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

Article 163. Procedure for identifying taxable and (or) tax-related items

1. Taxable and (or) tax-related items are identified on the basis of information received in accordance with the procedure set forth in Article 162 of this Code.

2. Information on the receipt of money on bank accounts, payment cards, and also from other payment and settlement documents of a taxpayer (tax agent), which is confirmed by a bank account statement and other information (documents) confirming the receipt of money by the taxpayer (the tax agent), is (are) used for income calculation.

3. When individuals or organizations specified in Article 162 of this Code provide information regarding the existence of other received (receivable) income of an audited taxpayer (tax agent), the amount of these revenues shall be included in the total income amount (taxable turnover).

4. In case of establishing the fact of receipt of currency proceeds from taxpayer’s (tax agent’s) export transactions on the basis of information provided by the National Bank of the Republic of Kazakhstan and second-tier banks, as well as by the tax authorities of the Eurasian Economic Union member states, this amount of currency proceeds is included in the sales turnover and total income.

5. When identifying taxable and (or) tax-related items, in accordance with this article, the taxpayer’s (tax agent’s) expenses not confirmed by source documents are not deductible for the calculation of corporate income tax and for offset to calculate VAT.

6. The tax base for excisable goods is determined on the basis of Article 466 of this Code.

In this case, the volume of produced excisable goods is determined in accordance with industry rates of expenditure and loss of raw materials, energy resources and auxiliary materials.

7. If a taxpayer (tax agent) has been found to have fixed assets, including construction in progress, vehicles, land plots, intangible assets, investment property, and no documents confirming their original value, the market value of the said property shall be included in the total income of this taxpayer.

The market value of items is determined on the basis of the report of an appraiser engaged by tax authorities, who carries out his/her activity in accordance with the legislation of the Republic of Kazakhstan.

8. Money can also be subject to individual income taxation, social taxation in case of establishing facts of withdrawing money from a bank account to pay wages and (or) transfer of money from a bank account to bank accounts of individuals. In this case, a tax obligation arises at the moment when a second-tier bank or organization carrying out certain types of banking operations executes the taxpayer’s (tax agent’s) orders to transfer (give out) appropriate amounts of money to the taxpayer (tax agent) or third parties.

9. Information on taxable and (or) tax-related items identified by tax authorities using indirect methods is compared with the relevant data indicated by the taxpayer (tax agent) in the forms of tax returns and other reports submitted to tax authorities.

10. If amounts of taxes and payments to the budget declared by a taxpayer (tax agent) in his/her/its tax returns exceed amounts of taxes determined by indirect methods, the tax amounts indicated by the taxpayer (tax agent) in the tax returns are accepted in the course of an audit.

11. If an amount of income declared by a taxpayer (tax agent) in his/her/its tax returns exceeds an amount of income identified on the basis of other (additional) sources of information, the amount of income specified in the tax returns is accepted in the course of an audit.