In Kazakhstan, state-owned enterprises and non-profit organisations are set to be exempt from monitoring by large taxpayers. The Committee for State Revenues (KGD) aims to redirect its resources towards analysing private businesses, where the risks of tax optimisation are deemed higher. The proposed changes to Article 144 of the Tax Code have been published on the ‘Open NPA’ portal. If approved, this new regulation will come into effect on January 1, 2027.
Tax authorities justify this amendment by highlighting that monitoring is a resource-intensive process requiring continuous data exchange and ongoing analysis of financial and economic activities. State companies and non-profit organisations do not primarily aim to generate profit, and their operations are already subject to scrutiny by the Supreme Audit Chamber, internal audit services, and supervising ministries. Therefore, the KGD considers additional tax oversight unnecessary.
Monitoring large taxpayers involves a form of tax control where the KGD collects and analyses information about a company to ensure compliance with tax legislation and transfer pricing rules. Under this procedure, tax officials have the right to request financial reports from the company and its subsidiaries, as well as documents and written explanations to confirm the accuracy of tax calculations and timely payments.
Companies are given 15 working days to provide the requested documents. If the KGD identifies violations or discrepancies, it sends recommendations for self-correction to the enterprise. Should there be disagreements, a meeting is held, resulting in a reasoned decision from the tax authority. Non-compliance with this decision serves as a direct basis for initiating a full tax audit.
Currently, the list of large taxpayers includes 524 companies, featuring major state-owned giants such as the Baiterek Holding, KazMunayGas, Kazatomprom, and their subsidiaries. This move reflects Kazakhstan’s ongoing efforts to streamline tax administration and focus on sectors with greater compliance risks.
