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

Article 57. General Provisions

The provisions of this chapter apply, if a taxpayer adopts a resolution on reorganization through merger, incorporation, separation, liquidation or termination of activity.
Article 58. Fulfillment of tax obligations of a legal entity in liquidation, as well as in the event of termination of activity in the Republic of Kazakhstan of a structural unit, permanent establishment of a non-resident legal entity

1. A resident legal entity, within three business days from the day of adoption of a resolution on liquidation, shall notify thereof the tax authority at the place of its location in writing.

2. Within three business days from the day of approval of an interim liquidation balance sheet, a legal entity in liquidation shall submit to the tax authority at the place of its location all of the following documents:

1) a tax application for a tax audit;

2) liquidation tax returns.

3. Liquidation tax returns shall be drawn up by types of taxes, payments to the budget and social welfare payments for which a legal entity in liquidation is a payer and (or) a tax agent, for the period from the beginning of a taxable period, within which a tax application for a tax audit was submitted, until the date of submission of such an application.

In the event that next scheduled tax returns are due for filing after liquidation tax returns, such next scheduled tax returns shall be filed on or before the date of filing liquidation tax returns.

4. A legal entity in liquidation shall pay taxes, payments to the budget and social welfare payments entered into liquidation tax returns, within ten calendar days from the day of filing liquidation tax returns witha tax authority.

In the event that the payment of taxes, payments to the budget and social welfare payments entered into tax returns filed before liquidation tax returns is due after the expiration of the period specified in part one of this paragraph, the payment (transfer) is made within ten calendar days from the date of filing liquidation tax returns with a tax authority.

5. Tax authorities shall initiate a tax audit within twenty business days from the receipt of a tax application of a legal entity in liquidation by a tax authority.

6. Tax debt of a legal entity in liquidation arising, among other things, on the grounds specified in paragraphs 4 and 11 of this article, shall be paid at its expense, including proceeds from the sale of its assets, in order of priority established by the laws of the Republic of Kazakhstan. Concurrently, the tax debt of structural units, permanent establishments, structural units of a non-resident legal entity shall be paid in case of joint fulfillment of tax obligations by such a non-resident legal entity with a group of permanent establishments, structural units of legal entities through a permanent establishment, a structural unit terminating activity.

7. If the assets of a legal entity in liquidation are not sufficient to fully pay its tax debt, the remaining part of the tax debt is paid by the founders (participants) of the legal entity in liquidation in cases established by laws of the Republic of Kazakhstan.

8. If a legal entity in liquidation has amounts of taxes, payments to the budget and penalties paid in excess, the latter are subject to offset against the tax debt of the legal entity in liquidation in accordance with the procedure set forth in Article 102 of this Code.

In the event that a legal entity in liquidation has amounts of taxes, payments to the budget and penalties paid erroneously, these amounts are subject to offset in accordance with the procedure set forth in Article 103 of this Code.

9. If, before the date of its VAT deregistration, a legal entity in liquidation has the amount of VAT to be offset in excess of the amount of assessed tax, which is refundable in accordance with Chapter 49 of this Code, the excess shall be returned to the legal entity in liquidation in accordance with the procedure set forth in Article 104 of this Code.

10. If a legal entity in liquidation has no tax debts,:

1) erroneously paid amounts of taxes, payments to the budget and penalties are subject to return to this legal entity in accordance with the procedure set forth in Article 103 of this Code;

2) amounts of taxes, payments to the budget and penalties paid in excess are subject to return to this legal entity in accordance with the procedure set forth in Article 101 of this Code;

3) paid amounts of fines are subject to return to this legal entity on the grounds and in accordance with the procedure set forth in Article 106 of this Code;

4) amounts of customs duties, taxes, customs charges and penalties levied by customs authorities paid to the budget in excess (erroneously) are subject to return to this legal entity in accordance with the procedure established by the customs legislation of the Republic of Kazakhstan.

11. If an obligation arises to calculate and pay taxes and payments to the budget, social welfare payments for the period fromthe date of filing liquidation tax returns until that of completion of a liquidation tax audit, a legal entity in liquidation is obliged to fulfill such obligations pursuant to the notice of a tax authority specified in subparagraph 3) paragraph 2 of Article 114 of this Code.

12. In case of generation of income in the form of dividends of individuals and non-residents subject to taxation at the source of payment during the period from the day after the dayon which a liquidation tax audit was completed until that of approval of a liquidation balance sheet, a legal entity in liquidation shall file with the tax authority at its location additional tax returns along with liquidation tax returns on such a tax obligation and fulfill it in full.

13. After the completion of a tax audit and performance of the provisions specified in paragraph 12 of this article, a legal entity in liquidation shall submit a liquidation balance sheet to the tax authority at its location.

A legal entity in liquidation submits a liquidation balance sheet within three business days from the completion of a tax audit and performance of the provisions specified in paragraph 12 of this article, provided all of the following requirements are met:

1) absence of tax debt, arrears in social welfare payments;

2) absence ofamounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously);

3) absence of VAT amount to be offset exceeding the assessed tax amount subject to refund in accordance with Chapter 49 of this Code;

4) absence of unfulfilled tax application for offsetting and (or) refunding amounts of customs duties, taxes, customs charges and penalties levied by customs authorities paid in excess (erroneously).

In the event of tax debts, arrears in social welfare payments, amounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously) and (or) VAT amount to be offset exceeding the assessed tax amount subject to refund in accordance with Chapter 49 of this Code, a legal entity in liquidation shall submit a liquidation balance sheet within three business days from the date, whichever comes last:

1) of the payment of tax debt, arrears in social welfare payments;

2) of refund of amounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously);

3) of refund of VAT amount to be offset exceeding the assessed tax amount subject to refund in accordance with Chapter 49 of this Code;

4) of refund of amounts of customs duties, taxes, customs charges and penalties levied by customs authorities paid in excess (erroneously).

14. A tax obligation of the structural unit of a non-resident legal entity terminating its activity in the Republic of Kazakhstan, as well as the permanent establishment of a non-resident legal entity shall be fulfilled in accordance with the procedure set forth in this article.

15. The provisions of this article shall not apply to resident legal entities in liquidation in case they choose to comply with special considerations in fulfilling tax obligations set forth inArticles 59 or 60 of this Code.