We recommend taking the test that will allow you to determine whether you fall under the requirements of the legislation of the Republic of Kazakhstan on Transfer Pricing and what actions should be taken in this regard.
Transfer pricing rules apply to international (cross-border) and, in certain circumstances, domestic dealings directly related to international business operations.
- a set of companies or individuals includes at least one company or individual who is recognized as a resident of the Republic of Kazakhstan or is not recognized as a resident of the Republic of Kazakhstan, but carries out entrepreneurial activities in the Republic of Kazakhstan through a structural unit, a permanent establishment;
- are linked through control and / or participation;
- in relation to them are prepared consolidated financial statements or whose financial statements are not taken into account when preparing consolidated financial statements solely because of the size or materiality of these persons in accordance with international financial reporting standards or other internationally recognized financial reporting standards adopted by stock exchanges for admitting securities to the auction
Parent company of an international group is a member of an international group that simultaneously satisfies the following conditions:
- such a participant directly and (or) indirectly participates in the authorized capital of other members of the international group and the share of such participation is sufficient to prepare consolidated financial statements for the members of the international group;
- such participant does not have another parent company above him;
- no other member of the international group simultaneously meets all the conditions specified here;
Authorized member of an international group is a member of an international group that is not the parent company of an international group, but who is authorized to:
- prepare and (or) submit cross-country reporting on behalf of the international group and which, in the legal relationship for the submission of cross-country reporting, exercises the same rights and obligations as the parent company of the international group,
prepare and (or) submit, on behalf of the international group or group's participant, the main reporting and (or) local reporting in the state (territory), the resident of which is another member of the international group, which has provided the appropriate authority, or in which (on which) such a member of an international group carries out entrepreneurial activity through a structural unit, a permanent establishment. An authorized participant in legal relations for the submission of basic reporting and (or) local reporting exercises the same rights and obligations as another member of an international group who transferred the relevant powers.
According to subparagraph 4 of paragraph 3 of Article 5 of the Law of the Republic of Kazakhstan No. 67-IV "On Transfer Pricing", your company is obliged to submit information and documents confirming the validity of the applied transaction price within 90 calendar days at the request of the authorized bodies of the Republic of Kazakhstan.
Also, some international business transactions on goods, works, services, the list of which is approved by the authorized body, are subject to transaction monitoring.
Our team of professionals with deep knowledge and experience in the field of transfer pricing will be glad to help you take the necessary actions in time.
We recommend to continue the test to determine the effect of the three-tier transfer pricing reporting requirements for your company.
If your company has transactions with non-residents of the Republic of Kazakhstan (including with the parent company or other members of your international group), your company becomes obliged to submit local file to the authorized body of the Republic of Kazakhstan no later than 12 months following the reporting financial year.
Additionally, your company must also submit to the authorized body an application for its participation in an international group no later than September 1 of the year following the reporting financial year.
Our team of professionals will be glad to help you with all questions regarding the preparation of local file and applications for participation in an international group.
We recommend to continue the test to determine the effect of the three-tier transfer pricing reporting requirements for your company.
If your company has transactions with non-residents of the Republic of Kazakhstan (including with the parent company or other members of your international group), your company has the obligation to submit the Master File to the authorized body of the Republic of Kazakhstan at their request.
Our team of professionals will be glad to help you with all your Master File questions.
We recommend to continue the test to determine the effect of the three-tier transfer pricing reporting requirements for your company.
Typically, the responsibility for submitting Country-by-Country Report is assigned to the parent company of the international group, which is a resident of the Republic of Kazakhstan or an authorized member of the international group. However, in some cases, the responsibility for submitting Country-by-Country Report at the request of the authorized body may be assigned to a member of an international group.
Our team of professionals will be glad to help you with all your questions regarding transfer pricing or tax legislation in the Republic of Kazakhstan.