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

Article 48. Periods of limitation of actions on tax obligation and claim

1. The limitation period for a tax obligation and claim shall be a period of time during which:

1) the tax authority has the right to calculate, charge or revise the calculated, assessed amount of taxes and payments to the budget;

2) a taxpayer (tax agent) is obliged to submit tax reports, has the right to make changes and additions to tax reports, to withdraw tax reports;

3) the taxpayer, (tax agent) has the right to demand offset and (or) refund of taxes and payments to the budget, penalty interest.

2. Unless otherwise provided by this article, the limitation period shall be three years.

3. The limitation period shall be five years, taking into account the specifics established by this article, for the following categories of taxpayers:

1) large businesses classified as such a category of entities in accordance with the Entrepreneur Code of the Republic of Kazakhstan;

2) carrying out activities in accordance with the subsoil use contract;

3) residents of the Republic of Kazakhstan who meet the terms of Chapter 30 of this Code.

4. The course of the limitation period shall begin after the end of the relevant tax period, except for the cases provided for by paragraphs 5, 6, 7, 8 and 12 of this article.

5. The taxpayer shall have the right to calculate, and the tax authority shall have the right to calculate and charge the amount of taxes:

1) when applying Chapter 80 and 80-1 of this Code for taxes specified in the investment contract providing for the implementation of an investment priority project, or an investment agreement - during the validity period of such a contract or agreement and five years from the expiration date or other termination of an investment contract or agreement;

2) when applying subparagraph 4) of paragraph 1 of Article 288 of this Code - during the training period of an individual and five years from the date of completion of the training of an individual.

6. For taxpayers operating in accordance with a subsoil use contract, the tax authority, during the validity term of the subsoil use contract and five years after the subsoil use contract expiration, shall have the right to assess or revise the calculated, accrued amount of the following taxes, payments to the budget:

excess profit tax;

the share of the Republic of Kazakhstan under the production sharing;

taxes and payments to the budget, in whose calculating methodology one of the following indicators is used: internal rate of return (IRR) or internal profit rate or R-factor (profitability indicator).

6-1. The taxpayer has the right to calculate, and the tax authority has the right to calculate and accrue the amount of taxes and payments to the budget for the period of validity of the agreement on investment obligations concluded in accordance with the Entrepreneurial Code of the Republic of Kazakhstan, during the period of validity of such an agreement and five years from the date of expiration or other termination of the agreement on investment obligations, starting from January 1 of the year following the year of termination of such an agreement.

7. The course of the limitation period shall begin in the following cases:

1) application of paragraph 1 of Article 432 of this Code on the tax obligation and the requirement to return the amount of excess value added tax for the period of construction of buildings and structures for industrial purposes - after the end of the tax period in which such buildings and structures were first put into operation on the territory of the Republic of Kazakhstan;

2) application of paragraph 2 of Article 432 of this Code on the tax obligation and the requirement to return the amount of excess value added tax for the period of exploration and development of the deposit - after the end of the tax period, which accounts for the beginning of the export of minerals extracted under the relevant contract for subsoil use, with the exception of widespread minerals, groundwater and therapeutic mud.

If the export was made before January 1, 2016, the limitation period shall begin on January 1, 2016;

3) the return and (or) offset in accordance with Article 104 of this Code of the confirmed amount of the excess value added tax specified in Article 432 of this Code - after the end of the tax period in which the authenticity of the amount of the excess value added tax presented for the return has been confirmed, including on the basis of appealing the results of the audit in accordance with the legislation of the Republic of Kazakhstan.

8. For the purposes of calculating or revising the calculated, assessed amount of value added tax specified in subparagraphs 1) and 2) of paragraph 7 of this article, the limitation period shall begin after the end of the tax period in which the taxpayer submits a value added tax declaration with demand for the refund of the excess value added tax.

9. The limitation period shall be extended:

1) for one calendar year - in the case of submission by a taxpayer (tax agent) of additional tax reporting for the period for which the limitation period established by paragraphs 2 and 3 of this article expires in less than one calendar year, in terms of the calculation and (or) revision of the calculated amount of taxes and payments to the budget;

2) for three calendar years - if the taxpayer (tax agent) submits additional tax returns with amendments and additions regarding the transfer of losses for the period after which the limitation period established by paragraphs 2 and 3 of this article expires in less than one calendar year , regarding the accrual and (or) revision of the calculated amount of corporate income tax to the budget;

3) prior to the execution of the decision made based on the results of consideration of the complaint (application), in the following cases:

appeals by a taxpayer (tax agent) in the manner prescribed by the legislation of the Republic of Kazakhstan, of audit findings report, notification of horizontal monitoring findings, as well as actions (inaction) of officials of tax authorities - in the disputed part;

consideration of a non-resident's tax application for a refund of income tax from the budget on the basis of an international agreement;

appeals by a non-resident in the manner determined by the legislation of the Republic of Kazakhstan against a decision of a tax authority made upon the results of consideration of a tax application for a return of income tax from the budget on the basis of an international agreement

appeal by a non-resident of a decision of an authorized body made following the results of consideration of a complaint by a non-resident against the decision of a tax body specified in paragraph four of this sub-paragraph;

4) before the execution of the decision of the authorized body and (or) the competent body of a foreign state, adopted as a result of the mutual agreement procedure, in the event that the authorized body carries out the mutual agreement procedure in accordance with Article 221 of this Code;

5) prior to the execution of the notification on the elimination of violations revealed by the tax authorities based on the results of an in-house audit, sent and delivered before the expiration of the limitation period, in terms of the violations identified;

6) from the date of delivery of the recommendation based on the horizontal monitoring findings until execution of the decision based on the horizontal monitoring findings;

7) if the investor initiated proceedings in international arbitration, then the tax authority has the right to charge or revise the calculated, assessed amount of taxes and payments to the taxpayer's budget, in respect of which the investor initiated proceedings, for the period from the moment of the period contested by the investor and until the final decision on to this arbitration - within five years after the completion of such arbitration;

8) for three calendar years from the date of completion of the provision of services for collection activities in respect of debt under a debt collection agreement established by the legislation of the Republic of Kazakhstan, in terms of the calculation and (or) revision of the calculated, assessed amount of taxes and payments to the budget of the taxpayer carrying out collection activities.

10. The limitation period regarding the accrual or revision of the calculated, assessed amount of taxes and payments to the budget shall be suspended for the period:

preparation and submission of a written objection by a taxpayer (tax agent) to a preliminary tax audit act and its consideration by the tax authority in the manner determined by the legislation of the Republic of Kazakhstan;

sending requests and receiving documents and (or) information on them during a tax audit in accordance with the legislation of the Republic of Kazakhstan on transfer pricing. At the same time, the total limitation period regarding the revision of the calculated, assessed amount of taxes and payments to the budget, taking into account its suspension, cannot exceed seven years;

time from the date of completion of the tax audit until the completion of criminal proceedings in the case of a tax audit conducted as part of a pre-trial investigation.

11. The accrual or revision of the calculated amount of taxes and payments to the budget for the action (actions) on the issuance of an invoice, performed (committed) with a private enterprise entity without the actual shipment of goods, performance of work, provision of services, shall be carried out by the tax authority for the tax obligation and ( or) a demand on the basis of a decision, sentence, or court ruling that has entered into legal force - within the limitation period.

12. An excessively (erroneously) paid amount of tax and payment to the budget, penalties shall be offset and (or) returned in the amounts paid during the current year and previous calendar years within the action limitation period established by paragraphs 2 and 3 of this article, except for the case established by Article 108 of this Code.

Footnote. Article 48 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (enforcement Art 2); dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).

Chapter 6. CHANGE OF DEADLINES FOR THE FULFILLMENT OF TAX OBLIGATION TO PAY TAXES AND (OR) FEES. GROUND FOR THE TAX OBLIGATION TERMINATION. INVESTMENT TAX CREDIT

Footnote. The title of Chapter 6 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021).