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

participatory interest and (or) shares transferred into trust management;

property transferred to the trust management of the National Bank of the Republic of Kazakhstan, except for the assets of the National Fund of the Republic of Kazakhstan;

assets transferred into trust management under an act on the establishment of trust management of assets;

income received by a legal entity, an individual entrepreneur for trust operations from a second-tier bank;

drawing up and submitting a declaration in accordance with the Constitutional Law of the Republic of Kazakhstan “On Elections in the Republic of Kazakhstan”, the Penal Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan “On Combating Corruption”, if the founder of trust management is an individual entrusted with this duty.

For the purposes of this Code, an act on the establishment of trust management of assets means a document giving rise to the emergence of trust management of assets, the trust manager of which is a non-resident individual or a non-resident legal entity not operating in the Republic of Kazakhstan;

2) by a trust manager - in other cases. At the same time, a tax obligation for income received by an individual, except for an individual entrepreneur and a non-resident legal entity operating in the Republic of Kazakhstan without establishing a permanent establishment, from trust operations performed by a second-tier bank that is a tax agent, is fulfilled by this second-tier bank by way of performing duties of a tax agent.

A trust manager fulfills tax obligations arising on the date of:

state registration of the right to trust management of assets - in the event that this right is subject to state registration in accordance with the legislation of the Republic of Kazakhstan;

conclusion of a trust management agreement or a document confirming the occurrence of another case of the emergence of trust management of assets - in the event that the right to trust management is not subject to state registration in accordance with the legislation of the Republic of Kazakhstan.

2. Fulfillment of an obligation arising for VAT on trust management activity shall be effected by a trust manager in accordance with the procedure set forth inSection 10 and Articles 82 and 83 of this Code.

3. Fulfillment of an obligation arising for taxes not specified in paragraphs 1 and 2 of this article and payments to the budget shall be effected by a person recognized as a payer of such a tax, a payment to the budget in accordance with this Code, unless otherwise provided for by Article 41 of this Code.

4. A trust manager that is a resident individual must register with a tax authority as an individual entrepreneur in accordance with the procedure set forth in Article 79 of this Code, unless assets received for trust management are participatory interest and shares.

5. The provisions of this Article and Articles 41-45 of this Code shall not apply to tax obligations arising as a result of the establishment, performance and (or) termination of trust management of the assets of an investment fund by a management company in accordance with the legislation of the Republic of Kazakhstan on investment and venture funds.

Footnote. Article 40 as amended by the Law of the Republic of Kazakhstan dated 04.07.2018 No. 174-VІ (shall be enforced upon expiry of ten calendar days after its first official publication); dated 10.12.2020 No. 382-VI (effective from 01.01.2021).