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

Article 722-1. Features of the fulfillment of a tax obligation under contracts for exploration and production or production of hydrocarbons on complex projects

1. Under contracts for the exploration and production or production of hydrocarbons on complex projects, the provisions of paragraph 6 of Article 258, paragraph 2-1 of Article 268, paragraph 7-1 of Article 271, paragraph 4-4 of Article 293, subparagraph 5) of the first part of paragraph 3 of Article 517 , parts two of paragraph 2 of Article 767 and part two of Article 768 of this Code shall be applied in accordance with the tax legislation of the Republic of Kazakhstan effective as of the date of signing the relevant subsoil use contract.

2. In the event of cancellation of taxes, payments to the budget, for which the fulfillment of tax obligations is carried out in accordance with paragraph 1 of this article, subsoil users under contracts for exploration and production or production of hydrocarbons on complex projects (with the exception of onshore gas projects) shall continue to fulfill tax obligations on relevant taxes and payments in accordance with the tax legislation of the Republic of Kazakhstan, effective as of the date of signing the relevant contract, until expiry of such contract or introduction of appropriate amendments and additions to it by consent of the parties.

3. In the event of termination (including in the event of early termination) of the contract for exploration and production or production of hydrocarbons on complex projects (with the exception of onshore gas projects), the consequences established by the relevant contract shall apply. At the same time, the subsoil user under such contracts shall not pay the amounts of taxes, payments not paid to the budget due to the exemptions, benefits or other exemptions granted under the contract. After the termination (including in the event of early termination) of a contract for the exploration and production or production of hydrocarbons on complex projects, the tax obligations shall be fulfilled in accordance with the tax legislation of the Republic of Kazakhstan effective as of the date the tax liability arises, starting from the tax period following the date of termination of such a contract validity.

4. The provisions of subparagraph 1) of part one of paragraph 2 and paragraph 6 of Article 258, paragraph 2-1 of Article 268, paragraph 7-1 of Article 271, paragraph 4-4 of Article 293 and subparagraph 5) of part one of paragraph 3 of Article 517, part two of paragraph 2 of Article 767 and part two of Article 768 of this Code shall be applied by a subsoil user from the registration date of the contract for exploration and production or production of hydrocarbons on complex projects, and for subsoil use contracts concluded before December 31, 2022 - from the date of registration of an addition to the exploration contract and extraction or production of hydrocarbons, which provides for restatement of such a contract in a new edition in accordance with the standard contract for the exploration and production or production of hydrocarbons on complex projects, before expiration of twenty calendar years from the date of commencement of the export of minerals produced under the relevant subsoil use contract.

Footnote. Chapter 82 shall be supplemented by Article 722-1 pursuant to the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).