Kazakhstan Legislation Update. January, 2012
CODES AND LAWS
Code of the Republic of Kazakhstan On Marriage (Matrimony) and Family No. 518-IV was adopted on December 26, 2011.
New Code determines objectives, tasks, principles and legal fundamentals of regulation of matrimonial relations.
The matrimonial legislation of the Republic of Kazakhstan regulates rights and obligations, property and personal non-property relations between family members; establishes terms and procedure for entering into a marriage; determines forms and procedure for fostering children-orphans by families; regulates the procedure for registration of acts of civil status and determines functions of state authorities performing state civil registration.
The Code regulates legal relations that have arisen after enactment of the Code, except that adoption agencies are obliged to be accredited by an authorized state body in the sphere of protection of children’s rights of the Republic of Kazakhstan one year following enactment of the Code.
Law of the Republic of Kazakhstan "On Pension System in the Republic of Kazakhstan" on issues of collective investments and activities of pension savings funds dated June, 20, 1997 was amended by Law of the Republic of Kazakhstan No. 88-IV dated November 20, 2008.
Depositors of obligatory pension payments and recipients of pension payments from pension savings funds have a right to choose a pension fund and keep the pension savings in one or several investment portfolios and to transfer pension savings from one type of investment portfolio to another within one pension savings fund.
Law of Republic of Kazakhstan "On Republican Budget for 2012-2014" № 496-IV dated November 24, 2011, as from January 01, 2012 has established:
1) Minimum salary – at 17 439 Tenge;
2) Amount of state base pension payment – at 8 720 Tenge;
3) Minimal pension – at 17 491 Tenge;
4) Monthly calculation index for calculation of allowances and other social payments as well as for penalties, taxes and other payments in accordance with the legislation of the Republic of Kazakhstan – at 1 618 Tenge;
5) Amount of a living wage for calculation of amounts of base social payments – at 17 439 Tenge.
Law of the Republic of Kazakhstan "On National Bank of the Republic of Kazakhstan" dated March 30, 1995 and Law of the Republic of Kazakhstan "On Currency Regulation and Currency Control" dated June 13, 2005 on issues of currency regulation and currency control was amended by Law of the Republic of Kazakhstan No. 530-IV dated January 06, 2012.
Law is aimed at enhancing mechanisms of currency control, simplification of the procedure for conducting by residents of certain types of currency operations and at bringing norms of Law of the Republic of Kazakhstan "On Currency Regulation and Currency Control" in compliance with Agreement on Transfer of Cash and (or) Cash Instruments by Natural Persons through the Customs Border of the Customs Union.
TAXES AND TAXATION
Rules for Making the Treaty on Application of Transfer Pricing was approved by Decree of the Government of the Republic of Kazakhstan No. 1197 dated October 24, 2011.
New Rules have been established in accordance with Law of the Republic of Kazakhstan "On Transfer Pricing". Rules establish the procedure for making the Treaty on Application of Transfer Pricing between the state bodies – Tax Committee under the Ministry of Finance of the Republic of Kazakhstan, Customs Control Committee under the Ministry of Finance of the Republic of Kazakhstan and a participant of a transaction.
Decree of the Government of the Republic of Kazakhstan No. 1324 dated November 11, 2011 "On Approval of Reporting Forms for Monitoring of Transactions and Rules for Monitoring" approved reporting forms for monitoring of "Export of Goods (Works, Services)", reporting forms for monitoring of transactions “Import of Goods (Works, Services)", and Rules for Monitoring of Transactions.
New Rules have been elaborated in accordance with Articles 6 and 7 of the Law of the Republic of Kazakhstan "On Transfer Pricing" and establish the procedure for monitoring of transactions, which includes the procedure for filling by a participant of a transaction established reporting forms for monitoring of transactions and their submission to the authorized state bodies, as well as maintenance of documentation on monitoring of transactions by participants of transactions, including those participants that make transactions with commodities that are not subject to monitoring. Monitoring of transactions is performed by tax authorities.
Decree of the Government of the Republic of Kazakhstan No. 1612 dated December 27, 2011 has approved Rules for Realization of Control over Procedure for Accounting, Storage, Evaluation, Further Use and Sale of Property Turned (subject to turning) into the State’s Property and Timeliness of Income of Moneys into the Budget in Case of Sale of the Property, as well as Procedure for Transfer of the Property Turned (subject to turning) into the State’s Property.
New Rules have been elaborated in accordance with Article 655.1 of the Tax Code of the Republic of Kazakhstan and establish a procedure and terms for exercising the procedure for accounting, storage, evaluation, further use and sale of property turned (subject to turning) into the state’s property and timeliness of income of moneys into the budget in case of sale of the property, as well as procedure for transfer of the property turned (subject to turning) into the state’s property.
Control is exercised by tax authorities not more than once a year. Control is exercised for not more than thirty working days. Control period is not more than five years.
Rules on Exemption from Payment of Value-Added Tax on Goods Temporarily Brought into the Territory of the Republic of Kazakhstan was approved by Decree of the Government of the Republic of Kazakhstan No. 1655 dated December 30, 2011.
Rules establish the procedure for value-added tax exemption on goods, including transportation vehicles, temporarily imported into the territory of the Republic of Kazakhstan from the territory of the states-members of the Customs Union.
The form of the Registration Certificate of registration of a non-resident as a taxpayer of the Republic of Kazakhstan was approved by the Order of the Minister of Finance of the Republic of Kazakhstan No. 232 dated April 28, 2011.
According to Article 562.10 of the Tax Code of the Republic of Kazakhstan registration of non-residents as taxpayers is performed by tax authorities followed by issuance of a registration certificate in the established form, approved by the authorized state body within three working days from the date of receipt of information from national registers of identification numbers.
ACCOUNTING AND FINANCIAL REPORTING
Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" dated February 28, 2007 was amended by the Law of the Republic of Kazakhstan No. 467-IV of July 27, 2011.
According to new amendments individual entrepreneurs who work under special tax regime on the basis of a one-time ticket or patent in accordance with the tax legislation of the Republic of Kazakhstan have a right not to maintain accounting records and prepare financial reporting.
PENSIONS, ALLOWANCES, SOCIAL INSURANCE, WELFARE
Decree of the Government of the Republic of Kazakhstan No. 1553 dated December 20, 2011 has approved pension valorization.
As from January 01, 2012, pensions paid from the State Center on Pensions that were assigned for payment before January 01, 2012 to all recipients of pension payments, including recipients of pension payments for time in service as military servants, law enforcement officers with special ranks, class ranks, as well as to persons whose rights to have special ranks, class ranks and wear uniforms were abolished as from January 01, 2012, have been increased by 9% compare to earlier received pension payments.
Decree of the Government of the Republic of Kazakhstan No. 1670 dated December 30, 2011 has approved valorization of social payments made from the Social Insurance State Fund.
Pursuant to Article 24 of the Law of the Republic of Kazakhstan "On Compulsory Social Insurance", as from January 01, 2012, social payments paid from the Social Insurance State Fund and assigned to persons, who are recipients of social payments as of January 01, 2012, in events of full loss of ability to work and loss of a wage-earner have been increased by 7%.
Decree of the Government of the Republic of Kazakhstan No. 1671 dated December 30, 2011 has approved maximum value of the percentage rate of a commission charge for carrying out activities of Social Insurance State Fund JSC and mechanics of its application for the year 2012.
Maximum value of the percentage rate of a commission charge for carrying out activities of Social Insurance State Fund JSC shall be not more than 0,45% of the assets received on accounts of the Fund for the reporting period.
Instruction on Regulated Value of Prudential Norms, Calculation Methodology for Pension Savings Funds and Instruction on Regulated Value of Prudential Norms, Calculation Methods for Organizations Carrying out Investment Management have been amended by Resolution of the Board of Directors of the Agency of Republic of Kazakhstan on Control and Supervision over Financial Markets and Financial Organizations No. 266 dated December 29, 2009.
Amendments and changes are aimed at enhancement of normative legal acts on issues of prudential regulation of activities of pension savings funds, organizations carrying out investment management of pension assets and organizations combining types of professional activities in the securities market.
AUDITING ACTIVITY
Decree of the Government of Republic of Kazakhstan No. 601 dated July 17, 2007 "On Approval of Rules of Licensing and Qualification Requirements of the Auditing Activities” was amended by Decree of the Government of Republic of Kazakhstan No. 1318 dated November 10, 2011.
Changes have been introduced for purposes of realization of the Law of the Republic of Kazakhstan "On Introduction of Amendments and Changes into Certain Legislative Acts of the Republic of Kazakhstan on Issues of Enhancement of the Regulatory Approval System”, which amended the Law of the Republic of Kazakhstan “On Licensing” that sets forth terms and procedure for licenses issuance.
INSURANCE ACTIVITY
Resolution of the Board of Directors of the National Bank of the Republic of Kazakhstan "On Approval of Rules for Carrying out Actuarial Activity in the Insurance Market, Issuance, Suspension of the Activity and Revocation of the License for Carrying out Actuarial Activity, Procedure for Passing Qualification Exam by the Actuary” No. 120 dated April 20, 2001 was amended by Resolution of the Board of Directors of the Agency of Republic of Kazakhstan on Control and Supervision over Financial Markets and Financial Organizations No. 132 dated September 03, 2010.
Resolution determines terms for carrying out actuarial activities in the insurance market of the Republic of Kazakhstan, including procedure and terms for engagement of an independent actuary, procedure and terms for providing the authorized state body on control and supervision over financial market and financial organization with results of evaluation of credibility of actuary calculations made by an independent actuary. Also, the Resolution establishes a list of requirements to international associations of actuaries as well as grounds and procedure for issuance of a license for carrying out actuary activity and suspension and revocation of the license, as well as procedure for passing of a qualification exam by actuaries.
FOREIGN ECONOMIC ACTIVITY. CUSTOMS
New Unified Goods Nomenclature of Foreign Economic Activity of the Customs Union was approved by Decision of the Commission of Customs Union No. 850 dated November 18, 2011.
Import duties rates of the Unified Customs Tariff of the Customs Union have been approved. Also, a list of goods and rates in relation to which the Republic of Kazakhstan applies import duties rates different from those of the Unified Customs Tarrif of the Customs Union during a transition period has been approved.
BANKING, CREDIT ACTIVITY
Official refinancing rate of the National Bank of the Republic of Kazakhstan was established by Resolution of the Board of Directors of the National Bank of Republic of Kazakhstan No. 207 dated December 26, 2011.
As from January 01, 2012, the official refinancing rate of the National Bank of the Republic of Kazakhstan has been established at 7,5% per annum.
MISCELLANEOUS
Rules for Annual Reporting on Activities of Natural Monopoly Subject on Rendering of Regulated Services (Goods, Works) to Consumers and Other Interested Persons have been approved by Decree of the Government of the Republic of Kazakhstan No. 1246 dated October 31, 2011.
Rules have been elaborated in accordance with the Law of the Republic of Kazakhstan "On Natural Monopolies and Regulated Markets" and establish the procedure for annual reporting on activities of a natural monopoly subject on rendering on regulated services (goods, works) to consumers and other interested persons.
Rules are aimed at strengthening the system of consumers protection, ensuring transparency of activities of natural monopolies subjects to consumers and other interested persons.
Rules for Formation of Registry of Creditors Claims have been approved by Decree of the Government of the Republic of Kazakhstan No. 1437 dated December 02, 2011.
Rules have been elaborated in accordance to paragraph 6 of Article 10-1 of the Law of the Republic of Kazakhstan "On Bankruptcy" and establish the procedure for formation of the registry of creditors claims during bankruptcy proceedings and rehabilitation procedure.