On taxes and other obligatory payments to the budget (Tax Code)
Article 297. Taxation of the profit of a controlled foreign company
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k1700000120.01-01-2023.eng
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Article 297. Taxation of the profit of a controlled foreign company
1. The total profit of controlled foreign companies or permanent establishments of controlled foreign companies, with the exception of those registered in countries with preferential taxation, determined in accordance with paragraphs 2, 3, 3-1 and 4 of this Article, shall be recognized as taxable income of controlled foreign companies and permanent establishments of controlled foreign companies, with the exception of those registered in states with preferential taxation, and shall be subject to corporate or individual income tax in the Republic of Kazakhstan. The total profit of controlled foreign companies or permanent establishments of controlled foreign companies registered in countries with preferential taxation, determined in accordance with paragraphs 2 and 3 of this Article, shall be recognized as taxable income of controlled foreign companies and permanent establishments of controlled foreign companies registered in states with preferential taxation, and shall be subject to corporate or individual income tax in the Republic of Kazakhstan. 2. The total profit of CFCs (controlled foreign companies) or permanent establishments of CFCs shall be determined by the following formula: P = P1 × S1 + P2 × S2 + ... + Pn × Sn, where: P - the total profit of all controlled foreign companies or permanent establishments of controlled foreign companies, with the exception of controlled foreign companies or permanent establishments of controlled foreign companies, the financial profit of which is exempt from taxation in accordance with Article 296 of this Code; S1, 2,..,n - the share of direct, indirect, constructive participation or direct, indirect, constructive control of a resident in each controlled foreign company; P1, 2,..,n - the positive value of financial profit of each controlled foreign company or each permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan, determined by a resident, according to one of the following formulas: P1, P2,..., Pn = Pbt 1,2,…n – R1,2,…n – L1,2,…n or P1, P2,..., Pn= Pbt1,2,…n × SPI1,2,…n, where: Pbt1,2,…n - the positive amount of financial profit before tax of each controlled foreign company or each permanent establishment of a controlled foreign company for the reporting period; R1,2,…n - the amount of reductions made by a resident from financial profit before taxation of each controlled foreign company or financial profit before taxation of each permanent establishment of a controlled foreign company for the reporting period in accordance with paragraph 4 of this Article; SPI1,2,…n - the share of passive income of each controlled foreign company or each permanent establishment of a controlled foreign company, determined in accordance with subparagraph 11-3) of paragraph 4 of Article 294 of this Code; L1,2,…n – the amount of loss of each controlled foreign company or each permanent establishment of a controlled foreign company that arose in two consecutive periods preceding the reporting period. At the same time, reduced losses in subsequent periods shall not be taken into account. For the purposes of part one of this paragraph, a loss is recognized as a loss reflected in the approved separate non-consolidated financial statements, which must be available to the resident applying the loss (with a mandatory translation into Kazakh or Russian). The loss of a controlled foreign company or a permanent establishment of a controlled foreign company does not reduce: 1) the financial profit of this controlled foreign company and (or) this permanent establishment of a controlled foreign company, calculated in accordance with paragraph 3 of this Article; 2) financial profit before taxation of another controlled foreign company or other permanent establishment of a controlled foreign company; 3) taxable income of a resident. A resident shall not be entitled to use the losses of a controlled foreign company and (or) a permanent establishment of a controlled foreign company registered in states with preferential taxation. For the purposes of part one of this paragraph, if a resident uses a formula with a share of passive incomes when calculating the total profit of a controlled foreign company or a permanent establishment of a controlled foreign company, it shall be necessary to apply the same formula to all his other controlled foreign companies or permanent establishments of controlled foreign companies for the reporting tax period. 3. Determination of financial profit before taxation of a controlled foreign company or financial profit before taxation of a permanent establishment of a controlled foreign company for the reporting period shall be carried out on the basis of the approved separate non-consolidated financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company prepared in accordance with the standard established by the legislation of the country in which a controlled foreign company is registered or a permanent establishment of a controlled foreign company is registered, or in accordance with International financial reporting standards. At the same time, a resident shall have the right to determine the financial profit before taxation of a controlled foreign company or a permanent establishment of a controlled foreign company on the basis of approved separate non-consolidated financial statements prepared in accordance with international financial reporting standards, only if audited financial statements are available. If the legislative acts of the state in which a controlled foreign company is registered establish an obligation to prepare only consolidated financial statements with the consolidation of data of subsidiaries (associated, joint) organizations without drawing up separate non-consolidated financial statements and there are no separate non-consolidated financial statements, the resident shall make the following adjustments from the financial profit (loss) of a controlled foreign company for the reporting period, determined (defined) in the financial statements for the reporting period, by excluding the following amounts, confirmed by an auditor’s report, which must be available to the resident: the amount of financial profit (loss) for the reporting period of subsidiaries (associated, joint) organizations, collected in the consolidated financial profit (consolidated loss) according to the consolidated financial statements of a controlled foreign company; the amount of financial profit (loss) of subsidiaries (associated, joint) organizations for the reporting period, when they are consolidated from the consolidated financial profit (consolidated loss) according to the consolidated financial statements of the parent company for the reporting period, which shall be subject to increase (decrease) by the amounts of financial profits (losses) from intra-group transactions when they are eliminated during consolidation. When adjusting the data of the consolidated financial statements of a controlled foreign company for the reporting period in accordance with this paragraph, dividends received or receivable from a subsidiary (associated, joint) organization that are not reflected in the consolidated financial profit (consolidated loss) on the consolidated financial statements recognized in accounting in the reporting period, shall be subject to inclusion in the income of a controlled foreign company for the reporting period and confirmed by the auditor's report. For the purposes of this paragraph, the financial profit before taxation of a controlled foreign company or a permanent establishment of a controlled foreign company for the reporting period shall exclude income similar to those specified in subparagraphs 2), 3), 9) and 11) of paragraph 2 of Article 225 of this Code, and expenses, similar to those specified in paragraphs 4 and 5 of Article 242 of this Code, provided that financial profit before taxation includes such income and (or) expenses. To apply this part, a resident must have a document certified by the signature of the cfirst head (or a person authorized to sign the financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on each excluded type of income and expense, in the context of amounts (with mandatory translation into Kazakh or Russian), or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information about each excluded type of income and expense, in the context of amounts (with mandatory translation into Kazakh or Russian). 3-1. If a resident doesn’t have an approved separate non-consolidated financial statements by March 31 of the second year following the reporting year, the amount of financial profit before taxation of a controlled foreign company or financial profit before taxation of a permanent establishment of a controlled foreign company for such a reporting period shall be determined by the resident at his choice in one of the following procedures: 1) in a manner similar to the procedure for determining taxable income in accordance with the provisions of this Code; 2) as the product of the income of a controlled foreign company or income of a permanent establishment of a controlled foreign company for the reporting period and a coefficient of 0.5. The amount of income shall be determined based on the receipt of money in the bank accounts of a controlled foreign company or bank accounts of a permanent establishment of a controlled foreign company during the reporting period. For the purposes of part one of this subparagraph, the following types of receipts shall be subject to exclusion if supporting documents are available: receipt of money to bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company during the reporting period, from other bank accounts of this controlled foreign company or its permanent establishment (internal and interbank money transfers); receipt and (or) return of borrowed funds, with the exception of remuneration on loans and penalties, fines. For the application of this paragraph, the resident must have a copy of the loan agreement and payment order for the return and (or) receipt of borrowed funds; receipt of erroneously credited amounts of money, subject to return in the current tax period; receipt of money as a contribution to the authorized capital. The resident upon receipt of a document that meets the conditions of paragraph 3 of this Article, after the period established by paragraph 4 of Article 315 of this Code shall be obliged to recalculate the amount of financial profit of a controlled foreign company and (or) a permanent establishment of a controlled foreign company. If there is a document that meets the conditions of subparagraph 1) of paragraph 4 of Article 294 of this Code, the taxpayer shall be obliged to recalculate the amount of financial profit of a controlled foreign company or a permanent establishment of a controlled foreign company. 4. A resident shall have the right to reduce the financial profit before taxation of a controlled foreign company by the following amounts if supporting documents are available: 1) the amount of the reduction, determined by the following formula: R = FP × (I(1)/TAI), where: R - the amount of reduction; FP - the positive value of financial profit before taxation of a controlled foreign company; I(1) - income of a controlled foreign company from entrepreneurial activities in the Republic of Kazakhstan through a branch, representative office, permanent establishment, subject to corporate income tax in the Republic of Kazakhstan at a rate of 20 percent or more, within the taxable income of the branch, provided that the financial profit is up to taxation of a controlled foreign company takes into account the taxable income specified in this subparagraph; TAI - the total amount of income; 2) the amount of reduction determined by the following formula: R = FP × (I(2)/TAI), where: R - the amount of reduction; FP - the positive value of financial profit before taxation of a controlled foreign company; I(2) - income from the provision of services (performance of works) in the Republic of Kazakhstan without the formation of a permanent establishment, received by a controlled foreign company from sources in the Republic of Kazakhstan, subject to corporate income tax in the Republic of Kazakhstan at the source of payment at a rate of 20 percent, provided that financial profit before taxation is determined taking into account the income specified in this subparagraph; TAI - the total amount of income; 3) dividends received by a controlled foreign company from sources in the Republic of Kazakhstan, which are not subject to corporate income tax at the source of payment in accordance with subparagraph 3), paragraph 9 of Article 645 of this Code, provided that the financial profit before tax of the controlled foreign company includes such income; 4) the amount of dividends received by one controlled foreign company from another controlled foreign company, which are part of the unified organizational structure of the consolidated group. At the same time, the financial profit of one controlled foreign company must include such dividends that were previously taxed (subject to taxation in the current period) with corporate income tax on the financial profit of another such controlled foreign company in the Republic of Kazakhstan and (or) reduced in accordance with subparagraphs 3), 5), 6), 7), 8) and 9) of this paragraph or part one of this subparagraph; 5) the amount of dividends received by a controlled foreign company from a foreign company included in the unified organizational structure of the consolidated group. At the same time, the financial profit of such a controlled foreign company must include such dividends that were previously taxed (subject to taxation in the current period) with corporate income tax on the financial profit of another such controlled foreign company in the Republic of Kazakhstan and (or) reduced in accordance with subparagraphs 3), 4), 6), 7), 8) and 9) of this paragraph or part one of this subparagraph; 6) the amount of reduction determined by the following formula: R = FP × (I(6)/TAI), where: R - the amount of reduction; FP - the positive value of financial profit before taxation of a controlled foreign company; I (6) - income in the form of remuneration and (or) from capital gains and (or) in the form of royalties received by a controlled foreign company from sources in the Republic of Kazakhstan, previously subject to corporate income tax in the Republic of Kazakhstan at the source of payment, provided that the financial profit of a controlled foreign company before taxation includes such income; TAI - the total amount of income; 7) the amount of reduction determined by the following formula: R = FP × (I(7)/TAI), where: R - the amount of reduction; FP - the positive value of financial profit before taxation of a controlled foreign company; I (7) - income from capital gains received by one controlled foreign company from the sale of another controlled foreign company, which is the founder of a resident of the Republic of Kazakhstan that meets the conditions of subparagraph 7) or 8) of paragraph 9 of Article 645 of this Code, provided that the financial profit of one controlled foreign company includes such income; TAI - the total amount of income; 8) income in the form of remuneration and (or) from capital gains and (or) in the form of royalties received by a controlled foreign company from sources in the Republic of Kazakhstan, not subject to corporate income taxation at the source of payment in accordance with subparagraphs 6), 7), 8) and 9) paragraph 9 of Article 645 of this Code, provided that the financial profit of a controlled foreign company before taxation includes such income; 9) the amount of dividends received by a controlled foreign company from sources in the Republic of Kazakhstan, previously subject to corporate income tax in the Republic of Kazakhstan at the source of payment, provided that financial profit before taxation includes such dividends; 10) the amount of dividends received by a controlled foreign company from a foreign company included in the unified organizational structure of the consolidated group. At the same time, the financial profit of such a controlled foreign company must include such dividends received from the sources of the Republic of Kazakhstan, which were previously subject to corporate income tax at the source of payment in the Republic of Kazakhstan and (or) were not subject to corporate income tax at the source of payment in accordance with subparagraph 3), paragraph 9 of Article 645 of this Code. The provisions of part one of this paragraph shall not be applied to a controlled foreign company and (or) a permanent establishment of a controlled foreign company that is registered in states with preferential taxation. 5. If the duration or start and end dates of a reporting period in a foreign country and a reporting taxable period in the Republic of Kazakhstan, determined in accordance with Article 314 of this Code, do not coincide, a taxpayer is obliged to adjust the financial profit of each controlled foreign company or financial profit of each permanent establishment of the controlled foreign company subject to taxation in the Republic of Kazakhstan, by applying adjustment coefficients (C1, C2) as follows: P1, P2, …, Pn = Pн × C1 + Pt+1 × C2, C1 = RP (СН)1 / RP (СН)3, C2 = RP (СН)2 / RP (СН)3, where: P1, P2, …, Pn - the positive amount of financial profit of each controlled foreign company or each permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan; Pt - the positive amount of the financial profit of a controlled foreign company or financial profit of a permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan for one reporting period within the frames of the reporting taxable period in the Republic of Kazakhstan; Pt+1 - the positive amount of the financial profit of a controlled foreign company or financial profit of a permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan for another reporting period within the frames of the reporting taxable period in the Republic of Kazakhstan; RP (СН)1 - the number of months of one reporting period in a foreign country within which a resident owns participatory interests or has control in a controlled foreign company within the frames of the reporting taxable period in the Republic of Kazakhstan; RP (СН)2 - the number of months of the next reporting period in a foreign country within which the resident owns participatory interests or has control in a controlled foreign company within the frames of the reporting taxable period in the Republic of Kazakhstan; RP (СН)3 - the total number of months of the reporting period in a foreign country. If a resident owns participatory interests or has control in a controlled foreign company for an incomplete reporting period (less than twelve months), the resident has the right to adjust the financial profit of each controlled foreign company or financial profit of each permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan, as follows: P1, P2, …, Pn = P × RP (СН)4 / RP (СН)3, where: P1, P2, …, Pn - the positive amount of financial profit of each controlled foreign company or each permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan; P - the positive amount of the financial profit of a controlled foreign company or permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan for the reporting period; RP (СН)3 - the total number of months of the reporting period in a foreign country; RP (СН)4 - the number of months of the reporting period in a foreign country within which the resident owns participatory interests or has control in a controlled foreign company within the frames of the reporting taxable period in the Republic of Kazakhstan. 6. The amount of financial profit of each controlled foreign company or financial profit of each permanent establishment of a controlled foreign company subject to taxation in the Republic of Kazakhstan denominated in foreign currency shall be recalculated by the resident in tenge using the arithmetic-mean market exchange rate for the reporting period. 7. The coefficient of direct participation or direct control of a resident in each controlled foreign company is determined using the following formula: D1, D2, …, Dn = Х/100 %, where: D1, D2, …, Dn - coefficient of direct participation or direct control of the resident in each controlled foreign company; X - the share of direct participation or direct control of the resident in each controlled foreign company, in percentage terms. The coefficient of indirect participation or indirect control of a resident in each controlled foreign company is determined using the following formula: I1, I2, …, In = Х1/100 % х Х2/100 % х...х Хn/100 %, where: I1, I2, …, In - coefficient of indirect participation or indirect control of the resident in each controlled foreign company; X1 - the share of direct participation or direct control of the resident in the person through which indirect participation or indirect control is exercised, in percentage terms; Х2, ... - the share of direct participation or direct control of each previous person in each successive person in the appropriate sequence, through whom indirect participation or indirect control is exercised, in percentage terms; Хn - the share of direct participation or direct control of a previous person in a controlled foreign company, in percentage terms. The coefficient of constructive participation or constructive control of a resident in each controlled foreign company is calculated in one of the following orders: 1) coefficient of direct participation or direct control of a resident in a controlled foreign company plus coefficient of indirect participation or indirect control of a resident in a controlled foreign company; 2) coefficient of direct and (or) indirect participation or direct and (or) indirect control of a resident in a controlled foreign company plus coefficient of direct and (or) indirect participation or direct and (or) indirect control of a controlled person in a controlled foreign company provided that the controlled person is an immediate family member of the resident and is a resident of the Republic of Kazakhstan. In case of constructive ownership by a resident individual of participatory interests or if a resident individual has constructive control in a controlled foreign company with the participation of resident immediate family members who have not reached the age of majority, the provisions of this article shall apply to such constructive ownership or such constructive control. In case of constructive ownership by a resident individual of participatory interests or if a resident individual has constructive control in a controlled foreign company with the participation of resident immediate family members who have reached the age of majority and (or) retirement, the provisions of this paragraph apply to such constructive ownership or such constructive control given written consent of such immediate family members. Without written consent of such an immediate family member (immediate family members), the tax obligation, in accordance with this chapter, shall be fulfilled by each person (the resident and such an immediate family member (members) of the resident) independently in proportion to the ownership interest or control in the controlled foreign company if the aggregate participatory interest of the resident and such an immediate family member (members) in a controlled foreign company exceeds 25 percent or the resident and such an immediate family member (members) have joint control in a controlled foreign company. 8. The provisions of this article apply to a permanent establishment of a controlled foreign company. 9. The provisions of this article shall apply irrespective of reliefs, investment tax preferences, the most favored nation treatment granted to a resident and (or) established by the legislation of the Republic of Kazakhstan for a resident, as well as other taxation conditions that are more favorable than those provided for by this Code. 10. For the purposes of this Article, confirming documents mean the following documents: 1) for the application of subparagraph 1) of part one of paragraph 3-1 of this Article, copies of documents allowing to determine the amount of financial profit before taxation for the reporting period of a controlled foreign company or a permanent establishment of a controlled foreign company. Such documents shall be the statements from bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company, primary documents confirming the transactions performed in accordance with the business practices of a controlled foreign company or a permanent establishment of a controlled foreign company; 2) for the application of subparagraph 2) of part one of paragraph 3-1 of this Article: copies of monthly statements in paper and (or) electronic form from all bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company for the reporting period; an official document issued by a bank and (or) a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing the information provided for in part two of subparagraph 2) of part one of paragraph 3-1 of this Article, and containing information about all bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company; 3) for the application of subparagraph 1) of part one of paragraph 4 of this Article: a copy of the approved financial statements of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign the financial statements) of a controlled foreign company, containing a breakdown of the income and expenses of each branch of a controlled foreign company included in the financial profit of a controlled foreign company, indicating the business identification numbers of such branches, or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company, containing a breakdown of the income and expenses of each branch of a controlled foreign company included in the financial profit of a controlled foreign company, indicating the business identification numbers of such branches; 4) for the application of subparagraph 2) of part one of paragraph 4 of this Article: a copy of the approved financial statements of a controlled foreign company or permanent establishment of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income from the provision of services (performance of works) in the Republic of Kazakhstan without the formation of a permanent establishment of a controlled foreign company, in breakdown by amounts and customers, indicating business identification numbers and (or) individual identification numbers, or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income from the provision of services (performance of works) in the Republic of Kazakhstan without the formation of a permanent establishment of a controlled foreign company, in the context of amounts and customers, indicating business identification numbers and (or) individual identification numbers; 5) for the application of subparagraphs 3), 4), 5), 9) and 10) of the first part of paragraph 4 of this Article: copies of a document (documents) confirming the distribution of dividends of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, confirming the distribution and payment of dividends from sources in the Republic of Kazakhstan by a controlled foreign company and (or) foreign company to another controlled foreign company applying the reduction (in case of application of subparagraphs 3), 9) and 10) of part one of paragraph 4 of this Article), or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, confirming the distribution and payment of dividends from sources in the Republic of Kazakhstan by a controlled foreign company and (or) by a foreign company to another controlled foreign company applying the reduction (in case of application of subparagraphs 3), 9) and 10) of part one of paragraph 4 of this Article); a copy of the approved financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing information on dividends received from subsidiaries (associated) of a controlled foreign company, broken down by amounts and names of companies, distributing dividends, indicating the registration number in the country of residence, or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing information on dividends received from subsidiaries (associated) organizations of a controlled foreign company, broken down by amounts and names of companies distributing dividends, indicating the registration number in the country of residence; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a resident, containing information about the unified organizational structure of the consolidated group, indicating the names, registration numbers in the country of residence, their geographical location (names of states (territories), sizes of participation shares (voting shares) of all participants in the unified organizational structure of the consolidated group; 6) for the application of subparagraphs 6), 7) and 8) of part one of paragraph 4 of this Article: a copy of the approved financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income in the form of remuneration, royalties from sources in the Republic of Kazakhstan, broken down by amounts and names of residents of the Republic of Kazakhstan, who paid income, indicating business identification numbers and (or) individual identification numbers (in case of application of subparagraphs 6) and 8) of part one of paragraph 4 of this Article, in relation to income in the form of remuneration, royalties), or an explanatory note to the audited financial statements certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income in the form of remuneration, royalties from sources in the Republic of Kazakhstan, broken down by amounts and names of residents of the Republics and Kazakhstan, who paid income, indicating business identification numbers and (or) individual identification numbers (in case of application of subparagraphs 6) and 8) of part one of paragraph 4 of this Article, in relation to incomes in the form of remuneration, royalties); a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income in the form of value added, broken down by amounts, names and assets sold, including those located in Republic of Kazakhstan, indicating the registration numbers in the country of residence (in case of application of subparagraphs 6), 7) and 8) of part one of paragraph 4 of this Article, in relation to income in the form of value added), or an explanatory note to the audited financial statements, certified by a person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, containing a breakdown of income in the form of value added, broken down by amounts, names and assets sold, including those located in the Republic of Kazakhstan, indicating registration numbers in the country of residence (in case of application of subparagraphs 6), 7) and 8) of part one of paragraph 4 of this Article, in relation to income in the form of value added); a document certified by the signature of the first head (or a person authorized to sign financial statements) of a resident, containing information about the unified organizational structure of a consolidated group, indicating the names, registration numbers in the country of residence, their geographical location (names of states (territories), sizes of participation shares (voting shares) of all participants in the unified organizational structure of a consolidated group; copies of title documents of a resident of the Republic of Kazakhstan that meets the conditions of subparagraph 7) or 8) of paragraph 9 of Article 645 of this Code; 7) for the application of paragraph 11) of part one of paragraph 2 of this Article: a copy of the approved financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company; a document certified by the signature of the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing the ratio of passive income to the total amount of income, by each type of passive income and the amounts included in the total amount of income, indicating the registration number of the customer in the country of residence, or an explanatory note to the audited financial statements certified by the person who audited the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing the ratio of passive income to the total amount of income, in the context of each type of passive income and the amounts included in the total amount of income, indicating the registration number of the customer in the country of residence. The documents specified in this paragraph, or copies thereof, must be available to the resident (with mandatory translation into Kazakh or Russian, if necessary), applying the provisions of paragraphs 3-1 and 4 of this Article. 11. A resident shall be obliged to submit a transformation document to the authorized body no later than ten working days after submitting a corporate or individual income tax declaration, which includes the total profit of controlled foreign companies or permanent establishments of controlled foreign companies. For the purposes of this section, a transformation document is a document certified by the signature and seal (if any) of a resident (or a person authorized to sign on the basis of a notarized power of attorney), containing the following information: 1) a unified organizational structure of a consolidated group, of which the resident is a participant (shareholder), reflecting the names of all participants of a consolidated group and their geographical location (names of the states (territories) where the participants of a consolidated group are created (established), the size of participation shares, numbers of the state and tax registration of all members of the consolidated group (if tax registration is available); 2) financial profit and the total amount of income of each controlled foreign company and (or) permanent establishment of a controlled foreign company; 3) the ratio of passive income to the total amount of income of each controlled foreign company or a permanent establishment of a controlled foreign company, in the context of each type of passive income and the amounts included in the total amount of income, indicating the registration number of the customer in the country of residence (in case of application of passage eleven of part one of paragraph 2 of this Article); 4) the loss of each controlled foreign company or a permanent establishment of a controlled foreign company that arose in two periods consecutively preceding the reporting period, indicating the amounts and year of the loss (in case of application of passage twelve of part one of paragraph 2 of this Article); 5) each type of income and expense excluded from the total amount of income or financial profit before taxation of a controlled foreign company or a permanent establishment of a controlled foreign company, broken down by amounts (in case of application of subparagraph 9-1) of paragraph 4 of Article 294 of this Code or part two of paragraph 3 of this Article); 6) financial profit (loss) for the reporting period of each subsidiary (associated, joint) organization, consolidated in the consolidated financial profit (consolidated loss) according to the consolidated financial statements of a controlled foreign company, broken down by amounts, names and registration numbers in the country of residence of subsidiaries (associated, joint) organizations (in case of application of part three of paragraph 3 of this Article); 7) financial profit (loss) for the reporting period of each subsidiary (associated, joint) organization upon its consolidation from the consolidated financial profit (consolidated loss) according to the consolidated financial statements of the parent company for the reporting period, which is subject to increase (decrease) by the amount of financial profit ( losses) from intra-group transactions when they are excluded during consolidation, broken down by amounts, names and registration numbers in the country of residence of subsidiaries (associated, joint) organizations (in case of application of part four of paragraph 3 of this Article); 8) bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company, indicating the total amount of money received for the reporting period, broken down by bank account numbers, the name of a financial organization and its geographical location (names of states (territories) (in case of application of paragraph 3- 1 of this Article); 9) receipt of money to the bank accounts of a controlled foreign company or a permanent establishment of a controlled foreign company during the reporting period from other bank accounts of this controlled foreign company or its permanent establishment (internal and interbank money transfers) indicating the numbers of bank accounts, amounts and dates of transactions (in case of application of paragraph 3-1 of this Article); receipt and (or) return of borrowed funds, with the exception of interests on loans and penalties, fines, indicating the numbers of bank accounts, amounts and dates of transactions (in case of application of paragraph 3-1 of this Article); receipt of erroneously credited money, subject to return in the current tax period (in case of application of paragraph 3-1 of this Article); receipt of money as a contribution to the authorized capital, indicating the numbers of bank accounts, amounts and dates of transactions (in case of application of paragraph 3-1 of this Article); 10) incomes and expenses of each branch of a controlled foreign company, included in the financial profit of a controlled foreign company, indicating the business identification numbers of such branches (in case of application of subparagraph 1) of part one of paragraph 4 of this Article); 11) income from the provision of services (performance of works) in the Republic of Kazakhstan without the formation of a permanent establishment of a controlled foreign company in the context of amounts and customers, indicating business identification numbers and (or) individual identification numbers (in case of application of subparagraph 2) of part one of paragraph 4 of this Article); 12) the structure of receipt of dividends by a controlled foreign company, reflecting the distribution of such dividends from the original source (in case of application of subparagraphs 3), 4), 5), 9) and 10) of part one of paragraph 4 of this Article). For the purposes of part one of this subparagraph, the structure must contain the name of persons other than individuals, and also contain the following information about each participant in the structure: amounts and periods of distribution of dividends; registration numbers in the country of residence; the amount of financial profit for the periods in which dividends are distributed; 13) incomes in the form of remuneration, royalties from sources in the Republic of Kazakhstan in the context of amounts and names of residents of the Republic of Kazakhstan who paid incomes, indicating business identification numbers and (or) individual identification numbers (in case of application of subparagraphs 6) and 8) of part one paragraph 4 of this Article, in relation to incomes in the form of remuneration, royalties); 14) income in the form of value added in the context of amounts, names and assets sold, including those located in the Republic of Kazakhstan, indicating registration numbers in the country of residence (in case of application of subparagraphs 6), 7) and 8) of part one of paragraph 4 of this Article, in relation of income in form of value added); 15) in case of application of paragraph 4 of Article 303, paragraph 2 of Article 359 and paragraph 2 of Article 638 of this Code: the amount of payment in the foreign state in which a controlled foreign company and (or) a permanent establishment of a controlled foreign company is registered, foreign income tax on the financial profit of a controlled foreign company and (or) a permanent establishment of a controlled foreign company; withholding and transfer to the budget of a foreign state (foreign states) of tax at the source of payment from income (incomes) included in financial profit before taxation of a controlled foreign company and (or) a permanent establishment of a controlled foreign company; inclusion in financial profit before taxation of income (incomes) taxed at the source of payment. 12. Is excluded by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2020). 13. Failure to include in the taxable income of a resident legal entity or the annual income of a resident individual of the financial profit from a tax declaration of a controlled foreign company or financial profit of a permanent establishment of a controlled foreign company subject to taxation in the manner specified in this article or understatement of the amount of such financial profit of a controlled foreign company or a permanent establishment of a controlled foreign company in the resident’s tax declaration is punishable by the laws of the Republic of Kazakhstan. 14. Is excluded by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2020).
15. The resident is not held liable and is exempt from the accrual of a penalty provided that all of the following requirements are met: 1) if pursuant to the exchange of information with the competent or authorized body of a foreign state in accordance with the international treaty, based on the data available to the authorized body in accordance with paragraph 16 of this article, the authorized body received the following information: on a resident’s ownership of participatory interests directly or indirectly, or constructively or if a resident has direct or indirect, or constructive control in a controlled foreign company; on the effective income tax rate; on financial profit before tax of a controlled foreign company or permanent establishment of a controlled foreign company; 2) if it is impossible for a resident to obtain the information specified in subparagraph 1) of part one of this paragraph on his/her own; 3) if a resident submits to the relevant tax authority a statement of participation (control) in a controlled foreign company and a corporate or individual income tax declaration for a previous and (or) reporting taxable period (periods), including financial income of a controlled foreign company or financial profit of a permanent establishment of a controlled foreign company subject to taxation in the taxable income of a resident legal entity or annual income of a resident individual, within the period specified in a tax authority’s notification. The impossibility to obtain information is understood to mean the combination of the following conditions: 1) sending requests by a resident more than once independently and (or) through a controlled person to a controlled foreign company and not receiving answers to their requests regarding the size of the participation share or control in a controlled foreign company and (or) submission of approved financial statements and (or) audited financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company for the relevant period(s); 2) the lack of information on financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company on Internet resources, in the media and other sources of information because of non-publicity of a controlled foreign company. 16. If it is impossible for a resident to obtain information on his own, the resident shall have the right to apply with a request to the authorized body to send a request to the competent or authorized body of a foreign state with which the Republic of Kazakhstan has an international treaty, in terms of obtaining from him the following information and (or) documents: 1) on the size of the resident’s participatory interest or the resident’s control in a controlled foreign company; 2) on the effective tax rate for the profits of a controlled foreign company or a permanent establishment of a controlled foreign company for the relevant period (periods) (if necessary); 3) on financial profit before tax of a controlled foreign company or permanent establishment of a controlled foreign company for the relevant period (periods) (if necessary); 4) on financial statements of an audited controlled foreign company or a permanent establishment of an audited controlled foreign company for the relevant period (periods). To his/her/its application to the authorized body, a resident attaches information on a controlled foreign company disclosing all the involved controlled persons through which indirect or constructive participation or indirect or constructive control is exercised. The resident may also attach copies of requests sent to a controlled foreign company on his/her/its own or through a controlled person for the provision of information and (or) documents specified in this paragraph by a controlled foreign company. 17. When exercising tax control, a tax authority shall have the right to request the audited financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company from a resident. The resident shall be obliged to submit audited financial statements (with mandatory translation into Kazakh or Russian) within two hundred and fifty calendar days from the date of sending the request. Upon receipt of the audited financial statements, the tax authority shall have the right to recalculate the financial profit of a controlled foreign company or a permanent establishment of a controlled foreign company if there are discrepancies with the approved financial statements. If audited financial statements are not submitted after the expiration of the period specified in part two of this paragraph, the tax authority shall have the right to recalculate the financial profit of a controlled foreign company or a permanent establishment of a controlled foreign company in the manner prescribed by paragraph 3-1 of this Article. Footnote. Article 297 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2020); dated 11.07.2022 No. 135-VII (shall be enforced from 01.01.2023); Download 0.79 Mb. Do'stlaringiz bilan baham: 
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