Amended Regulations of TP Reporting

On June 3, 2022 a new edition of Order of the Minister of Finance № 1104, dated December 24, 2018, On the Approval of Forms and Filling of Local, Master and Country-by-Country Reports (hereinafter, the “Regulations”) entered into force. Most amendments relate to Local File reporting.

General Amendments

There are minor clarifying amendments. For all reports there is a link to the Tax Revenue Committee’s website: https://kgd.gov.kz/ru/content/transfertnoe-cenoobrazovanie-1-1

Local File

The following terms have been added or amended:

• Category of controlled transactions. The condition that transactions must take place in comparable economic circumstances was lifted;
• Local subject. It was clarified that this is a member of a multinational group who is required to submit a Local File;
• Material category of controlled transactions. This is a new term which refers to a group similar of transactions where the total amount of income/expenses or liabilities is over 250 000 MCI valid on January 1 of the corresponding financial year. Please note that this amount includes all payments, e.g. in a financing transaction it is both interest and principal.

In part regulating Master File reporting words “member of a multinational group” have been replaced by “related parties”, because the earlier applies only to Master and Country-by-Country reports.

In paragraph 1.1 of Local File in addition to a description of management and organizational structure of the Local subject there has to be a description of superior entities and their jurisdiction.

In paragraph 2.4 of Local File information on material contracts attached to Local File must also contain their date of conclusion.

Master File

In Section 6 “Responsibility of the Member of a Multinational Group” in addition of the name of the head of the company there has to be name of the person in charge of the report (the executor) and their phone numbers.

Country-by-Country Report

Instead of a foreign tax authority which a member of a multinational group is registered with tax jurisdiction of the member must be indicated. Tax jurisdiction is where a member of a multinational group is registered as a taxpayer or does its business through a permanent establishment. Accordingly, all members of a multinational group who are not residents of any jurisdiction must be reported separately.

In Section 4 “Responsibility of the Member of a Multinational Group” in addition of the name of the head of the company there has to be name of the person in charge of the report (the executor) and their phone numbers.