporate income tax, as well as for offsetting VAT;

6) the policy for identifying hedged risks, hedged items and hedging instruments used with respect to them, the method of assessing the degree of hedge effectiveness in case of hedging transactions;

7) the policy for recording income on Islamic securities in case of transactions with Islamic securities;

8) depreciation rates for each subgroup, a group of fixed assets with account of the provisions of paragraph 2 of Article 271 of this Code;

9) in case of issuance of invoices in accordance with this Code by structural units of a resident legal entity that is a VAT payer, the code of each of these structural units used in the numbering of invoices to identify such a structural unit;

10) the maximum number of digits used in the numbering of invoices being issued.

The provisions of subparagraphs 4), 8), 9) and 10) of part one of this paragraph shall not apply to persons that are not responsible for maintaining accounting records and drawing up financial statements in accordance with the legislation of the Republic of Kazakhstan.

2. The tax accounting policy for joint activities is approved by parties to a joint activity agreement in accordance with the procedure and on the grounds established by this Code.

3. When carrying out a subsoil use activity within the framework of a simple partnership (consortium) under a production sharing agreement (contract), the tax accounting policy, along with the requirements of paragraph 1 of this article, shall include the method of fulfilling a tax obligation for each type of taxes and payments to the budget provided for by the tax legislation of the Republic of Kazakhstan by partners of a simple partnership and (or) operator, which is selected in accordance with paragraph 3 of Article 722 of this Code.

4. The following provisions of the tax accounting policy shall be in effect for at least one calendar year:

the procedure for maintaining separate tax accounting records;

the methods chosen by the taxpayer to include expenses into deductibles for the purposes of calculating corporate income tax.

The methods chosen by the taxpayer for offsetting VAT shall be valid for:

at least one taxable period established for the purposes of VAT calculation - in the case provided for by subparagraph 6) of paragraph 2 of Article 407 and (or) paragraph 3 of Article 407 of this Code;

at least one calendar year - in other cases.

5. The taxpayer (tax agent) alters and (or) supplements the tax accounting policy either by:

1) approval of a new tax accounting policy or its new section, developed in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

2) introducing amendments and (or) additions to the current tax accounting policy or to a section of the current accounting policy developed in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.

6. A taxpayer (tax agent) is not allowed to introduce amendments and (or) additions to the tax accounting policy:

1) for an audited taxable period - during the period of comprehensive and thematic audits;

2) for a taxable period complained of - during the period of filing and consideration of a complaint about an audit findings report, taking into account the renewed period for filing a complaint;

3) for taxable periods with respect to which a tax audit was conducted.

7. A subsoil user is obliged to indicate a decision on application of the provisions of Article 259 of this Code in his/her/its tax accounting policy.

Footnote. Article 191 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018).