Article 818. The procedure for fulfilling a tax obligation in kind in respect of royalties and the share of the Republic of Kazakhstan in the distribution of products tax code of the Republic of Kazakhstan

     1. fulfillment in monetary form of a tax obligation related to the payment of royalties and the share of the Republic of Kazakhstan in the distribution of products simultaneously in compliance with the following conditions:

     1) the agreements (contracts) on the distribution of products specified in Article 755 of this code, the contract for subsoil use approved by the president of the Republic of Kazakhstan provide for the transfer of minerals to the calculation of the fulfillment in kind of a tax obligation related to the payment of royalties and (or) the share of the Republic of Kazakhstan in the distribution of products;

     2) the recipient on behalf of the state of minerals transferred by the subsoil user in kind to account for the fulfillment of a tax obligation may be temporarily, in whole or in part transferred in kind, if determined by the decision of the Government of the Republic of Kazakhstan.

     2. for the fulfillment of a tax obligation in kind:

     1) the subsoil user transfers minerals to the recipient on behalf of the state in accordance with the procedure and terms established by the agreement (contract) on the distribution of products specified in Article 755 of this code and (or) the contract for subsoil use approved by the president of the Republic of Kazakhstan or other document provided for in such agreement and (or) the contract;

     2) on behalf of the state, the recipient transfers minerals independently or through a person authorized by the recipient on behalf of the state to carry out such sales, taking into account compliance with the legislation of the Republic of Kazakhstan on transfer pricing.

     The subsurface User shall be obliged to carry out the sale of minerals taken into account for the fulfillment of the obligation in kind in the following cases::

     legality;

     transparency;

     clarity;

     loyalty;

     Justice;

     get the most out of it;

     in compliance with the principles of minimizing associated expenses;

     3) the recipient on behalf of the state or a person authorized by the recipient on behalf of the state to carry out such a sale determines and transfers to the budget current payments in the amount calculated in accordance with the procedure for fulfilling the obligation in kind, determined by the Government of the Republic of Kazakhstan;

     4) a subsoil user, a recipient on behalf of the state submits a declaration (calculation of current payments) for the fulfillment of a tax obligation in kind to the tax authorities at their location in accordance with the procedure defined by this code and in the form established by the authorized body.

     3.the calendar quarter is the tax period for the subsoil user to fulfill the tax obligation on taxes in kind.

     The calendar year is a tax period for the recipient on behalf of the state in terms of payment of money received from the actual sale of minerals, which the subsurface user transfers to account for the fulfillment of a tax obligation for taxes in kind.

     4.determination of the amount of minerals transferred to account for the fulfillment of a tax obligation in kind, its calculation in monetary terms, as well as their sale shall be carried out in accordance with the procedure determined by the Government of the Republic of Kazakhstan for the fulfillment of an obligation in kind.

     5.the subsoil user submits a declaration on the fulfillment of a tax obligation in kind to the tax authority at its location no later than the 15th day of the second month following the tax period.

     6. on behalf of the state to the tax authority at the place of residence of the recipient:

     1) calculation of current payments for the fulfillment of a tax obligation in kind no later than the 15th day of the second month following the tax period.

     After the deadline established for submitting the declaration specified in subitem 2) of this paragraph, it is not allowed to submit a calculation of current payments for the fulfillment of a tax obligation in kind, make changes and additions to it;

     2) a declaration on the fulfillment of a tax obligation in kind for a calendar year no later than March 31 of the year following the reporting calendar year.

     On behalf of the state, the recipient does not submit a declaration on corporate income tax and Value Added Tax in relation to activities related to the fulfillment of a tax obligation in kind.

     7.during the Tax Period, the recipient on behalf of the state determines the current payments to the account of payment of taxes in kind on a quarterly basis and transfers them to the budget no later than the 25th day of the second month following the tax period, which does not include the current payments specified in part two of this paragraph.

     Current payments for minerals received for previous tax periods, spent in the first quarter, are subject to reflection in the additional calculation of current payments in kind for the fourth quarter of the previous calendar year and are transferred to the budget within the time limits established by Paragraph 8 of this article.

     Current payments are transferred to the budget in the amount of money received from the sale of minerals in the corresponding tax period with a reduction in expenses for such sales, which are subject to compensation in accordance with the procedure for fulfilling the obligation in kind determined by the Government of the Republic of Kazakhstan.

     8.no later than ten calendar days after the deadline established for submitting a declaration on the fulfillment of a tax obligation in kind, the recipient on behalf of the state pays the money received from the sale of minerals transferred by the subsoil user during the previous calendar year to the calculation of the fulfillment of a tax obligation in kind. Such payment is made in the currency specified in Article 755 of this code, provided for in the relevant agreement (contract) on the distribution of products and (or) a contract for subsurface use approved by the president of the Republic of Kazakhstan.

     The amount of a tax obligation in kind for a calendar year is determined in accordance with the procedure for fulfilling the obligation in kind determined by the Government of the Republic of Kazakhstan.

     9.when paying (transferring), the name and identification number of the recipient on behalf of the state are also indicated in the payment documents.

     10.a tax obligation not fulfilled on time is determined in the amount of the physical volume of minerals for a tax obligation not fulfilled on time, translated into monetary terms.

     11.for a subsurface user, the physical volume of minerals under a tax obligation not fulfilled on time is determined as the difference between the physical volume of minerals to be transferred for the tax period and the physical volume of minerals actually transferred for the tax period.

     The physical volume of minerals is transferred to monetary value using conditional prices determined in accordance with the agreements (contracts) on the distribution of products provided for in Article 755 of this code, the contract for subsurface use approved by the president of the Republic of Kazakhstan.

     In the absence of the procedure for determining conditional prices in the agreements (contracts) on the distribution of products provided for in Article 755 of this code, in the contract for subsoil use approved by the president of the Republic of Kazakhstan, such conditional prices are determined in accordance with the procedure for fulfilling the obligation determined by the Government of the Republic of Kazakhstan in kind.

     12.for the recipient on behalf of the state, the physical volume of minerals under a tax obligation not fulfilled in a calendar year is determined as the difference between the physical volume of minerals taken into account for the fulfillment of a tax obligation in kind, calculated in accordance with the procedure for the fulfillment of an obligation in kind determined by the Government of the Republic of Kazakhstan, to be sold for the reporting calendar year and the physical volume of minerals actually sold in the reporting calendar year.

     For a tax obligation not fulfilled within a calendar year, the physical volume of minerals is transferred to a monetary value for the recipient on behalf of the state, using the actual price of the average size for the reporting calendar year, but not lower than the conditional price of the average size provided for in paragraph 11 of this article.  

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

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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