Lawmakers approved amendments to transfer pricing issues in the first reading, which will come into force on January 1, 2024. The document aims to prevent losses of government revenue in international business transactions.
Innovations provide for new types and criteria of currency transactions have been introduced, which may be aimed at withdrawing money from the Republic of Kazakhstan, evading the requirements of the currency legislation of the Republic of Kazakhstan, and the procedure for their implementation.
From the beginning of 2024, the resident submits to the authorized bank permission to transfer information about this payment and (or) transfer of money to currency control authorities and law enforcement agencies, as well as, at the request of the authorized bank, other documents and information necessary for the authorized bank to monitor and study the operation in accordance with the requirements of the Law of the Republic of Kazakhstan “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”
Currency transactions that may be aimed at withdrawing money from the Republic of Kazakhstan include the following operations:
1) a financial loan that is given by a non-resident to a resident (except for an authorized bank), if the terms of the relevant currency agreement (initially or after making changes and (or) additions to the currency agreement) does not stipulate the transfer of money to be received from the non-resident to bank resident accounts in authorized banks;
2) a financial loan that provides for the emergence of a resident (with the exception of an authorized bank) of claims against a non-resident for the return of money, if the terms of the relevant currency agreement (initially or after making changes and (or) additions to the currency agreement) does not stipulate the transfer of money to be received from a non-resident, to resident bank accounts in authorized banks;
3) a financial loan that provides for the provision of money by a resident to a non-resident who is not an affiliated person, if the terms of the relevant currency agreement (initially or after making changes and (or) additions to the currency agreement) does not stipulate the payment of remuneration for using the subject of the financial loan;
4) export operations, if the terms of the relevant currency agreement (initially or after making changes and (or) additions to the currency agreement) stipulate that the period for fulfillment of obligations by a non-resident to pay for exports exceeds 720 (seven hundred and twenty) days from the date of fulfillment of obligations by the resident;
5) import operations, if the terms of the relevant currency agreement (initially or after making changes and (or) additions to the currency agreement) stipulate that the deadline for fulfilling the non-resident’s obligations to supply goods (perform work, provide services) or return money, including advance payment or prepayment amount in full (in case the non-resident fails to fulfill its import obligations) exceeds 720 (seven hundred and twenty) days from the date of fulfillment of obligations by the resident;
6) transfer of money by a resident to a non-resident (professional participant in the securities market) carrying out currency transactions on behalf of clients in an amount exceeding 50,000 (fifty thousand) US dollars in equivalent;
7) transfer of money by a resident to his/her own account abroad in an amount exceeding 50,000 (fifty thousand) US dollars in equivalent;
8) free transfer of money made by a resident in favor of a non-resident in an amount exceeding 50,000 (fifty thousand) US dollars in equivalent.
Foreign exchange transactions specified in subparagraphs 1), 2) and 3) of part one of this paragraph do not include financial loans that arise as part of trade or Islamic finance transactions, as well as transactions carried out by non-residents with their branches (representative offices) in the Republic of Kazakhstan, and transactions between branches (representative offices) of foreign organizations in the Republic of Kazakhstan.
For the purposes of this paragraph, an affiliate of a resident includes:
1 ) a person who owns ten or more percent of the voting shares of a joint stock company (ten or more percent of the votes of participants) of a resident legal entity;
2) a person in which the resident owns ten or more percent of the voting shares of the joint-stock company (ten or more percent of the votes of participants);
3) a person who, together with this resident, is under the control of a third party.
These conditions do not apply to intra-corporate money transfers carried out by branches (representative offices) of foreign non-financial organizations.
For more detailed information, please send a request to
info@moore.kz