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

Article 64. Fulfillment of tax obligations of a legal entity in case of reorganization through separation

1. A legal entity shall, within three business days from adopting a resolution on reorganization through separation, notify thereof a tax authority at its location in writing.

A legal entity under reorganization through separation, within three business days from the approval of a separation balance sheet, submits to a tax authority at its location all of the following documents:

1) a tax application for a tax audit;

2) liquidation tax returns.

2. Liquidation tax returns are drawn up by types of taxes, payments to the budget and social welfare payments for which a legal entity under reorganization is a payer and (or) a tax agent, for the period from the beginning of a taxable period, within which a tax application for a tax audit was submitted, until the date of submission of such an application.

In the event that next scheduled tax returns are due for filing after liquidation tax returns, such next scheduled tax returns shall be filed on or before the date of filing liquidation tax returns.

3. Payment of taxes, payments to the budget and social welfare payments entered into liquidation tax returns shall be made by a legal entity under reorganization within ten calendar days from the day of filing liquidation tax returns with a tax authority.

In the event that the payment of taxes, payments to the budget and social welfare payments entered into tax returns filed before liquidation tax returns is due after the expiration of the deadline specified in part one of this paragraph, payment (transfer) is made within ten calendar days from the day of filing liquidation tax returns.

4. A tax authority must initiate a tax audit within twenty business days after receiving a tax application of a legal entity under reorganization.

5. After the completion of a tax audit in the course of reorganization by separation, a legal entity under reorganization shall submit a separation balance sheet to a tax authority at its location.

If a legal entity under reorganization has amounts of taxes, payments to the budget and penalties paid in excess, the said amounts shall be offset against the tax debt of the legal entity under reorganization in accordance with the procedure set forth in Article 102 of this Code.

In the event that a legal entity under reorganization has amounts of taxes, payments to the budget and penalties paid erroneously, the said amounts are subject to offset in accordance with the procedure set forth in Article 103 of this Code.

If a legal entity under reorganization has no tax debt:

1) erroneously paid amounts of taxes, payments to the budget and penalties are subject to return to its successor (successors) in proportion to the share in the assets obtained by it (them) in the course of reorganization in accordance with the procedure set forth in Article 103 of this Code;

2) amounts of taxes, payments to the budget and penalties paid in excess are subject to return to its successor (successors) in proportion to the share in the assets obtained by it (them) in the course of reorganization in accordance with the procedure set forth in Article 101 of this Code;

3) amounts of customs duties, taxes, customs charges and penalties levied by the customs authorities paid to the budget in excess (erroneously) are refunded to its successor (successors) in proportion to the share in the assets obtained by it (them) in the course of reorganization in accordance with the procedure established by customs legislation Republic of Kazakhstan;

4) amounts of fines paid in excess (erroneously) shall be returned to its successor (successors) in proportion to the share in the assets obtained by it (them) in the course of reorganization in accordance with the procedure set forth in Article 106 of this Code.

A legal entity under reorganization submits the documents specified in this paragraph within three business days from the completion of a tax audit provided all of the following requirements are met:

1) absence of tax debt, arrears in social welfare payments;

2) absence of amounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously);

3) absence of unfulfilled tax application for offsetting and (or) refunding amounts of customs duties, taxes, customs charges and penalties levied by customs authorities paid in excess (erroneously).

In the event of tax debts, arrears in social welfare payments, amounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously), a legal entity under reorganization shall submit the documents specified in this paragraph within three business days from the date, whichever comes last,:

1) of the payment of tax debt, arrears in social welfare payments;

2) of refund of amounts of taxes, payments to the budget, penalties and fines paid in excess (erroneously);

3) of refund of amounts of customs duties, taxes, customs charges and penalties levied by customs authorities paid in excess (erroneously).

6. A tax authority shall, within ten business days from the receipt of information from national registers of identification numbers, transfer the balance of business accounts of a separated legal entity to a tax authority at the location of newly established legal entities on the basis of a separation balance sheet.

7. The fulfillment of a tax obligation of a legal entity under reorganization is imposed on its successor (successors), except for filing liquidation tax returns.

8. A successor (successors), as well as participatory interest of the successor (successors) with respect to the payment of the tax debt of a reorganized legal entity, is identified in accordance with the civil legislation of the Republic of Kazakhstan.

4. Reorganization of a legal entity is not a ground for changing deadlines for the fulfillment of its tax obligation to pay taxes, payments to the budget by this legal entity‘s successor (successors).