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

Article 66. Features of the fulfillment of tax obligations by certain categories of individual entrepreneurs and private practice owners terminating their activities

1. This article sets forth special considerations in the fulfillment of a tax obligation by individual entrepreneurs and private practice owners terminating their activities, meeting all of the following requirements:

1) are value added tax payers who do not carry out financial and economic activities from the date of registration for value added tax, or are not payers of value added tax;

2) are not included in the list of selective tax audits based on the results of measures of the risk assessment system or are 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.

This article applies to individual entrepreneurs or private practice owners meeting the requirements specified in this paragraph during the limitation period set forth in Article 48 of this Code. The provisions of this paragraph also apply to individual entrepreneurs, whose period of activity from the date of their registration as individual entrepreneurs is less than the limitation period set forth in Article 48 of this Code.

2. If an individual entrepreneur or a private practice owner resolves to terminate his/her activity, he/she shall submit to a tax authority at his/her location all of the following documents:

1) a tax application for terminating activity;

2) notification of the beginning or termination of activities as a taxpayer carrying out certain types of activities in the form approved by the authorized body in the field of permits and notices, given such recording;

3) liquidation tax returns;

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

An individual entrepreneur terminating his/her activity 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 are drawn up by types of taxes, payments to the budget and social welfare payments for which an individual entrepreneur or a private practice owner 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. Payment of taxes, payments to the budget and social welfare payments entered into liquidation tax returns shall be made by an individual entrepreneur or a private practice owner within ten calendar days from the date 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 deadline 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. A tax authority, within three business days from the receipt of a tax application for terminating activity of an individual entrepreneur or a private practice owner, shall submit a request:

1) to authorized state bodies - concerning information on transactions with assets subject to state registration, made by an individual entrepreneur or a private practice owner terminating activity, as well as their assets as of the date of receipt of their tax application for terminating activity;

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 an individual entrepreneur or a private practice owner terminating activity as of the date of receipt of their tax application for terminating activity.

Information on transactions provided for by subparagraph 1) of part one of this paragraph, as well as on the movement of money in bank accounts, shall be submitted for the period, within which no tax audit was conducted with respect to an individual entrepreneur or a private practice owner terminating activities within the limitation period set forth in Article 48 of this Code, until the day a tax authority receives a tax application for terminating activity.

6. Information upon the requests of a tax authority specified in paragraph 5 of this article 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.

7. A tax authority, within ten business days from the date 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 an individual entrepreneur or a private practice owner against signature or sent to him/her by registered mail with return receipt.

In case a postal or any other communications organization returns an opinion sent by a tax authority to an individual entrepreneur or a private practice owner by registered mail with return receipt, the date of delivery of such an opinion shall be that of the tax audit, on the grounds and in accordance with the procedure set forth in this Code.

8. In case an in-house audit reveals violations, an individual entrepreneur or a private practice owner, 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 in Chapter 12 of this Code.

An individual entrepreneur or a private practice owner 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 an individual entrepreneur or a private practice owner. In this case, the tax audit must begin within ten business days after the deadline, set for the execution of such a notice, expires and (or) after obtaining an explanation of disagreement concerning revealed violations.

9. Tax debt of an individual entrepreneur or a private practice owner terminating activities shall be paid at the expense of the said individual entrepreneur or private practice owner, including proceeds from the sale of his/her assets, in order of priority established by the laws of the Republic of Kazakhstan.

10. If an individual entrepreneur or a private practice owner terminating activity has amounts of taxes, payments to the budget and penalties paid in excess, the said amounts are to be offset against the payment of tax debts of this individual entrepreneur or private practice owner in accordance with the procedure set forth in Article 102 of this Code.

If an individual entrepreneur or a private practice owner terminating activity has erroneously paid amounts of taxes, payments to the budget and penalties, the said amounts are to be offset in accordance with the procedure set forth in Article 103 of this Code.

11. If an individual entrepreneur or a private practice owner 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 shall be returned to this taxpayer 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 the customs authorities erroneously paid to the budget are returned to this taxpayer in accordance with the procedure established by customs legislation Republic of Kazakhstan.

12. Tax debt, arrears in social welfare payments are paid by a taxpayer within ten calendar days from the day an opinion was drawn up or a notice of elimination of violations revealed in the course of the in-house audit was executed.

13. An individual entrepreneur or a private practice owner shall be deemed deregistered on the day:

1) an opinion is drawn up, in case there are no violations revealed in the course of an in-house audit and no tax debts, arrears in social payments;

2) a notice of elimination of violations revealed in the course of an in-house audit, in case such violations exist and there are no tax debts, arrears in social welfare payments;

3) tax debt, arrears in social welfare payments are paid, in case there are tax debts and violations revealed in the course of an in-house audit are eliminated completely.

Information on deregistration of an individual entrepreneur or a private practice owner in accordance with the procedure set forth in this paragraph shall be placed on the website of the authorized body within three business days from the day of deregistration of such taxpayers.

A ground to refuse deregistration of an individual entrepreneur or a private practice owner is the existence of tax debt, arrears in social welfare payments not paid within the time limits setforth in paragraph 12 of this article.

Footnote. Article 66 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 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).