ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of May 14, 2020 No. 299

About approval of Rules (technique) of pricing on the goods developed from oil

According to the subitem 3) of Item 10 of article 10 of the Law of the Republic of Kazakhstan of July 5, 2008 "About transfer pricing" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules (technique) of pricing on the goods developed from oil.

2. This resolution becomes effective from the date of its signing and extends to deliveries (shipments) of the goods developed from oil, performed during the period from March 15, 2020 to June 30, 2020 inclusive.

Approved by the Order of the Government of the Republic of Kazakhstan of May 14, 2020 No. 299

Governed (technique) of pricing on the goods developed from oil

Chapter 1. General provisions

1. These rules (technique) of pricing on the goods developed from oil (further - Rules), are developed according to the subitem 3) of Item 10 of article 10 of the Law of the Republic of Kazakhstan of July 5, 2008 "About transfer pricing" (further - the Law) and establish pricing procedure of payments on the goods developed from oil.

2. These rules are applied to the transactions made according to purchase and sale agreements of the goods developed from oil, falling under control in case of transfer pricing (further - the agreement).

3. In these rules the following terms and determinations are used:

1) information sources - publications under the headings Argus Market of the Caspian Sea of Argus Media Limited and "Fuel Market of Central Asia" publishing house of publishing house Thomson of Reuters;

2) transaction price - the goods price (works, services) applied by participants of transactions during transaction, regulated by the Law;

3) the goods developed from oil - gasoline, aviation and diesel fuel, fuel oil, vacuum gasoil (the Commodity Nomenclature of Foreign Economic Activity code 2710 12 412 0, 2710 12 413 0, 2710 12 419 0, 2710 12 450 0, 2710 12 490 0, 2710 12 510 0, 2710 12 590 0, 2710 19 421 0 0, 2710 19 422 0, 2710 19 423 0, 2710 19 424 0, 2710 19 425 0, 2710 19 210 0, 2710 19 620 1, 2710 19 640 1, 2710 19 660 1, 2710 19 680 1, 2710 19 620 9, 2710 19 640 9, 2710 19 660 9, 2710 19 680 9);

4) market price - the goods price (works, services) which developed in case of interaction of the demand and supply in the market identical (and in case of their absence - homogeneous) goods (works, services) in the comparable economic conditions determined according to the principle of "outstretched arm".

Chapter 2. Procedure for determination of transaction price (realization) on the goods developed from oil

4. For agreements, including on deliveries on fixed price, market price is determined by the following formula:

P = Rist - D,

where:

P - market price of the goods developed from oil;

Rist - the price from number of price values from minimum to maximum on the corresponding goods developed from oil, published in source of information of the prices in fifteen calendar days prior to and fifteen calendar days after signature date of appendix and/or the supplementary agreement to the agreement;

D - the differential considered depending on the delivery conditions determined in the agreement, and applied to reduction in comparable economic conditions of transaction price on the goods developed from oil according to the legislation of the Republic of Kazakhstan on transfer pricing.

5. For the purpose of reduction comparable economic conditions of transaction price in differential join the actual expenses proved and documented according to the legislation of the Republic of Kazakhstan on transfer pricing on the goods delivery, developed from oil, from the basis of delivery determined in the agreement where there is realization (transition of the property right) of the goods developed from oil before the market of appointment (delivery point).

6. In case of sales of goods, developed from oil, on fixed price on the markets on which there is no price information in information sources for determination of market price use of prices/quotations on European and (or) in the near geographical market, published in official sources of information, taking into account the price from number of price value from minimum to maximum on the corresponding goods developed from oil in fifteen calendar days prior to and fifteen calendar days after signature date of appendix and/or the supplementary agreement is allowed to the agreement.

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