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

Article 734. The order and time limits for payment

1. Payment for reimbursement of historical costs shall be paid by the subsoil user from the start of production in the contract area (site) and the earliest of the following dates:

commercial discovery announcement;

transition to the period (stage) of production in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use;

issuance of a license for the extraction of minerals;

conclusion of a contract for the extraction of minerals.

The payment for reimbursement of historical costs shall be made to the budget at the location of the subsoil user in the following order:

1) if the total amount of payment for reimbursement of historical costs incurred by the state for the geological study of the contract area (subsoil plot) and exploration of deposits is an amount equal to or less than 10,000 times the monthly calculation index established by the law on the republican budget and effective on the date of conclusion confidentiality agreements, payment for reimbursement of historical costs shall be paid no later than April 10 of the year following the year in which the subsoil user began mining;

2) if the total amount of payment for reimbursement of historical costs incurred by the state for the geological study of the contract area (subsoil plot) and exploration of deposits is an amount exceeding 10,000 times the amount of the monthly calculation index established by the law on the republican budget and in force on the date of conclusion of the agreement on confidentiality, the payment for reimbursement of historical costs shall be paid by the subsoil user on a quarterly basis, no later than the 25th day of the second month following the reporting quarter, in equal installments over a period of duration not exceeding the term of the subsoil use contract, but not more than ten years in an amount equivalent to an amount of at least 2500 times the monthly calculation index established by the law on the republican budget and in force on the date of the conclusion of the confidentiality agreement, expt for the amount of the last share, which may be less than the amount equivalent to 2500 times the monthly calculation index established by the law on the republican budget and valid on the date of the conclusion of the confidentiality agreement.

With regard to subsoil use contracts concluded before January 1, 2009, under which a subsoil user started extracting minerals before January 1, 2009, if the amount of historical costs not paid to the budget as of January 1, 2009 is more than 10 000 times the amount of the monthly calculation index established as of January 1, 2009 by the law on the national budget, the payment to recover historical costs is paid by the subsoil user on a quarterly basis, on or before the 25^th day of the second month following a reporting year, in equal parts within a time period not exceeding the validity period of the subsoil use contract, but not more than ten years in an amount equivalent to that not less than 2 500 times the monthly calculation index established as of January 1, 2009 by the law on the national budget, less the amount of the last part, which may be less than the amount equivalent to that of 2 500 times the monthly calculation index established as of January 1, 2009 by the law on the national budget.

2. If the amount of historical costs incurred by the state on geological study of a contract area (subsoil plot) and exploration of mineral deposits is established in foreign currency by the state body of the Republic of Kazakhstan authorized thereto, then:

1) for the purposes of determining the total amount of the payment in tenge, in order to establish the procedure for paying the payment in accordance with this article, the amount of historical costs calculated by the state body of the Republic of Kazakhstan authorized thereto is recalculated in tenge at the market exchange rate set on the last business day preceding the 1^st day of a reporting quarter, in which the subsoil user started extraction after commercial discovery, and with regard to subsoil use contracts concluded before January 1, 2009, under which a subsoil user started extracting minerals before January 1, 2009 - the amount of historical costs not paid to the state budget as of January 1, 2009 is recalculated in tenge at the market exchange rate set on the last business day preceding January 1, 2009;

2) for the purposes of even distribution of the amount of historical costs in a foreign currency not paid to the state budget into the amounts of quarterly payments payable in accordance with subparagraph 2) of part one of paragraph 1 of this article, this amount of historical costs is recalculated as of the beginning of each calendar year in tenge at the market exchange rate set on the last business day preceding January 1 of such a calendar year.

3. Under subsoil use contracts for exploration of mineral deposits, which do not provide for their subsequent extraction, the payment to recover historical costs is not paid.

Footnote. Article 734 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall come into effect from 01.01.2021).