The Kazakh Parliament has
approved a package of amendments to the law on transfer pricing in two readings,
which will prevent losses of state revenue during international business
transactions. These amendments are specifically directed toward reducing administrative
costs for both taxpayers and regulators by expanding the definition of related
parties. This provision will help mitigate the risk of withdrawal of capital
from the country. Additionally, the document introduces new requirements for
accounting. Taxpayers are now responsible for providing local reporting, which will
enhance trade transparency, according to MPs. Besides, the legislative
innovations propose monitoring transfer pricing of transactions conducted on
commodity exchanges. Senators believe that this measure will prevent
transactions from being conducted at prices below market rates, thus acting as
a barrier against money outflow from the country.
“To prevent the occurrence of
such situations, it is proposed to expand the definition of interconnectedness
between transaction participants. This measure would strengthen control over
capital withdrawal and improve transaction monitoring and traceable
information. The proposed changes will enable identification of the actual
amount of taxes during documentary tax audits. Most importantly, they are aimed
at preventing capital withdrawal and avoiding tax evasion,” said Amangeldi
Nugmanov, member of the Senate, the Upper House of the Kazakh Parliament.
