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

Article 768. Tax rate

Unless otherwise provided by this article, the alternative subsoil use tax shall be calculated at the following rates issuing from the world oil price calculated as specified in paragraph 3 of Article 741 of this Code:

No.	World price	Rate, %
1	2	3
1.	Up to $ 50 per barrel incl.	0
2.	Up to $ 60 per barrel incl.	6
3.	Up to $ 70 per barrel incl.	12
4.	Up to $ 80 per barrel incl.	18
5.	Up to $ 90 per barrel incl.	24
6.	Up to $ 100 per barrel incl.	30
7.	Up to $ 110 per barrel incl.	32
8.	Up to $ 120 per barrel incl.	34
9.	Up to $ 130 per barrel incl.	36
10.	Up to $ 140 per barrel incl.	38
11.	Up to $ 150 per barrel incl.	40
12.	Over $ 150 per barrel	42

Given the specifics provided for in paragraph 4 of Article 722-1 of this Code, under contracts for the exploration and production or production of hydrocarbons on complex offshore projects in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use, the alternative subsoil use tax shall be calculated at the following rates based on the world oil price calculated as specified in paragraph 3 of Article 741 of this Code:

No.	World price	Rate, %
1	2	3
1.	Up to $ 50 per barrel incl.	0
2.	Up to $ 60 per barrel incl.	2
3.	Up to $ 70 per barrel incl.	4
4.	Up to $ 80 per barrel incl.	6
5.	Up to $ 90 per barrel incl.	8
6.	Up to $ 100 per barrel incl.	10
7.	Up to $ 110 per barrel incl.	10,7
8.	Up to $ 120 per barrel incl.	11,3
9.	Up to $ 130 per barrel incl.	12,0
10.	Up to $ 140 per barrel incl.	12,7
11.	Up to $ 150 per barrel incl.	13,3
12.	Over $ 150 per barrel	14,0

Footnote. Article 768 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).



Article 769. Taxable period

1. A taxable period for an alternative subsoil use tax is a calendar year.

2. If a subsoil use contract was concluded within a calendar year, the first taxable period for calculating an alternative subsoil use tax under such a contract is the time period running from the date the subsoil use contract enters into force until the end of the calendar year.

3. If a subsoil use contract expires before the end of a calendar year, the last taxable period for calculating an alternative subsoil use tax under such a contract is the time period running from the start of the calendar year until the day of expiration of validity of the subsoil use contract.

4. If the validity of a subsoil use contract that entered into force after the start of a calendar year expired before the end of this calendar year, the taxable period for calculating the alternative subsoil use tax under such a contract is the time period running from the date the subsoil use contract enters into force until the day of expiration of validity of the subsoil use contract.
Article 770. Deadline for tax payment

An alternative subsoil use tax is paid to the state budget at the location of the taxpayer within ten calendar days of the deadline for the submission of the declaration.
Article 771. Tax declaration

An alternative subsoil use tax declaration is submitted by a taxpayer to the tax authority at the location on or before March 31 of a year following a reporting taxable period.
Chapter 88. THE ORDER FOR FULFILLMENT OF TAX OBLIGATIONS FOR MINERAL EXTRACTION TAX, EXPORT RENT TAX ON HYDROCARBONS, ROYALTIES AND SHARE OF THE REPUBLIC OF KAZAKHSTAN WITHIN IN-KIND PRODUCTION SHARING
Article 772. The order for fulfillment of the tax obligation for royalties and share of the Republic of Kazakhstan within in-kind production sharing

1. The fulfillment of the tax obligation for cash payment of royalties and share of the Republic of Kazakhstan within production sharing can be temporarily replaced by in-kind payment, in full or in part, provided all of the following requirements are met:

1) production sharing agreements, subsoil use contracts, approved by the President of the Republic of Kazakhstan, specified in Article 722 of this Code, provide for in-kind transfer of minerals by a subsoil user in order to fulfill its tax obligation for the payment of royalties and (or) share of the Republic of Kazakhstan within production sharing;

2) by its decision, the Government of the Republic of Kazakhstan appoints a recipient on behalf of the state of minerals transferred by a subsoil user to fulfill its tax obligation in kind.

2. To fulfill its tax obligation in kind:

1) a subsoil user transfers minerals to the recipient on behalf of the state in accordance with the procedure and within the time limits established by a production sharing agreement and (or) a subsoil use contract approved by the President of the Republic of Kazakhstan, specified in Article 722 of this Code, or by another document provided for by such an agreement and (or) a contract;

2) the recipient on behalf of the state sells minerals on its own or through a person authorized thereto by the recipient on behalf of the state, in compliance with the legislation of the Republic of Kazakhstan on transfer pricing.

Minerals received as in-kind fulfillment of the obligation by a subsoil user are sold in keeping with the principles of:

legality;

transparency;

certainty;

conscientiousness;

fairness;

profit maximization;

minimization of associated costs;

3) the recipient on behalf of the state or a person, authorized thereto by the recipient on behalf of the state, determines and transfers to the state budget current payments in the amount calculated in accordance with the procedure for in-kind fulfillment of the obligation determined by the Government of the Republic of Kazakhstan;

4) the subsoil user and the recipient on behalf of the state submit to the tax authorities at the location the declaration (calculation of current payments) of in-kind fulfillment of the tax obligation in the manner prescribed by this Code and in the form established by the authorized body.

3. A taxable period for a subsoil user to fulfill the tax obligation for taxes in kind is a calendar quarter.

For the recipient on behalf of the state, a taxable period for the payment of money received from actual sale of minerals transferred by the subsoil user to fulfill its tax obligation in kind is a calendar year.

4. The determination of the volume of minerals transferred to fulfill the tax obligation in kind, its calculation in monetary terms, as well as their sale shall be carried out in accordance with the procedure for in-kind fulfillment of the obligation determined by the Government of the Republic of Kazakhstan.

5. A subsoil user submits to the tax authority at its location a declaration of in-kind fulfillment of a tax obligation on or before the 15^th day of the second month following a taxable period.

6. The recipient on behalf of the state shall submit to the tax authority at its location:

1) the calculation of current payments for in-kind fulfillment of the tax obligation on or before the 15^th day of the second month following a taxable period.

Except for cases provided for in paragraph 3 of Article 210 of this Code, it is not allowed to submit the calculation of current payments for in-kind fulfillment of the tax obligation, to introduce amendments and additions to it, and also to withdraw it after the deadline set for submitting the declaration specified in subparagraph 2) of this paragraph;

2) a declaration of in-kind fulfillment of the tax obligation for a calendar year on or before March 31 of a year following a reporting calendar year.

The recipient on behalf of the state does not submit corporate income tax and VAT declarations in respect of an activity related to in-kind fulfillment of the tax obligation.

7. Within a taxable period, quarterly, the recipient on behalf of the state determines current payments to pay taxes in kind and transfers them to the state budget on or before the 25^th day of the second month following a taxable period, except for current payments specified in part two of this paragraph.

Current payments on minerals sold in the first quarter, received for previous taxable periods are to be indicated in the additional calculation of current payments in kind for the fourth quarter of a previous calendar year and are transferred to the state budget within the time period established by paragraph 8 of this article.

Current payments are transferred to the state budget in the amount of money received in a relevant taxable period from the sale of minerals, less the expenses for such sales, subject to reimbursement in accordance with the procedure for in-kind fulfillment of the obligation determined by the Government of the Republic of Kazakhstan.

8. Within ten calendar days of the deadline for submitting the declaration of in-kind fulfillment of the tax obligation, the recipient on behalf of the state shall pay the money received from the sale of minerals transferred within a previous calendar year by a subsoil user to fulfill its tax obligation in kind. Such payment shall be in the currency specified in a relevant production sharing agreement (contract) and (or) a subsoil use contract approved by the President of the Republic of Kazakhstan, indicated in Article 722 of this Code.

The amount of the in-kind tax obligation for a calendar year is determined in accordance with the procedure for in-kind fulfillment of the obligation determined by the Government of the Republic of Kazakhstan.

9. When making the payment (transferring money), payment documents shall include the name and identification number of the recipient on behalf of the state.

10. An overdue tax obligation shall be determined in the size of the physical volume of minerals under an overdue tax obligation converted into in monetary value.

11. The physical volume of minerals under an overdue tax obligation for a subsoil user is defined as the difference between the physical volume of minerals to be transferred for a taxable period and the physical volume of minerals actually transferred for a taxable period.

The physical volume of minerals is converted into monetary value using conditional prices determined in accordance with production sharing agreements (contracts), a subsoil use contract approved by the President of the Republic of Kazakhstan provided for in Article 722 of this Code.

In case of no procedure for determining conditional prices in production sharing agreements (contracts), a subsoil use contract approved by the President of the Republic of Kazakhstan as provided for in Article 722 of this Code, such conditional prices shall be determined in accordance with the procedure for in-kind fulfillment of the obligation determined by the Government of the Republic of Kazakhstan.

12. The physical volume of minerals under an overdue tax obligation for a calendar year for a recipient on behalf of the state is defined as difference between the physical volume of minerals, received to fulfill the tax obligation in kind, to be sold for a reporting calendar year, calculated in accordance with the procedure for in-kind fulfillment of the obligation, determined by the Government of the Republic of Kazakhstan, and the physical volume of minerals actually sold in a reporting calendar year.

The physical volume of minerals under an overdue tax obligation for a calendar year for the recipient on behalf of the state is converted into monetary value using the weighted average actual price for a reporting calendar year, but not below the average weighted conditional price provided for in paragraph 11 of this article.