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

Article 101. General provisions

1. An amount of tax (except for VAT), payment to the budget, penalty paid (collected) in excess is a positive difference between an amount paid (collected) to the budget (less the offset and refunded one) and a calculated, assessed (less the reduced one) amount for a given type of tax (except for VAT), payment to the budget, penalty as of the date of the offset and (or) refund.

A VAT amount paid (collected) in excess is a positive difference between an amount paid (collected) to the budget (less the offset and refunded one) and a calculated, assessed (less the reduced one) amount of VAT for a taxable period with account of VAT settlements over previous taxable periods.

Paid amounts of registration fees, fees for issuing licenses to engage in certain types of activities, permission to use the radio frequency spectrum, a document confirming the residency of a foreigner or a stateless person who is an investment resident of the Astana International Financial Center, fees for placing an outdoor (visual) ) advertising, state duty – shall be deemed overpaid subject to confirmation by the relevant authorized state body through an electronic database and (or) on paper of the fact that he did not take actions (including as a result of the taxpayer's refusal to take actions before filing the relevant documents), for which such payments are required.

Paid amounts of a fee for forest uses are recognized as payments paid in excess, if a logging permit for forest use has not been used.

2. An amount of income tax to be returned to a non-resident taxpayer in accordance with Article 672 of this Code is also an amount of income tax paid in excess.

3. The tax authority shall offset and refund the overpaid (recovered) amount of tax, payment to the budget (excepting collections and fees that are not subject to offset and refund), penalties in national currency in the following order:

at the place of maintenance of personal accounts for a relevant tax, payment to the budget, penalty – based on the data of such personal accounts;

at the place of payments to the budget, on which personal accounts are not maintained, - on the basis of documents submitted by the taxpayer, issued by the relevant authorized state body or received through an electronic database and (or) on paper, confirming non-performance of actions for which payments to the budget are required.

4. The tax authority shall offset and refund the amount of tax, payment to the budget, penalty paid (collected) in excess within ten business days, calculated as follows:

1) in case of an offset and refund pursuant to a tax application - from the date of registration of such an application by tax authorities;

2) in case of an offset without an application - from the date an excess amount appeared in the taxpayer’s personal account.

A tax authority refunds an amount of tax, payment to the budget, penalty paid (collected) in excess to a bank account of a taxpayer pursuant to his/her/its tax application provided that he/she/it has no tax debts to the budget.

Given tax debts, a tax authority shall apply an amount of tax, payment to the budget, penalty paid in excess against current tax debts, which requires no tax application for offset.

If a taxpayer is a legal entity, an amount of tax, payment to the budget, penalty paid in excess applies against current tax debts of the legal entity and its structural units, which requires no tax application for offset.

The remaining amount of tax, payment to the budget, penalty paid in excess shall be refunded after the offset specified in this paragraph.

5. Not subject to:

1) offset is:

an amount of tax, payment to the budget, penalty paid (collected) in excess applied against tax debts of another taxpayer, except for an offset between a legal entity and its structural unit;

a paid state fee;

2) offset and refund is:

paid amount of a fee for vehicle transportation in the territory of the Republic of Kazakhstan, consular fees, fees for:

the use of land plots, the provision of a subsoil site by the state in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use on the basis of a license for exploration or extraction of solid minerals, the use of wildlife, the use of specially protected natural areas, except for cases of erroneous payment of such amounts;

an overpaid amount of excises for excisable goods subject to marking with excise stamps, except for cases of taxpayer’s termination of activity on the production of such goods and return of earlier received excise stamps to a tax authority under an acceptance certificate;

excessively paid (collected) amount of tax, fees for the use of land plots, use of surface water resources, negative impact on the environment - in the event of extension of the deadline for filing tax reports on such taxes, fees until the date of their submission;

the amount of the subscription bonus paid, excepting the case of declaring the auction for granting the right to subsoil use invalid due to breaking of the rules for its holding, established by the legislation of the Republic of Kazakhstan on subsoil and subsoil use, which influenced determination of the auction winner;

the amount of the fee paid for issuing a document confirming the residence of a foreign national or stateless person who is an investment resident of the ASTANA International Financial Center, excepting cases of erroneous payment of such amounts or refusal to issue a document confirming the residence of a foreign national or stateless person who is an investment resident of the ASTANA International financial center;

6. If the tax authority violates the deadline for offsetting and (or) refunding on the taxpayer’s tax application for the overpaid (over-collected) amount of tax, payment to the budget which were offset and (or) refunded after the deadline, then for each day of delay, the tax authority shall charge a penalty in favor of the taxpayer. The penalty is charged in the amount of 1.25 times the base rate of the National Bank of the Republic of Kazakhstan, effective as of each day of delay, starting from the day following the expiration of the offset and (or) return period, including the day of such offset and (or) return.

The accrued penalty amount is to be transferred to the taxpayer’s bank account indicated in the tax application, on the day of the offset and (or) refund of the amount of tax, payment to the budget, penalty paid (collected) in excess from budget revenues according to a corresponding budget classification code.

7. The procedure for the offset and (or) refund of an amount of tax, payment to the budget, penalty paid (collected) in excess is determined by the authorized body.

Footnote. Article 101 as amended by Law of the Republic of Kazakhstan No. 249-VI dated 19.04.2019 (shall be enforced since 01.08.2019); dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 02.01.2021 No. 402-VI (effective from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.07.2023).