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

Article 145. Types of tax audits

1. Tax audits are divided into the following types:

1) periodic tax audits based on risk assessment;

2) unscheduled tax audits.

2. Periodic tax audits based on risk assessment are audits appointed by tax authorities in relation to taxpayers (tax agents) based on the tax reporting analysis results, information from authorized state bodies, as well as information obtained from official and open information sources on the activities of taxpayers ( tax agents).

The ground for appointing periodic tax audits based on risk assessment is a semi-annual schedule approved by the authorized body’s decision.

It is not allowed to make changes in the semi-annual inspection schedules.

The authorized body shall post a semi-annual summary schedule of inspections on the Internet resource by December 25 of the year preceding the year of inspections and by May 25 of the current calendar year.

3. Unscheduled tax audits are audits not specified in paragraph 2 of this article, including those carried out:

1) pursuant to a tax application or complaint of the taxpayer (tax agent), also:

in connection with reorganization through separation or liquidation of a resident legal entity, structural unit of a non-resident legal entity;

in connection with termination of activity in the Republic of Kazakhstan through a permanent establishment by a non-resident legal entity;

in connection with termination of activity of an individual entrepreneur;

in connection with deregistration for VAT;

in connection with a taxpayer’s (tax agent’s) complaint about an audit findings report;

2) pursuant to a taxpayer’s tax application to confirm the reliability of excess VAT amounts submitted in connection with application of paragraphs 1 and 2 of Article 432 of this Code.

In this case, tax applications specified in this subparagraph may be submitted before the date:

of accepting of buildings and structures into operation for industrial purposes;

of the beginning of the export of minerals extracted under a relevant subsoil use contract;

3) on the grounds provided for by the Criminal Procedure Code of the Republic of Kazakhstan;

4) in case of failure by the taxpayer (tax agent) to notify the tax authorities about the elimination of violations identified in the in-house audit with an average risk degree, in the manner prescribed by Article 96 of this Code.

The provision of this subparagraph shall not apply during the period specified in paragraph 4-1 of Article 96 of this Code, and during the period of consideration by a higher tax authority and (or) an authorized body or court of a complaint against a decision specified in paragraph 4 of Article 96 of this Code;

5) due to the subsoil use contract expiration, except in cases of renewal of subsoil use right to the licensed subsoil use regime;

6) on issues of determining mutual settlements between a taxpayer (tax agent) and its debtors in accordance with the tax legislation of the Republic of Kazakhstan;

7) at the request of a taxpayer in VAT declaration to confirm the reliability of excess VAT amounts claimed for refund;

8) pursuant to a non-resident’s tax application for the return of income tax from the budget in connection with application of the provisions of the international treaty governing the avoidance of double taxation and the prevention of tax evasion, and also in connection with the request of a non-resident to reconsider such a tax application;

9) on performance of duties established by the tax legislation of the Republic of Kazakhstan by banks and organizations carrying out certain types of banking operations, as well as of other laws of the Republic of Kazakhstan, control over the execution of which is assigned to the tax authorities;

10) on determination of a tax obligation for an action (actions) on the issuance of an invoice, which a court recognizes as committed without actual performance of works, rendering of services, shipment of goods;

11) on the basis of a decision of the authorized body;

12) on the basis of a decision of the tax authority in the cases established by paragraph 5 of Article 142, paragraph 2 of Article 144 of this Code and paragraph 7 of this article.

4. Unscheduled tax audits specified in paragraph 3 of this article may be conducted with respect to an earlier audited time period.

In addition to the above, unscheduled (comprehensive or thematic) tax audits for an earlier audited time period are conducted on the basis of a decision of the authorized body, except for tax audits conducted:

pursuant to an application of the taxpayer (tax agent);

at the request for the return of excess VAT amounts indicated in VAT declaration;

based on the taxpayer’s tax application for confirmation of the reliability of excess VAT amounts submitted in connection with the application of paragraphs 1 and 2 of Article 432 of this Code;

on the grounds provided for by the Criminal Procedure Code of the Republic of Kazakhstan;

in connection with the taxpayer’s (tax agent’s) complaint about an audit findings report.

5. If a taxpayer (tax agent) files a complaint about an audit findings report with a court, unscheduled comprehensive and (or) thematic audits on the issue complained of for an earlier audited time period are not conducted until a final and binding court judgment.

6. For tax periods in which the taxpayer was on horizontal monitoring, a tax inspection shall not be carried out, with the exception of:

counter inspection;

tax inspection conducted at the request of the taxpayer (tax agent);

tax inspection conducted on the grounds provided by the Criminal Procedural Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan "On the Prosecutor's Office";

tax audits conducted in connection with the complaint of the taxpayer (tax agent) to the notification of the audit results.

7. In case of changing the time period to be audited by issuing an additional prescription and completing a tax audit for the period being audited before expiration of the limitation period set forth in Article 48 of this Code, a tax authority, on the grounds that caused the previous tax audit, may schedule a tax audit for an unaudited taxable period earlier specified in the prescription before the change of the period being audited.

Footnote. Article 145 as amended by the Law of the Republic of Kazakhstan dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication); No. 241-VI dated 02.04.2019 (shall be effective since 01.01.2020); dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).

Clause 2. Procedure and time limits for tax audits