Legislation Alert - April 2016

Main amendments to the legislation

1. Regarding changes in the Tax Code of the Republic of Kazakhstan (further - the "Tax Code")

   With the purpose to simplify licensing procedures the Law of the Republic of Kazakhstan (further - the "RoK") №479-V dated March 29, 2016 (further -the "Law") introduces the following changes to the certain articles of the Tax Code:

   paragraph 3 article 273 According to the new version of the paragraph 3 article 273 of the Tax Code, excess value added tax (further - the "VAT") confirmed by a tax audit shall be refunded within 155 calendar days from the date (including the extension period) a VAT declaration was filed for the tax period in which refund request was made.

   It shall be noted that previous version of the paragraph stipulated refund of excess VAT within 180 calendar days.

   paragraph 4 article 273 According to the amendments to the paragraph 4 article 273 of the Tax Code, payer of VAT generating turnover taxable at the zero rate that makes up no less than 70% of total taxable realization turnover for the tax period, shall receive a refund of excess VAT within 55 working days from the period when the VAT declaration incorporating the refund request was made.

   The previous version of the current paragraph stipulated that refund of excess VAT confirmed by a tax audit should have been made within 60 working days.

   The changes become effective from April 22, 2016.

   Regarding changes in relation to collection of charge for the placement of advertisement In accordance with the Law the changes are introduced to the chapter 78 of the Tax Code, according to which charge for the placement of outdoor (visual) advertising on vehicles was cancelled.

   The changes become effective from April 22, 2016.

2. Regarding increase of property tax

   Based on the information provided by the Taxpayers Association of Kazakhstan (further - the "TAP") the Law №432-V dated December 3, 2015 introduced new subparagraph 1-2 to the article 397 of the Tax Code.

   According to the amendments, during the appraisal of the object of the taxation by the taxpayer in accordance with the legislation on Appraisal Activities, market price that defined in valuation report will be the object of the taxation, and has to be no lower than the average book value determined in accordance with International Financial Reporting Standards (further - "IFRS") and the requirements of the legislation of the RoK on accounting and financial reporting.

   These changes become...