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

Article 221. Mutual agreement procedure

1. A person has the right to apply to the authorized body for conducting a mutual agreement procedure with the competent body of a foreign state with which the Republic of Kazakhstan has concluded an international agreement:

1) to examine the issue of applying the provisions of an international treaty, if it considers that the actions of one or both contracting states lead or will lead to taxation that is inconsistent with the provisions of such an international treaty;

2) to determine the status of residence.

2. The application must indicate the circumstances on which the claims of the person are based.

3. The person is obliged to attach to the application submitted in accordance with subparagraph 1) of paragraph 1 of this article, the copies of accounting documents confirming the amounts of income received (receivable) and (or) taxes withheld (if they are withheld) in a foreign state with which The Republic of Kazakhstan has concluded an international agreement, as well as notarized copies of:

1) contracts (agreements) for performance of work, rendering of services or for other purposes;

2) for legal entities - constituent documents or extracts from the commercial register indicating the founders (participants) and majority shareholders of the resident legal entity;

3) documents referred to in subparagraphs 1), 2) and 3) of paragraph 2 of Article 218 of this Code.

The person has the right to submit other documents not specified in this paragraph, necessary for the mutual agreement procedure.

4. To the application submitted in accordance with subparagraph 2) of paragraph 1 of this article, the person is obliged to attach the documents specified in subparagraphs 2) and 3) of part one of paragraph 3 of this article.

5. The authorized body has the right to demand from the person additional documents in writing necessary for the mutual agreement procedure.

6. The authorized body shall, within five working days from the date of submission of the application, direct to the person a decision to refuse to consider the application on the following grounds:

1) submission of an application for conducting the procedure of mutual agreement with the competent authority of the state with which the Republic of Kazakhstan has not concluded an international agreement;

2) failure to submit the documents provided for in paragraphs 3 and 4 of this article.

If the authorized body refuses to examine the application on the grounds referred to in subparagraph 2) of part one of this paragraph, the person has the right to re-submit the application if the violations are eliminated.

7. The authorized body shall examine the application within forty-five calendar days from the date of its receipt, except for the cases specified in paragraph 6 of this article.

8. Upon examination of the application by the authorized body, one of the following decisions shall be made:

1) on refusal to conduct a mutual agreement procedure;

2) on conducting a mutual agreement procedure.

9. The decision to refuse to conduct the mutual agreement procedure shall be made by the authorized body on the following grounds:

1) non-compliance of the grounds specified in the application with the provisions of the international treaty of the Republic of Kazakhstan;

2) false information provided by a person;

3) non-submission by the person during the examination of the application of the documents referred to in paragraph 5 of this article.

Such a decision shall be directed to the person within two working days from the date of its issuance.

When deciding to refuse to conduct the mutual agreement procedure due to dual residency, refusal on the grounds established by subparagraph 1) of part one of this paragraph shall not apply.

10. If a decision is made to conduct a mutual agreement procedure, the authorized body shall make a request to the competent authority of the foreign state to conduct such a procedure.

11. The authorized body terminates the initiated procedure of mutual agreement with the competent body of a foreign state in the following cases:

1) submission by a person of an application to terminate the mutual agreement procedure;

2) revealing in the course of the mutual agreement procedure of the fact that a person provided false information;

3) non-submission by a person in the course of the mutual agreement procedure of the documents referred to in paragraph 5 of this article.

12. The authorized body shall direct information to the person about the decision taken in the outcome of the mutual agreement procedure within seven working days from the date of such a decision.

13. The decision taken upon the mutual agreement procedure carried out in the manner specified in this article, as well as the decision taken upon the mutual agreement procedure carried on request from the competent authority of a foreign state, are binding on the tax authorities.

Footnote. Article 221 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021).

SECTION 7. CORPORATE INCOME TAX

Chapter 27. GENERAL PROVISIONS