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

Article 67. Simplified procedure for the termination of activities of certain categories of individual entrepreneurs

1. Activities of certain categories of individual entrepreneurs shall be terminated under a simplified procedure without conducting an in-house audit, established by Article 95 of this Code, on the grounds of:

1) a taxpayer’s tax application for terminating activity;

2) written consent in the tax application for suspending (extending, resuming) the filing of tax returns or the calculation of the cost of a patent, in the cases provided for by paragraph 5 of this article;

3) consent indicated in a special mobile application when switching to a special tax regime with its use, in the cases provided for in paragraph 5 of this article.

2. A simplified procedure for the termination of activity shall apply to individual entrepreneurs who, at the time of filing a tax application for terminating activity, meet all of the following requirements:

1) they are not registered as VAT payers;

2) they do not carry out their activity in the form of a joint venture;

3) they do not carry out certain types of activities specified in paragraph 1 of Article 88 of this Code;

4) are not in the list of selective tax audits based on the results of activities of the risk assessment system or are not 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 degree assessment;

5) they have no tax debts, arrears in social welfare payments;

6) not having a high level of risk in the risk management system.

This article applies to individual entrepreneurs meeting the requirements specified in subparagraphs 1), 2), 3) and 4) of part one of this paragraph, within the limitation period set by Article 48 of this Code until the date of submission of a tax application for terminating activities or the emergence of cases set forth in paragraph 5 of this article.

3. In case of termination of activities under a simplified procedure on the grounds provided for by subparagraph 1) of paragraph 1 of this article, an individual entrepreneur shall submit to a tax authority at his/her location all of the following documents:

1) a tax application for terminating activity;

2) liquidation tax returns;

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

Liquidation tax returns are drawn up by types of taxes, payments to the budget and social welfare payments for which an individual entrepreneur terminating activity is a payer and (or) a tax agent, for the period from the beginning of a taxable period, within which a tax application for terminating 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. In case of termination of activities under a simplified procedure on the grounds provided for by subparagraph 1) of paragraph 1 of this article, payment of taxes, payments to the budget and social welfare payments entered into liquidation tax returns shall be made within ten calendar days from the date of filing liquidation tax returns.

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.

A tax authority shall, within three business days from the date of fulfillment of a tax obligation in accordance with this paragraph, deregisteran individual entrepreneur and place information on the deregistration of the individual entrepreneur on the website of the authorized body.

A tax authority refuses to deregister an individual entrepreneur and places information on the website of the authorized body, in case of:

1) a failure to observe conditions provided for by paragraph 2 of this article and (or) failure to meet the requirements of paragraph 3 of this article within three business days from the date of submitting a tax application for terminating activity;

2) a failure to meet the requirements provided for by this paragraph within three business days from a deadline set for the payment of taxes, payments to the budget and social welfare payments.

5. Individual entrepreneurs shall terminate activities under a simplified procedure on the grounds provided for in subparagraphs 2) and 3) of paragraph 1 of this article in the following cases:

1) apply a patent-based special tax regime and failed to submit next scheduled calculation of the cost of a patent within sixty calendar days from the expiration of the patent validity or the end of the period of suspension of activity;

1-1) applying a special tax regime with the use of special mobile application and not reflecting income in such an application within sixty calendar days from the date of the last month for which individual income tax and social payments were calculated and paid;

within three working days from the date of expiration of one of the deadlines established by subparagraphs 1), 1-1) and 2) part one of this paragraph.

Information on deregistration of an individual entrepreneur in the manner specified in this paragraph shall be posted on the Internet resource of the authorized body within three working days from the date of expiration of one of the deadlines established by subparagraphs 1), 1-1) and 2) of part one of this paragraph.

2) suspended the filing of tax returns and failed to file tax returns after the end of the period of suspension of activity within sixty calendar days from the deadline for filing tax returns established by this Code.

A tax authority at the location of an individual entrepreneur deregisters him/her as an individual entrepreneur in the cases specified in this paragraph,:

if conditions provided for by paragraph 2 of this article are observed;

if there is no cash register registered with a tax authority;

within three business days from the expiration of one of the deadlines set forthin subparagraphs 1) and 2) of part one of this paragraph.

Information on deregistration of an individual entrepreneur in accordance with the procedure specified in this paragraph shall be placed on the website of the authorized body within three business days from the date of expiration of one of the deadlines set forth in subparagraphs 1) and 2) of part one of this paragraph.

6. A taxpayer shall be deemed deregistered as an individual entrepreneur from the day following the day:

of payment of taxes, payments to the budget and social welfare payments upon termination of activity under a simplified procedure on the grounds provided for by subparagraph 1) of paragraph 1 of this article;

of expiration of the most recent patent (except for cases of suspension of activity), in case of termination of activity under a simplified procedure on the grounds provided for by subparagraph 2) of paragraph 1 of this article;

the end of the period of suspension of activities specified in the tax application for the suspension (extension, resumption) of filing tax returns in case of termination of activities in a simplified order on the grounds provided for in subparagraphs 2) and 3) of paragraph 1 of this article;

expiry of the last month for which the individual income tax and social payments were calculated and paid (except for cases of suspension of activities) upon termination of activities in a simplified procedure on the grounds provided for in subparagraph 3) of paragraph 1 and subparagraph 1-1) of part one of paragraph 5 of this article.

7. If a tax authority reveals violations within the limitation period after the termination of activity of an individual entrepreneur in accordance with this article, the calculation of tax obligations for taxes, payments to the budget and social welfare payments on the activity, carried out during the period of registration as an individual entrepreneur, shall be made by an individual in accordance with the tax legislation of the Republic of Kazakhstan effective as of the dayon which obligations for their payment arose.

Footnote. Article 67 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 24.06. 2021 No. 53-VII (effective from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).

SECTION 3. TAX CONTROL AND OTHER FORMS OF TAX ADMINISTRATION

Chapter 8. GENERAL PROVISIONS