Kazakhstan has adopted the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13 recommendations by incorporating Country-by-Country Reporting (CbCR) into its domestic tax legislation. This initiative is aimed at increasing tax transparency and ensuring that profits are reported and taxed where economic activities occur.

This guide provides key information for multinational enterprise (MNE) groups with operations in Kazakhstan regarding CbCR obligations, including filing thresholds, processes, and penalties.

Regulatory Framework

• Authority: State Revenue Committee (SRC) of the Ministry of Finance of the Republic of Kazakhstan
• Legislation:
  • Article 134 of the Tax Code of the Republic of Kazakhstan
  • Order No. 1424 dated 28 December 2017 (on the approval of forms and rules for CbCR submission)
• International Engagement:
  • Kazakhstan is a member of the OECD Inclusive Framework on BEPS
  • Signatory to the Multilateral Competent Authority Agreement (MCAA) on CbCR

CbCR Filing Requirements

• Who Must File:
  • Kazakhstan-resident ultimate parent entities (UPEs) of MNE groups with total consolidated revenue of KZT 322.4 billion or more (equivalent to EUR 750 million)
  • Local entities may be required to file a CbC report if the UPE is not obligated to file or if Kazakhstan does not have an exchange agreement with the UPE’s jurisdiction
• CbCR Notification:
  • Required from all Kazakhstan-resident constituent entities
  • Deadline: no later than 31 December of the reporting year
• CbCR Submission:
  • Filing deadline: no later than 12 months after the last day of the reporting fiscal year
  • Submission must be in XML format using the designated online system of the State Revenue Committee

Penalties for Non-Compliance

• Penalties may be imposed for:
  • Late submission
  • Failure to notify
  • Providing incorrect or incomplete information
• Fines can range depending on the severity and frequency of the violation, potentially up to KZT 300,000 or more

Important Considerations

• CbCR obligations are in addition to Master File and Local File requirements
• Kazakhstan’s tax authority may use CbC data for risk assessment purposes
• Consistency across all documentation is expected

Useful Resources

• State Revenue Committee of Kazakhstan: https://kgd.gov.kz
• OECD CbCR Guidance: https://www.oecd.org/tax/beps/country-by-country-reporting.htm