of January 30, 2009 No. HK-17-28/640
The Tax Committee of the Ministry of Finance of the Republic of Kazakhstan, having considered your letter of January 6, 2009 No. 1, reports the following.
On the corporate income tax
According to Item 1 of Article 708 of the Civil code of the Republic of Kazakhstan according to the freight forwarding agreement one party (freight forwarder) shall for remuneration and at the expense of other party (the client - the sender or the consignee) to execute or organize accomplishment of the services determined by the agreement of expedition connected with cargo hauling including to sign on behalf of the client or on its own behalf the agreement (agreements) of cargo hauling.
According to Item 2 of Article 708 of the Civil code in the part which is not settled by Chapter 35 of the Civil code provisions of Chapter 41 of the Civil code are respectively applied to the relations under the agreement of expedition if the freight forwarder under the terms of the agreement acts on behalf of the client, and provisions of Chapter 43 of the Civil code - if he acts on its own behalf.
So, according to the subitem 2) of Item 1 of Article 849 of the Civil code the principal shall if other is not provided by the agreement of the order, to refund to the attorney the incurred expenses which were necessary for execution of the order.
Also Item 1 of Article 876 of the Civil code it is established that the consignor shall, in addition to payment of commission fee, and in appropriate cases and extra fee for the del credere, compensate to the broker the amounts spent by it on execution of the order.
According to Item 2 of article 13 of the Law of the Republic of Kazakhstan of February 28, 2007 «About financial accounting and the financial reporting» the income - increase in economic benefits during the accounting period in the form of inflow or increments of assets or reduction of obligations which lead to the increase in the capital other than the increase connected with fees of persons participating in the capital.
According to Item 1 of article 86 of the Code of the Republic of Kazakhstan «About taxes and other obligatory payments in the budget» (Tax code), seen in action since January 1, 2009, the income from realization is the cost of the realized goods, the performed works, the rendered services, except the income included in gross annual income according to articles 87-98 of the Tax Code if other is not stipulated by the legislation the Republic of Kazakhstan about transfer pricing.
As the amounts received by shipping company from the client for benefit of the third party lead to emergence of obligations and do not increase equity, respectively, the specified amounts are not recognized the income of shipping company.
Considering stated, the income of shipping company the amount of remuneration received for rendering forwarding services is recognized.
At the same time if within the freight forwarding agreement the freight forwarder at the expense of own means incurred the expenses made by it for the benefit of the client and compensated by the client, the amount of such compensation is also recognized the income of the freight forwarder and is subject to inclusion in its gross annual income.
On the value added tax
According to Item 1 of article 264 of the Tax Code the invoice is written out by the freight forwarder based on the invoices exposed by the carriers and other suppliers of works, services who are taxpayers on value added within the freight forwarding agreement signed between the freight forwarder and the sender or the consignee.
According to Item 2 of article 264 of the Tax Code the size of leviable turnover in the invoice which is written out by the freight forwarder is specified taking into account the cost of the works and services executed and rendered by carriers and (or) suppliers within the freight forwarding agreement.
At the same time the amount of remuneration included in the size of leviable turnover of the freight forwarder in the invoice shall be allocated separately.
By Item 12 of article 238 of the Tax Code it is determined that when rendering services in the freight forwarding agreement the size of leviable turnover at the freight forwarder is determined on the basis of its remuneration.
Thus, at the freight forwarder in the declaration on the value added tax in leviable turnover the amount of remuneration received by it according to the freight forwarding agreement is specified.
Deputy. Vice-chairman of the Tax Committee
Ministries of Finance of the Republic of Kazakhstan of T. Botakanov
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
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