Article 118. General provisions on accounting for the fulfillment of tax obligations and social obligations of the Tax Code of the Republic of Kazakhstan

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 1. The tax authority maintains a personal account in accordance with this chapter and the procedure for maintaining a personal account. A personal account is maintained in the national currency, as well as in kind, when the tax legislation of the Republic of Kazakhstan explicitly provides for the fulfillment of a tax obligation to pay in kind.

 2. Maintaining a personal account provides for:

 1) accounting for calculated, accrued, and paid amounts of taxes and payments to the budget, social payments, penalties, and fines, including reconciliation of calculations for taxes, payments to the budget, and social payments, providing information on the absence (presence) of arrears, and extracts from the taxpayer's personal account on the status of settlements with the budget for all or certain types of taxes, payments to the budget, social payments, penalties, fines;

 2) offsetting the excessively (erroneously) paid amount of taxes, payments to the budget, penalties and fines;

 3) refund of the excessively (erroneously) paid amount of tax, payment to the budget, penalties and fines;

 4) write-off of taxes, payments to the budget, penalties and fines;

 5) formation of the settlement balance;

 6) actions related to the personal account.

 3. The provisions of this chapter apply to fines imposed for the commission of administrative offences, the proceedings on which are attributed to the competence of the tax authority in accordance with the Code of the Republic of Kazakhstan on Administrative Offences.

The Code of the Republic of Kazakhstan dated July 18, 2025 No. 214-VIII SAM.

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From January 1, 2026, to invalidate the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory payments to the Budget" (Tax Code) in connection with the entry into force of the Tax Code dated July 18, 2025 No. 214-VIII SAM.

Article 118. Suspension of expenditure operations on bank accounts of a taxpayer (tax agent) of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. The suspension of expenditure operations on bank accounts (with the exception of correspondent accounts) of a taxpayer (tax agent) – a legal entity, a structural subdivision of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, an individual registered as an individual entrepreneur, a person engaged in private practice, is carried out in accordance with the procedure established by the Legislation of the Republic of Kazakhstan. defined by the laws of the Republic of Kazakhstan, in the following cases:

1) failure by a taxpayer (tax agent) to submit tax reports within the time limits established by this Code – upon the expiration of thirty working days from the day following the day of delivery of the notification provided for in subparagraph 5) of paragraph 2 of Article 114 of this Code.;

2) failure by a taxpayer to submit a tax application for registration for value added tax – upon the expiration of thirty working days from the date of delivery of the notification provided for in subparagraph 12) of paragraph 2 of Article 114 of this Code.;

3) non-repayment of tax arrears in the amount of more than 6 times the monthly calculation index established by the law on the republican budget and effective on January 1 of the relevant financial year by a taxpayer (tax agent) classified in accordance with the risk management system as:

of a high level of risk, – after one working day from the date of delivery of the notification of repayment of tax arrears.;

average risk level, – after ten working days from the date of delivery of the notification of repayment of tax arrears.;

4) non–admission of officials of a tax authority to a tax audit and inspection of taxable objects and (or) objects related to taxation, except in cases of violation by them of the procedure established by this Code for conducting a tax audit, within five working days from the date of non-admission;

5) the return by a postal or other communication organization of a notification sent in connection with the absence of a taxpayer (tax agent) at the location, with the exception of the notification provided for in subparagraphs 7) and 13) of paragraph 2 of Article 114 of this Code, within five working days from the date of return;

6) failure by the taxpayer to comply with the requirement established by the first part of paragraph 5 of Article 70 of this Code – within three working days from the date of expiry of the period established by the first part of paragraph 5 of Article 70 of this Code.;

7) failure to comply with the notification of the elimination of violations identified by the tax authorities based on the results of desk control – on the next business day after the expiration of the period specified in the first part of paragraph 2 of Article 96 of this Code.

At the same time, the recognition by the tax authority of the notification on the elimination of violations identified by the tax authorities based on the results of desk control as unfulfilled is not grounds for suspending spending operations on the taxpayer's (tax agent's) bank accounts.

2. The suspension of spending operations on bank accounts applies to all spending operations of a taxpayer (tax agent), except:

1) transactions for the payment of taxes and payments to the budget provided for in Article 189 of this Code, customs payments provided for by the legislation of the Republic of Kazakhstan, social payments, penalties accrued for their late payment, as well as fines to be paid to the budget;

2) withdrawals of money:

according to executive documents providing for the satisfaction of claims for compensation for damage caused to life and health, as well as claims for the recovery of alimony;

according to executive documents providing for the withdrawal of money for settlements with persons working under an employment contract, for the payment of severance payments and wages, for the payment of remuneration under an author's agreement, the client's obligations to transfer social payments, as well as for executive documents on collection into state revenue;

to pay off tax arrears and social security payments.

Suspension of expenditure operations on the taxpayer's (tax agent's) bank accounts in the case provided for in subparagraph 3) 1 of this Article, is carried out within the limits of the amount of tax arrears specified in the order of the tax authority on the suspension of expenditure operations on the bank accounts of the taxpayer (tax agent).

3. The order of the tax authority on the suspension of expenditure operations on the bank accounts of a taxpayer (tax agent) is issued in the form established by the authorized body in coordination with the National Bank of the Republic of Kazakhstan, and comes into force from the date of its receipt by a second-tier bank or an organization engaged in certain types of banking operations.

The tax authority sends such an order to second-tier banks or organizations engaged in certain types of banking operations, on paper or in electronic form by transmission over a telecommunications network. When sending an order from a tax authority to suspend spending operations on a taxpayer's (tax agent's) bank accounts in electronic form, such an order is formed in accordance with the formats established by the authorized body jointly with the National Bank of the Republic of Kazakhstan.

4. The order of the tax authority on the suspension of expenditure operations on the bank accounts of a taxpayer (tax agent) is subject to unconditional execution by second-tier banks or organizations engaged in certain types of banking operations, and is executed in the order of priority established by the Civil Code of the Republic of Kazakhstan.

4-1. Repayment by a taxpayer (tax agent) of the amount of tax arrears indicated in the order of the tax authority on the suspension of expenditure operations on the taxpayer's (tax agent's) bank accounts is the basis for the resumption by a second-tier bank or an organization engaged in certain types of banking operations of expenditure operations on the bank accounts of such taxpayer (tax agent).

A second-tier bank or an organization engaged in certain types of banking operations, on the day of repayment of tax arrears, resumes spending operations on bank accounts until the cancellation of the order of the tax authority on the suspension of spending operations on the taxpayer's bank accounts.

5. An order to suspend spending operations on bank accounts shall be cancelled no later than one business day following the day on which the reasons for suspending spending operations on bank accounts are eliminated.

6. In case of closure of a taxpayer's (tax agent's) bank account in accordance with the legislation of the Republic of Kazakhstan, a second-tier bank or an organization engaged in certain types of banking operations returns an order to suspend spending operations on the account to the relevant tax authority along with a notification of closure of the taxpayer's (tax agent's) bank account.

If more than one bank account is indicated in the order suspending spending operations, the second-tier bank or an organization engaged in certain types of banking operations returns such an order to the relevant tax authority no later than one business day following the day of closure of the last of the bank accounts indicated in the order suspending spending operations on bank accounts.

The Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI SAM.

This Code establishes the fundamental principles of taxation, regulates power relations for the establishment, introduction, amendment, cancellation, procedure for calculating and paying taxes and other mandatory payments to the budget, as well as relations related to the fulfillment of tax obligations.

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