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

Article 59. Features of fulfilling tax obligations by certain categories of resident legal entities in liquidation

1. This article sets forth special considerations in the fulfillment of a tax obligation of a resident legal entity in liquidation meeting all ofthe following requirements:

1) is a value added tax payer who does not carry out financial and economic activities from the date of registration for value added tax, or is not a value added tax payer;

2) it does not apply a special tax regime to producers of agricultural products, aquaculture products (fish farming) and agricultural cooperatives;

3) itwas not reorganized or is not the legal successor of a reorganized legal entity.

The provision of this subparagraph does not apply to legal entities reorganized through transformation;

4) is not included in the list of selective tax audits based on the results of measures of the risk assessment system or is not included in the semi-annual schedule of tax audits conducted in a special order based on risk assessment, as well as periodic tax audits based on risk assessment;

5) it is not registered as a taxpayer performing certain types of activities.

This article applies to resident legal entities meeting the requirements specified in this paragraph during the limitation period established by Article 48 of this Code. The provisions of this paragraph also apply to legal entities, which life span is less than the limitation period set forth by Article 48 of this Code.

2. In the event of adopting a resolution to liquidate, a legal entity submits to the tax authority at its location all of the following documents:

1) a tax application for the termination of its activity;

2) liquidation tax returns;

3) an interim liquidation balance sheet;

4) a tax application for deregistering a cash register in accordance with the procedure set forth in Article 169 of this Code.

A legal entity in liquidation submits the document specified in subparagraph 4) of part one of this paragraph in the event that the cash register is registered with a tax authority.

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 termination of activity 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 with a 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 day of filing liquidation tax returns with a tax authority.

5. A tax authority, within three business days from the receipt of a tax application for terminating activity of a legal entity in liquidation, shall submit a request for the period during which no tax audit was conducted with respect to the legal entity, within the limitation period set forth in Article 48 of this Code:

1) to authorized state bodies - concerning information on transactions with assets subject to state registration, made by a legal entity terminating its activity, as well as its assets as of the date of receipt of the tax authority’s request;

2) to second-tier banks and (or) organizations carrying out certain types of banking operations - concerning information on balances and movements of money in bank accounts of a legal entity terminating its activity as of the date of receipt of the tax authority’s request.

Information upon the requests of a tax authority specified in this paragraph shall be submitted within twenty business days from their receipt, unless otherwise specified by subparagraph 13) of part one of Article 24 of this Code.

6. A tax authority, within ten business days from the day of receipt of all the information provided for in paragraph 5 of this article, shall conduct an in-house audit and draw up an opinion in accordance with the procedure set forth in this Code.

An opinion reflects results of an in-house audit and a situation with settlements in respect of taxes, payments to the budget and social welfare payments.

An opinion shall be drawn up at least in two copies and signed by tax officials. One copy of the opinion is delivered, within three business days after its signing, to a legal entity in liquidation against signature or sent to it by registered mail with return receipt.

In case a postal or any other communication organization returns an opinion sent by a tax authority to a taxpayer (tax agent) in liquidation by registered mail with return receipt, the date of delivery of such an opinion shall be that of the tax audit, involving witnesses on the grounds and in accordance with the procedure set forth in this Code.

7. In case an in-house audit reveals violations, a legal entity in liquidation, within five business days from the receipt of an opinion, shall be delivered a notice of elimination of violations revealed in the course of the in-house audit in accordance with the procedure set forth inChapter 12 of this Code.

A legal entity in liquidation executes a notice of the elimination of violations revealed in the course of an in-house audit in accordance with the procedure set forth in Article 96 of this Code.

In case of a failure to execute a notice and (or) tax authorities’ disagreement with explanations provided by a taxpayer, a tax audit shall be conducted with respect to a legal entity in liquidation. In this case, the tax audit must begin within ten business days after expiration of the deadline set for the execution of such a notice and (or) after obtaining an explanation of disagreement concerning revealed violations.

8. Tax debt of a legal entity in liquidation arising, among other things, on the grounds specified in paragraph 4 of this article, shall be paid at the expense of this person, including proceeds from the sale of its assets, in order of priority established by the laws of the Republic of Kazakhstan.

9. 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.

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. 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 beginning on the day a legal entity person receives an opinion on an in-house audit 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.

12. 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 receipt of an opinion on the results of an in-house audit if there is no tax debt, arrears in social welfare payments and provisions specified in paragraph 11 of this article are observed.

13. In case an in-house audit reveals violations with respect to tax debt, arrears in social welfare payments, a legal entity in liquidation submits a liquidation balance sheet within three business days from the payment of the tax debt, arrears in social welfare payments, provided that the violations revealed in the course of the in-house audit are eliminated, and provisions specified in paragraph 11 of this article are observed.

14. After submission of a liquidation balance sheet specified in Paragraph 12 of this Article and observance of provisions specified in Paragraph 13 of this Article, a tax authority shall send to the registering authority conducting state registration, reregistration of legal entities, state registration of termination of activities of legal entities, accounting registration, reregistration, deregistration of structural units, information on the absence (existence) of debts, the record of which is kept by tax authorities with regard to a legal entity in liquidation in accordance with the procedure and within the time limits established by Article 100 of this Code.

Footnote. Article 59 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.04.2019 No. 241-VI (shall be enforced from 01.07.2019); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).



Article 60. Features of the fulfillment of tax obligations by certain categories of resident legal entities in liquidation and individual entrepreneurs terminating activity pursuant to a tax audit report

1. This article sets forth special considerations in the fulfillment of a tax obligation by certain categories of resident legal entities in liquidation and individual entrepreneurs terminating their activities,meeting all of the following requirements:

1) total amount of the total annual income, with account of adjustments, of a legal entity in liquidation and an individual entrepreneur terminating activity, for the limitation period set forth in Article 48 of this Code does not exceed 150000 times the monthly calculated index established by the law on the republican budget and effective as of January 1 of a relevant financial year;

2) they have a tax audit report on taxes drawn up notearlier than twenty calendar days before the date of submission of a tax application for terminating activity to a tax authority;

3) they are or were not registered as a taxpayer performing certain types of activities during the limitation period set forth in Article 48 of this Code.

At the same time, if, pursuant to a tax audit report, obligations arise for calculating and paying taxes and payments to the budget, for calculating, withholding, transferring social welfare payments, such obligations are subject to fulfillment by a legal entity in liquidation or an individual entrepreneur terminating activity within ten calendar days from the day after the day on which the tax audit report in question was delivered to a taxpayer.

2. A resident legal entity, in the event of a resolution to liquidate, an individual entrepreneur in case of a decision to terminate an activity, submit to the local tax authority, all of the following documents:

1) a tax application for termination of activities;

2) liquidation tax returns;

3) audit opinion on taxes;

4) a tax application for deregistering a cash register in accordance with the procedure set forth by Article 169 of this Code.

The document specified in subparagraph 4) of part one of this paragraph shall be submitted by the legal entity in liquidation or individual entrepreneur terminating activity in the event that the cash register is registered with the tax authority.

3. Liquidation tax returns are drawn up by types of taxes, payments to the budget and social welfare payments for which the legal entity in liquidation or individual entrepreneur terminating activities is a payer and (or) tax agent for the period from the beginning of the taxable period in which the tax application forthe termination of activities is 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 or individual entrepreneur terminating activity shall pay taxes, payments to the budget and transfer social welfare payments entered into liquidation tax returns within ten calendar days from the day of filing liquidation tax returns witha tax authority.

If the payment of taxes, payments to the budget and transfer of social welfare payments entered into tax returns filed before liquidation tax returns are 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 day of filing liquidation tax returns witha tax authority.

5. If a legal entity in liquidation or an individual entrepreneur terminating activity has no tax debt:

1) erroneously paid amounts of taxes, payments to the budget and penalties are subject to return to this taxpayer 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 taxpayer in accordance with the procedure set forth in Article 101 of this Code;

3) paid amounts of fines are subject to return to this taxpayer 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.

6. A tax authority, within ten business days from the day of receipt of all the documents provided for in paragraph 2 of this article, shall conduct an in-house audit in accordance with the procedure set forth in Article 95 of this Code.

If tax authorities reveal violations in the course of an in-house audit, a legal entity in liquidation or individual entrepreneur terminating activity shall be delivered a notice of the elimination of violations in accordance with the procedure set forth in Chapter 12 of this Code.

The execution of the notice of the elimination of violations revealed in the course of an in-house audit is carried out by a legal entity in liquidation or an individual entrepreneur terminating activity in accordance with the procedure set forth in Article 96 of this Code.

Payment (transfer) of tax debts, arrears in social welfare payments is made by the taxpayer within ten calendar days from the execution of the notice of elimination of violations revealed by an in-house audit.

7. In cases of failure to execute a notice and (or) tax authorities’ disagreement with explanations provided by a taxpayer, a tax authority shall conduct a tax audit in respect of a legal entity in liquidation or an individual entrepreneur terminating its activity with regard to facts and circumstances revealed in respectof such a taxpayer, which served as a ground for scheduling this audit.

8. 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 day on which an in-house 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 completely.

9. In cases where the provisions set forth in paragraphs 4, 5, 6 and 8 of this article are observed and there are no tax debts, arrears in social welfare payments, as well as in case of elimination of violations revealed by an in-house audit conducted by a tax authority, a legal entity in liquidation submits a liquidation balance sheet to the tax authority at its location.

A legal entity in liquidation submits a liquidation balance sheet within fifteen business days from the receipt of documents specified in paragraph 2 of this article by a tax authority, provided that there is no tax debt, arrears in social welfare payments and provisions set forth in paragraph 8 of this article are observed.

In case an in-house audit reveals violations with respect to tax debt, arrears in social welfare payments, a legal entity in liquidation submits a liquidation balance sheet within three business days from the payment of the tax debt, arrears in social welfare payments, provided that the violations revealed in the course of the in-house audit are eliminated, and provisions specified in paragraph 11 of this article are observed.

10. After fulfillment of provisions specified in Paragraph 9 of this Article, a tax authority shall send to the registering authority conducting state registration, reregistration of legal entities, state registration of termination of activities of legal entities, accounting registration, reregistration, deregistration of structural units (hereinafter referred to as judicial bodies), information on the absence (existence) of debts the record of which is kept by tax authorities with regard to a legal entity in liquidation in accordance with the procedure and within the time limits established by Article 100 of this Code.

11. A tax obligation of an individual entrepreneur that terminated its activity is deemed fulfilled after an in-house audit, given the absence or paymentof tax debt, arrears in social welfare payments, and complete elimination of the violations revealed by the in-house audit.

12. The date of deregistration of an individual entrepreneur by a tax authority is that of fulfillment of the tax obligation in accordance with paragraph 11 of this article.

13. A tax authority shall, within three business days from the date specified in paragraph 12 of this article, deregister an individual entrepreneur.

Information on deregistration of an individual entrepreneur is placed on the website of the authorized body.

14. A tax authority shall refuse to deregister an individual entrepreneur within three business days after expiration of the deadline set by paragraph 6 of this article for the payment (transfer) of tax debt, arrears in social welfare payments.

A ground to deregister an individual entrepreneur is also an individual entrepreneur’s failure to observe the provisions set forth in this article.

Footnote. Article 60 as amended by the Law of the Republic of Kazakhstan dated 02.04.2019 No. 241-VI (shall be enforced from 01.07.2019).