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

Article 23. Interaction of the authorized body with military administration bodies

1. Local military administration bodies shall submit information to the authorized body on individuals called up for obligated military service and discharged from compulsory military service within the following terms:

1) no later than July 31 of the year in which in April – June the individuals were:

called up for compulsory military service;

discharged from compulsory military service;

2) no later than January 31 of the year following the year in which in October – December the individuals were:

called up for compulsory military service;

discharged from compulsory service.

2. The Ministry of Defense of the Republic of Kazakhstan shall submit to the authorized body, in the manner prescribed by the legislation of the Republic of Kazakhstan, the list of local military administration bodies within the following terms:

1) no later than January 1 of the year specified in subparagraph 2) of paragraph 1 of this article;

2) no later than July 1 of the year specified in subparagraph 1) of paragraph 1 of this article.
Article 24. Responsibilities of second-tier banks and organizations carrying out certain types of banking operations

Second-tier banks and organizations carrying out certain types of banking operations are obliged:

1) when opening bank accounts for a taxpayer - a legal entity, including a non-resident, its structural units, an individual registered as an individual entrepreneur or a person engaged in private practice, a foreigner and a stateless person, or when changing an individual identification code in a bank account in the cases provided for in Articles 60-1, 61-2, 61-11, 61-12 of the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", the authorized body shall be notified of the opening or change of these accounts via telecommunications networks that ensure a guaranteed message delivery no later than two business days following the day of their opening or change, indicating the identification number.

Notification shall not be required on bank accounts intended for holding pension assets of the unified accumulative pension fund and voluntary accumulative pension funds, assets of the social health insurance fund, assets of the State Social Insurance Fund, assets that are collateral for the issue of bonds of a special financial company, and assets of an investment fund, savings accounts of non-resident legal entities, foreign nationals and stateless persons, correspondent accounts of foreign correspondent banks, bank accounts intended for receiving benefits and social payments paid from the state budget and (or) the State Social Insurance Fund, current accounts intended for crediting money on the terms of a notary’s deposit, a current account of a private bailiff intended to store the collected amounts in favor of collectors, escrow accounts, bank accounts under an educational savings deposit concluded in accordance with the Law of the Republic of Kazakhstan "On the State Educational Savings System".

Information on taxpayers, including individuals registered as individual entrepreneurs or private practice owners, is provided to second-tier banks and organizations carrying out certain types of banking operations to enable them to fulfill their obligations under this subparagraph and subparagraphs 4), 6), 8), 11), 13) and 15) of this article, in accordance with the procedure established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan.

If it is impossible to notify of the opening or change of these accounts via the telecommunications network for technical problems, the notification shall be sent on paper to the tax authority at the location (residence) of the taxpayer within two business days;

2) in accordance with the international treaty of the Republic of Kazakhstan on the exchange of information, to provide information on the existence of bank accounts and their numbers, on the balance of money in these accounts, as well as information on the existence, type and value of other assets, including those placed on metal accounts or managed by non-resident individuals, non-resident legal entities, as well as legal entities, whose beneficial owners are non-residents, in accordance with the procedure and within the time limits established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan;

3) provide information at the authorized body’s request on the availability of bank accounts and their numbers, on the balances and cash flow on these accounts, other information related to the agreement concluded between an individual or legal entity and a second-tier bank, an organization carrying out certain types of banking operations, an agreement providing for the provision of banking services, as well as information on the availability, type and cost of other property, including those placed on metals accounts or managed by individuals and legal entities specified in the request of a foreign state’s authorized body sent in accordance with an international treaty of the Republic of Kazakhstan;

4) when accepting payment documents for the payment of taxes and payments to the budget, social welfare payments, to verify the identification number in accordance with the rules for identification number creation.

If an identification number indicated in a payment document differs from the data of the authorized state body in charge of creation of identification numbers and maintenance of national registers of identification numbers or does not exist, second-tier banks or organizations carrying out certain types of banking operations shall refuse to execute such a payment document.

The provisions of parts one and two of this subparagraph shall not apply to making payments to the budget, provided for by subparagraph 2) of paragraph 1 of Article 189 of this Code, by a foreigner and stateless person;

5) to refuse to execute a payment document for tax on vehicles of individuals in case of discrepancy of the identification number of cars and trucks, buses indicated in the payment document with the data submitted by the authorized body for road safety.

If there is no vehicle identification number in the data submitted by the authorized body for road safety, second-tier banks or organizations carrying out certain types of banking operations may not refuse to execute a payment document for tax on vehicles of individuals;

6) when closing bank accounts for a taxpayer, referred to in subparagraph 1) of this article, the authorized body shall be notified of their closure via telecommunications network that ensures guaranteed message delivery no later than two business days following the day of their closure, indicating the identification number.

If it is impossible to notify of the closure of the said accounts via the telecommunications network due to technical problems, the notification shall be sent in hard copy to the tax authority at the location (residence) of the taxpayer within two business days;

7) upon termination of recognition of income in the form of remuneration for a granted credit (loan) by suspending the payment of such remuneration to an individual registered as an individual entrepreneur or to a legal entity, to notify the authorized body thereof on or before March 31 of a year following the tax accounting period determined in accordance with Article 314 of this Code, in which such recognition was terminated, in the form established by the authorized body;

8) if there is enough money in bank accounts of a client to satisfy all demands made on him/her/it, to execute the taxpayer’s payment orders for taxes and payments to the budget from his/her/its bank account as a matter of priority. Likewise, to execute collection orders of tax authorities on the recovery of tax debt within one business day following the receipt of tax authorities’ instructions.

If money in bank accounts is insufficient to satisfy all demands made on a client, a second-tier bank withdraws money to pay off tax debt in the order of priority set by the Civil Code of the Republic of Kazakhstan;

9) to transfer the amounts of taxes, payments to the budget and social welfare payments:

on the day of their initiation by a taxpayer, except for cases where payment is made using a payment card;

not later than one business day from writing off money from a taxpayer’s bank account in cases where payment is made using a payment card;

during a business day, but not later than the next business day of the payment at cash departments of second-tier banks or organizations carrying out certain types of banking operations, or payment in cash through point-of-sale terminals of second-tier banks or organizations carrying out certain types of banking operations;

10) ensure access of an official of tax authorities to checks of the availability of money and transactions in bank accounts of an audited individual registered as an individual entrepreneur or a private practice owner or a legal person, given a relevant order;

11) upon the decision of a tax authority, in cases provided for by this Code, to suspend all debit transactions in bank accounts, except for correspondent ones, of an individual registered as an individual entrepreneur or a private practice owner, a legal entity, a structural unit of a legal entity or structural unit of a non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment, in accordance with the procedure established by

the laws of the Republic of Kazakhstan, with due regard to paragraph 2 of Article 118 of this Code;

12) in accordance with the civil legislation of the Republic of Kazakhstan, upon termination of obligations for credits (loans) granted to a borrower, who is an individual registered as an individual entrepreneur or a legal entity as of the date of termination of an obligation, within thirty calendar days, to notify the tax authority at the location (place of residence) of the borrower of the amount of the terminated obligation.

The provisions of part one of this subparagraph shall not apply if an obligation is terminated due to its execution;

13) within ten business days from the receipt of a tax authority’s request, to submit information on the existence of bank accounts and their numbers, on the balances and movements of money in these accounts:

of a legal entity and (or) its structural unit audited for tax-related issues;

an individual whose obligation to submit a declaration of assets and liabilities arouse;

of an individual registered as an individual entrepreneur or a private practice owner audited for tax-related issues;

of an individual entrepreneur, a private practice owner, a legal entity subject to special considerations in the performance of a tax obligation when the activity is terminated in accordance with Articles 59 and 66 of this Code;

of an individual registered as an individual entrepreneur or a private practice owner, a legal entity and (or) its structural unit, whose actual absence from the place of location is confirmed by the procedure set forth in Article 70 of this Code, and who failed to submit tax returns within six months after the deadline for their filing set by this Code, except for its extension in cases provided for by this Code;

of an individual deregistered as an individual entrepreneur in accordance with Article 67 of this Code for a time period not exceeding the limitation period set in paragraph 2 of Article 48 of this Code;

an individual registered as an individual entrepreneur, a legal entity, a structural unit of a legal entity that has a tax debt not paid off within two months from the date of its occurrence, in the amount of more than 5,000 times the monthly calculation index established by the law on the republican budget and the relevant financial year effective as of January 1;

of an inactive individual registered as an individual entrepreneur, a legal entity in accordance with the procedure prescribed by the authorized body in coordination with the National Bank of the Republic of Kazakhstan;

of a person registered in accordance with the procedure established by the law of the Republic of Kazakhstan as a candidate for President of the Republic of Kazakhstan, as a deputy of the Parliament of the Republic of Kazakhstan and maslikhat, as well as a member of local self-government bodies and his/her spouse;

of a person who is a candidate for public office or for a position related to the performance of state functions or those equated to them, and his/her spouse;

of a person holding a public office, during the period of his/her being in office, and his/her spouse during the same period;

of a person released on parole from serving a sentence.

14) submit, within ten working days from the date of receiving the tax authority's request, information on granted loans to an individual who is under obligation to submit a declaration of assets and liabilities, indicating the repayment amounts, including remuneration.

The information provided for in subparagraph 13) of part one of this article, with the exception of paragraph eight, shall be submitted in the form established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan. The information provided for by part one of this subparagraph shall be submitted in the form established by the authorized body in agreement with the authorized body for regulation, control and supervision of the financial market and financial organizations;

15) to reject the bank accounts opening, with the exception of correspondent accounts, as well as bank accounts intended for receiving benefits and social payments paid from the state budget and the State Social Insurance Fund, pensions paid from the state budget and (or) the unified accumulative pension fund , and (or) a voluntary accumulative pension fund, alimony (money intended for the maintenance of minors and disabled adult children), as well as bank accounts under an agreement on educational accumulative deposit concluded in accordance with the Law of the Republic of Kazakhstan “On State educational accumulative system, banking accounts intended for crediting payments and subsidies to pay for rented housing in a private housing stock, lump-sum pension payments credited from the unified accumulative pension fund to improve housing conditions and (or) pay for treatment”:

a taxpayer recognized inactive in accordance with the procedure set forth in Article 91 of this Code;

a taxpayer who has an open bank account with this second-tier bank, which is subject to collection orders or orders to suspend debit operations in the taxpayer’s bank accounts issued by tax authorities;

a taxpayer who has tax debt, debts on social payments.

At the same time, with consent of the taxpayer who has tax arrears, debts on social payments, the bank shall be entitled to open a bank account, provided that debit transactions are carried out on such a bank account after the full repayment of tax arrears, debts on social payments, including by transferring these types of debts by the taxpayer from the specified bank account.

The provisions of part one of this Subparagraph shall not apply:

in case of opening bank accounts by a parent bank in lieu of bank accounts transferred by a second-tier bank within operations for simultaneous transfer of assets and liabilities of second-tier banks in accordance with the legislation of the Republic of Kazakhstan on banks and banking activity and bank accounts opened by a successor bank in lieu of those transferred by a second-tier bank in case of its incorporation within their reorganization;

upon opening bank accounts by a taxpayer, in respect of whom a court decision has entered into force on declaring it bankrupt and liquidating with the initiation of bankruptcy proceedings;

in case of paying the amount of debt by a taxpayer provided by Sub-paragraph four of part one of this Subparagraph on the day of contacting a second-tier bank or organization carrying out certain types of banking operations to open a bank account;

16) provide information on taxpayers engaged in collection activities under agreements containing the conditions for the transfer of rights (claims) to the tax authority at the location of the said taxpayers no later than the 25th day of the month following the quarter, in the form established by the authorized body in agreement with the authorized body regulation, control and supervision of the financial market and financial organizations;

17) to submit information on the existence of bank accounts and their numbers, on the balances and movements of money in these accounts of taxpayers registered for the activity provided for by subparagraph 10) of paragraph 1 of Article 88 of this Code, in accordance with the procedure and within the time limits established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan.;

18) excluded, in accordance with the Law of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022);

19) at the request of the authorized body, provide the taxpayers - individual registered as an individual entrepreneur or a person engaged in private practice, a legal entity with information on the total amounts of payments for the calendar year received on the current account through the use of equipment (device), intended for making payments using payment cards and mobile payments.

The categories of taxpayers, the procedure, form and terms for submitting information are established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.

20) submit information and (or) documents to the authorized body in accordance with the rules for withdrawing cash from bank accounts by business entities, approved by a joint act of the National Bank of the Republic of Kazakhstan, the authorized body and the authorized body for regulation, control and supervision of the financial market and financial organizations;

21) submit to the authorized body for taxpayers - individuals registered as individual entrepreneurs, applying certain special tax regimes and being users of a special mobile application, information on the total amounts of payments received on the account for entrepreneurial activities for the calendar month, except for the amounts of payments, information on which is received in a special mobile application by checks of such an app in accordance with the provisions of paragraph 4 of Article 686-1 of this Code.

The procedure, form and terms for submitting information are established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan;

22) provide the authorized body with information on the total amounts of payments and transfers for the calendar year made in favor of and in the context of foreign companies specified in paragraphs 1 and 2 of Article 779 of this Code no later than the 15th day of the second month following the reporting year.

In order to obtain information, the authorized body sends to second-tier banks and organizations engaged in certain types of banking operations the information specified in subparagraph 4-1) of paragraph 1 of Article 778 of this Code no later than the 10th day of the month following the reporting year.

The information and data specified in parts one and two of this subparagraph are provided in the manner, in the form and within the time limits established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan;

Subparagraph 23) is suspended from 01.01.2023 to 01.01.2024 by the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI and during the period of suspension this paragraph is valid in the following edition.

23) when identifying transactions that have signs of receiving income from entrepreneurial activities according to certain criteria established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan, provide information on the following individuals:

persons holding a responsible public position and their spouses;

persons authorized to perform state functions and their spouses;

persons equated to persons authorized to perform state functions and their spouses;

persons who are obligated to submit a declaration in accordance with the Constitutional Law of the Republic of Kazakhstan "On Elections in the Republic of Kazakhstan" and the laws of the Republic of Kazakhstan "On Combating Corruption", "On Banks and Banking Activities in the Republic of Kazakhstan", "On Insurance Activities", "On the securities market".

The criteria for classifying transactions carried out on bank accounts of individuals as transactions that have signs of receiving income from entrepreneurial activities, the procedure, form and terms for submitting information are established by the authorized body in agreement with the National Bank of the Republic of Kazakhstan.

For the purposes of this article, accounts of state institutions opened with the central authorized body for budget execution are treated as bank accounts, and the central authorized body for budget execution is treated as an organization carrying out certain types of banking operations.

Reports and information provided for in subparagraphs 7), 12), 13) and 16) of part one of this article shall be submitted via a telecommunications network. In case of impossibility of their submission via a telecommunications network due to technical problems, these reports and information shall be sent in hard copy.

Information provided by second-tier banks and organizations carrying out certain types of banking operations in accordance with this Code is used by tax authorities in accordance with the procedure established by the authorized body.

Footnote. Article 24 as amended by the Law of the Republic of Kazakhstan dated 02.07.2018 No. 168-VІ (shall be enforced from 01.01.2019); dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication);dated 02.04.2019 No. 241-VI (enforcement see Article 2); No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020); 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 02.07.2020 No. 354-VI (effective from 01.01.2021); dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 20.12.2021 No. 85-VII (see Article 2 for the procedure for enactment); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).