Kazakhstan is set to enhance
control over export transactions. The Mazhilis, a Lower House of the Kazakh
Parliament, approved on first reading amendments on the transfer pricing. The implementation
of the draft law will prevent the loss of state revenue in international
business operations. The document aims at improving the application of the five
methods for determining market value. For example, if taxpayers opt for only
one method, they are required to justify the reason for not applying the
others. It is also proposed to narrow the market range to establish more
equitable pricing. Additionally, there are provisions to enhance control
measures for capital outflows from the country, involving an expanded
definition of interrelated parties. It is worth noting that the OECD has
endorsed the bill, taking into account the nature of international transactions
and the economic features of the country.
“The draft law also proposes
monitoring transfer pricing of transactions conducted on commodity exchanges.
Currently, there is no control over transfer pricing for transactions carried
out on the country’s commodity exchanges. Such transactions frequently occur at
prices below market rates, creating the opportunity for capital outflow from
the country. Therefore, it is proposed to eliminate the above-mentioned
provision from the law,” said Kazakh Deputy Prime Minister and Finance Minister
Yerulan Zhamaubayev.
Editor: Aizhan
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