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

Article 19. The rights and obligations of tax authorities

1. Tax authorities are entitled:

1) within their competence, to develop and approve regulatory legal acts provided for by this Code;

2) to carry out international cooperation on taxation issues, including the exchange of information, with authorized bodies of foreign states;

3) in the course of tax control, to require of a taxpayer (tax agent) thegranting rightof access to software data for the automation of book-keeping and tax accounting and (or) an information system containing data on primary accounting documents, accounting registers, information on taxable and (or) tax-related items, where a taxpayer (tax agent) uses such software and (or) information system, except for the access to software data and (or) information system of second-tier banks and organizations carrying out certain types of banking operations, which contain information constituting a bank secret in accordance with the Laws of the Republic of Kazakhstan.

The exception set forth in part one of this Subparagraph shall not apply to tax authorities’ requirements presented in the course of implementation of horizontal monitoring and a tax audit in respect of income and expenses;

4) to require of a taxpayer (tax agent):

the submission of documents confirming the accuracy of calculation and duly payment (withholding and transfer) of taxes and payments to the budget, complete and timely calculation, withholding and transfer of social welfare payments;

written explanations about tax forms drawn up by a taxpayer (tax agent), as well as financial statements of a taxpayer (tax agent), including consolidated financial statements of a resident taxpayer (tax agent), as well as financial statements of its subsidiaries, located outside the Republic of Kazakhstan, together with an audit report in the event that the laws of the Republic of Kazakhstan prescribe a mandatory audit for such a person;

5) to receive information, the submission of which shall be provided by Subparagraphs 1), 2), 3) and 6) of Article 24 and Article 27 of this Code, from second-tier banks and organizations carrying out certain types of banking operations, custodians, central depository, brokers and (or) dealers entitled to maintain clients’ accounts as nominee holders of securities, investment portfolio managers, as well as insurance organizations;

6) to receive from second-tier banks and organizations carrying out certain types of banking operations information on the existence and numbers of bank accounts, on the balances and movements of money in these accounts, in compliance with the requirements set by the laws of the Republic of Kazakhstan for disclosure of information constituting commercial, banking and other law-protected secrets, with regard to persons specified in subparagraph 13) of Article 24 of this Code;

7) in the course of a tax audit, in accordance with the procedure prescribed by the Code on Administrative Offences of the Republic of Kazakhstan, to seize documents of a taxpayer (tax agent) indicative of administrative offences;

8) in the course of a tax audit of an individual, who, in accordance with this Code, is under the obligation to submit a declaration of assets and liabilities, to verify the accuracy of information about the property reflected in the said declaration, subject to state or other registration, as well as property, on which rights and (or) transactions are subject to state or other registration;

9) to involve specialists in tax audits;

10) to bring to court claims for declaring transactions invalid, for liquidation of a legal entity on the grounds set forth in subparagraphs 1), 2), 3) and 4) of paragraph 2 of Article 49 of the Civil Code of the Republic of Kazakhstan, and also other claims within their competence and consistent with the tasks set by the legislation of the Republic of Kazakhstan.

2. Tax authorities shall:

1) observe the rights of a taxpayer (tax agent);

2) protect interests of the state;

3) provide a taxpayer (tax agent) with information on current taxes and payments to the budget, amendments to the tax legislation of the Republic of Kazakhstan, clarify issues concerning the application of the tax legislation of the Republic of Kazakhstan;

4) within their competence, explain and comment on the commencement, fulfillment and termination of a tax obligation.

For taxpayers who are on horizontal monitoring, the explanations and comments provided by part one of this Subparagraph shall be carried out by the authorized agency. At the same time, for such taxpayers, the authorized agency also provides preliminary explanations and comments regarding the planned transactions (operations);

5) ensure, within a limitation period, the safety of the data confirming the payment of taxes and payments to the budget;

6) give access to tax authorities’ information system to the authorized state body that carries out financial monitoring and takes other measures to counteract money laundering in accordance with the legislation of the Republic of Kazakhstan;

7) in accordance with the procedure and in cases specified by this Code, place on the website of the authorized body information on taxpayers (tax agents) who:

have tax debt;

are recognized as inactive in accordance with the tax legislation of the Republic of Kazakhstan;

to which issuing of electronic invoices in the information system of electronic invoices is limited pursuant to paragraph 1 of Article 120-1 of this Code;

have registration declared invalid pursuant to a final and binding court judgment;

8) provide a taxpayer (tax agent) with free forms of standard tax applications and (or) software required for filing tax returns and applications in electronic form;

9) consider a complaint of a taxpayer (tax agent) about actions (inaction) of officials of tax authorities;

10) annually, at the request of the National Chamber of Entrepreneurs of the Republic of Kazakhstan, submit information on the names and identification numbers of business entities, which total annual income meets the criteria set by the Law of the Republic of Kazakhstan “On the National Chamber of Entrepreneurs of the Republic of Kazakhstan”;

11) apply methods of ensuring the fulfillment of a tax obligation and forcibly collect tax debt from a taxpayer (tax agent);

12) control the compliance with the procedure for recording, storing, valuing, further use and realization of property transferred into state ownership, for its complete and timely transfer to an appropriate authorized state body in accordance with the legislation of the Republic of Kazakhstan, as well as full and timely receipt of money by the budget in case of its sale;

13) monitor activities of authorized state bodies and local executive bodies in terms of accuracy of calculation, fullness of collection and timely transfer of taxes and payments to the budget;

14) pursuant to a tax application of a taxpayer (tax agent), produce a statement on the amount of income received by a non-resident from sources in the Republic of Kazakhstan and on taxes withheld (paid) in accordance with the procedure and within the time limits established by this Code,

15) post on the authorized body’s website the information on the individual identification number of individuals who have submitted:

assets and liabilities declarations;

income and property declarations;

16) provide access for the national security authorities of the Republic of Kazakhstan to the tax authorities’ information system for the purposes and in the manner prescribed by the Law of the Republic of Kazakhstan "On the National Security Bodies of the Republic of Kazakhstan";

17) in the course of a thematic tax audit on conformity of the name, quantity (volume) of goods with the information indicated in the accompanying invoices for goods when carrying out international road transportation from the territory of one member state of the Eurasian Economic Union to the territory of another member state of the Eurasian Economic Union through the territory of the Republic of Kazakhstan, to withdraw documents, goods and articles that testify to the committed administrative offenses, in the manner prescribed by the Code of the Republic of Kazakhstan on Administrative Infractions.

3. Tax authorities have other rights and perform other duties established by the legislation of the Republic of Kazakhstan.

4. When revealing during tax audit the facts of evading taxes and payments to the budget, as well as deliberate bankruptcy, indicating signs of a criminal offense, the tax authorities shall send materials related to their jurisdiction to the relevant law enforcement bodies for making a procedural decision in accordance with the laws Republic of Kazakhstan.

Footnote. Article 19 as amended by the Law of the Republic of Kazakhstan dated 02.07.2018 No. 166-VI (shall be enforced from 01.01.2019); No. 290-VІ dated December 27, 2019 (shall be enforced upon expiry of ten calendar days after the day of its first official publication); dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 21.12.2022 No. 165-VII (enforcement, see Art 4).