STATE REVENUE COMMITTEE

OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

PRESS RELEASE

From January 1, 2019 all taxpayers are categorized by classifying their activities as of low, medium or high risk

Taxpayers often have questions about the application of the risk management system (RMS), as well as about the criteria that are taken into account when applying the RMS.

According to Article 137 of the Tax Code, tax authorities analyze tax reporting data submitted by taxpayers (tax agents), information received from authorized state bodies, local executive bodies, authorized persons, as well as other documents and (or) information on taxpayer’s (tax agent’s) activities.

On the basis of the results of such an analysis, from January 1, 2019 all taxpayers (tax agents) are categorized by classifying their activities as of low, medium or high risk and differentiated application of tax administration measures is introduced.

The criteria for the degree of risk are confidential information, except for the criteria specified in paragraph 1 of Article 137 of the Tax Code. The procedure for applying the risk management system according to the criteria that are not confidential information was approved by the Order of the Minister of Finance of the Republic of Kazakhstan No.252 dated February 20, 2018 (Rules).

The criteria that are not confidential information:

•  «Tax burden»
•  «Average monthly salary per employee»
•  «Expenses and incomes reflected in tax reporting»
•  «Transactions with taxpayers having mutual settlements with persons deregistered from the VAT registry, including liquidated, inactive, bankrupt ones»
•  «Losses over several tax periods reflected in tax reporting»
•  «Multiple changes and additions to previously submitted tax reporting»
•  «Violations identified by the results of an office audit»
•  «Repeated approximation to the limit value of indicators established by the Tax code, enabling to apply special tax regimes»
•  «Participation in tax monitoring» 
•  «Use of cash registers with the function of data fixing and (or) transfer by taxpayers»
•  «Issuing e-invoices»
•  «Use of a standard verification file by a taxpayer»
•  «Application of a control account for value-added tax».

Thus, according to the Rules the information on the degree to which a taxpayer refers according to the results of the risk management system will be determined twice a year and sent to taxpayers from January 1, 2019 in the “Taxpayer’s Cabinet” web application, and from July 1, 2019 this information will be available on the official website of the SRC MF RK.

In addition, along with information about the degree of risk, the “Taxpayer’s Cabinet” web application will be used to calculate criteria that are not confidential information applied in the risk management system.

Taxpayers, as may be required, will be able to send, through the “Taxpayer’s Cabinet” web application to state revenue authorities, explanations on the specified criteria (similarly to receiving and working out explanations on notifications of violations identified as a result of an office audit).

The explanations, when they are proven to be relevant, received by the state revenue authorities shall be taken into account when applying a risk management system, by sending the altered information to the taxpayer.

Press Service

of the State Revenue Committee

of the Ministry of Finance of the Republic of Kazakhstan

(Zhenis Ave, 11)