I.O'S ORDER. MINISTER OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

of July 1, 2020 No. 648

About approval of Rules of carrying out pilot project on horizontal monitoring

According to Item 1-1 of article 68 of the Code of the Republic of Kazakhstan of December 25, 2017 "About taxes and other obligatory payments in the budget" (Tax code) of PRIKAZYVAYU:

1. Approve Rules of carrying out pilot project on horizontal monitoring.

2. To provide to committee of state revenues of the Ministry of Finance of the Republic of Kazakhstan in the procedure established by the legislation:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) placement of this order on Internet resource of the Ministry of Finance of the Republic of Kazakhstan;

3) within ten working days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan submission to Department of legal service of the Ministry of Finance of the Republic of Kazakhstan of data on execution of the actions provided by subitems 1) and 2) of this Item.

3. This order becomes effective after ten calendar days after day of its first official publication and is effective till December 31, 2023.

Approved by the Order of the deputy. The Minister of Finance of July 1, 2020 No. 648

Rules of carrying out pilot project on horizontal monitoring

Chapter 1. General provisions

1. These rules of carrying out pilot project on horizontal monitoring (further - Rules) are developed according to Item 1-1 of article 68 of the Code of the Republic of Kazakhstan "About taxes and other obligatory payments in the budget" (Tax code) (further - the Tax code).

2. These rules determine:

categories of taxpayers to whom the pilot project on horizontal monitoring extends (further - the Pilot project);

the rights and obligations of taxpayers, bodies of state revenues and other authorized state bodies, and also organizations when implementing the Pilot project;

territory (site) and (or) region of implementation of realization (implementation) of the Pilot project;

the rules of realization (implementation) of the Pilot project including the sequence of actions of bodies of state revenues and taxpayers when implementing the Pilot project;

term of realization (implementation) of the Pilot project.

3. The pilot project is implemented for the purpose of enhancement and upgrade of procedure for carrying out the horizontal monitoring provided by Chapter 15 of the Tax code, establishment of requirements to internal control system and information systems of the taxpayer for interaction, and also modification and amendments in the current legislation.

4. The realization of the Pilot project is enabled in two stages:

1) preproject work;

2) pilot implementation of horizontal monitoring.

In case of the preproject work studying and preparatory work of internal control system and accounting information systems for the introduction of taxpayers are carried out to horizontal monitoring. The preproject work is regulated within the Agreement on interaction (further - the Agreement on interaction) according to appendix 1 to these rules and provisions of these rules which is signed by the first head of Committee of state revenues of the Ministry of Finance of the Republic of Kazakhstan (further - Committee) or person replacing it.

Pilot implementation of horizontal monitoring is regulated within the Agreement on pilot project on horizontal monitoring (further - the Agreement on pilot project) according to appendix 2 to these rules and provisions of these rules.

Taxpayers become participants of the Pilot project (further - the participant of the Pilot project) from signature date of the Agreement on interaction if other not stipulated in Item 8 these rules.

Taxpayers from the list of large taxpayers from the date of agreement signature about pilot project are not subject to monitoring of large taxpayers.

5. The pilot project provides interaction of body of state revenues and the taxpayer which is based on the following principles:

1) cooperation - recognition of equality of body of state revenues and the participant of the Pilot project, freedom of the agreement and joint lawful regulation of tax risks by the principle of "one window";

2) reasonable trust - aspiration to conducting successful joint operation, interaction for development of constructive decisions;

3) conscientiousness - non-admission of extraction of benefit from the illegal actions for the purpose of receipt of tax benefits (tax economy) and reduction of tax payments;

4) legality - steady observance of requirements of the legislation of the Republic of Kazakhstan;

5) transparency - publicity, openness and transparency;

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