{"id":150882,"date":"2026-10-12T11:27:52","date_gmt":"2026-10-12T11:27:52","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=150882"},"modified":"2026-10-12T12:18:15","modified_gmt":"2026-10-12T12:18:15","slug":"kazakhstan-tax-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/kazakhstan-tax-disputes\/","title":{"rendered":"Kazakhstan: Tax Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-150882","comparative_guide","type-comparative_guide","status-publish","hentry","guides-tax-disputes","jurisdictions-kazakhstan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">KP Disputes<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/10\/KP_Disputes_logo_white_background_HQ.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">KP Disputes<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/10\/KP_Disputes_logo_white_background_HQ.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Tax Disputes laws and regulations applicable in Kazakhstan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\t<div class=\"additional-information\"><p><em>For currency conversions, the following rates are used: 1 monthly calculation index (MCI) = KZT 4,325; USD 1 = KZT 458.45, based on the official exchange rate of the National Bank of Kazakhstan as at 2 September 2026.<\/em><\/p>\n<\/div>\r\n\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it necessary for a taxpayer to register with the tax authority? Are separate registrations required for corporate income tax and value added tax\/sales tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A Kazakhstan-resident legal entity does not need to register separately with the tax authorities. Kazakhstan\u2019s state registration and tax systems are integrated: when a legal entity is registered with the justice authorities, it is assigned a Business Identification Number (BIN), and that BIN is automatically used as the entity\u2019s taxpayer identification number.<\/p>\n<p>A non-resident legal entity may need to obtain a BIN through Kazakhstan tax registration where it has local tax-registration obligations. This is required, for example, for a non-resident carrying on activities through a permanent establishment and for a non-resident opening a bank account with a Kazakhstan resident bank. A Kazakhstan BIN is also used in the relevant state electronic systems, including public procurement, so a non-resident participating directly in Kazakhstan tenders may also need a BIN for registration and participation.<\/p>\n<p>VAT is subject to a separate registration regime. A taxpayer that is eligible for VAT registration and is not subject to a statutory exclusion must register for VAT once its turnover exceeds the statutory threshold in a calendar year. In 2026, the registration threshold is 10,000 MCI, equivalent to KZT 43,250,000 (approximately USD 94,340). Voluntary registration is available below that threshold. Registration is made by filing the prescribed tax application. No separate registration is required for corporate income tax purposes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In general terms, when a taxpayer files a tax return, does the tax authority check it and issue a tax assessment, or is there a self-assessment system where the taxpayer\u2019s own assessment stands unless the tax authority intervenes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kazakhstan operates a self-assessment system for taxation. The taxpayer independently determines the amount of its tax liability, reports it in the relevant tax returns and pays the tax due. The tax authority does not separately approve or confirm the amount calculated following each tax return filed.<\/p>\n<p>The accuracy of the tax calculation may subsequently be reviewed by the tax authority as part of tax administration. Under desk-based tax control, the tax returns are cross-checked against the information available to the tax authority and, where discrepancies or violations are identified, the taxpayer is issued with a notice. Where necessary, a tax audit may be initiated, following which the amount of the tax liability may be reassessed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a taxpayer amend their return after it has been filed? If so, are there any time limits for doing so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. A taxpayer may amend previously filed tax returns by submitting supplementary tax reporting reflecting changes or additions to the information previously declared.<\/p>\n<p>As a general rule, such amendments may be made within the applicable tax limitation period. For most taxpayers (small and mid-size entities), this period is three years, while for certain categories it is five years, including large business entities and taxpayers carrying on activities under subsoil use contracts.<\/p>\n<p>However, the right to amend tax reporting is restricted in certain circumstances. In particular, supplementary tax reporting may not be filed in respect of taxes and tax periods covered by an ongoing tax audit. It is also restricted in respect of disputed tax periods during the statutory period for filing and consideration of an administrative appeal against a notice issued following a tax audit, including any restored appeal period.<\/p>\n<p>A further consequence of a late amendment should also be taken into account. If supplementary tax reporting is filed less than one year before the expiry of the limitation period and results in a change to the tax liability, the period during which the tax authority may review the relevant amounts is extended by one calendar year.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the main methods by which a tax authority may challenge the amount of tax a taxpayer has paid by way of an initial assessment\/self-assessment. Does the tax authority need any justification to commence such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principal mechanisms for verifying the accuracy of tax calculations are desk-based tax control and tax audits. Desk-based tax control is carried out without initiating an on-site audit, based on tax reporting and other information available to the tax authority. Where discrepancies are identified, the taxpayer is issued with a notice and may either amend its tax reporting or provide explanations and supporting documents. Accordingly, desk-based tax control is primarily intended to give the taxpayer an opportunity to remedy identified discrepancies on its own initiative.<\/p>\n<p>A more substantive reassessment of a tax liability is carried out through a tax audit. A tax audit may be comprehensive, covering all tax obligations; thematic, covering specific taxes or issues; cross-audit, for the purpose of verifying transactions with counterparties; or conducted in the form of a time-and-motion survey to establish actual income and expenses.<\/p>\n<p>A tax audit may not be initiated arbitrarily. Kazakhstan law prescribes specific grounds and procedures for commencing an audit. Where the tax authority initiates an audit, it must issue a separate decision based on statutory grounds and information indicating a possible tax breach. Before such a decision is adopted, the taxpayer may also be given an opportunity to be heard.<\/p>\n<p>If violations are identified following the audit, an audit report is prepared and, where there are grounds for adjusting the tax liability, the taxpayer is issued with a notice of the audit results specifying the additional amounts assessed. It is this notice that serves as the basis for the additional tax assessment and may be challenged by the taxpayer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the time limits for a tax authority to commence a challenge to the taxpayer\u2019s assessment\/self-assessment (disregarding any override of these limits to comply with obligations to provide relief from double taxation under a tax treaty)? Does a tax authority have any options to challenge a self-assessment after expiry of the relevant time limit?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The general limitation period during which the tax authority may calculate, assess or reassess tax is three years following the end of the relevant tax period. A five-year limitation period applies, in particular, to large business entities, taxpayers operating under subsoil use contracts, residents with controlled foreign company obligations, and certain amounts of import VAT paid by way of the offset method.<\/p>\n<p>Once the applicable limitation period has expired, there is no general right to reassess the tax liability. However, the law provides for specific circumstances in which the limitation period may be extended or suspended. For example, where tax reporting is amended less than one year before the expiry of the limitation period, the period for reassessing the relevant tax may be extended by one calendar year. Accordingly, in any particular dispute, it is necessary to consider not only the basic three- or five-year limitation period, but also whether there is any specific statutory ground for its extension or suspension.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud defined under the laws of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kazakhstan law does not define \u201ctax fraud\u201d as a single standalone offence. Depending on the nature of the violation, the relevant circumstances and the amount of unpaid tax, the conduct may give rise to either administrative or criminal liability.<\/p>\n<p>The Code of Administrative Offences provides liability for tax understatements where the conduct does not amount to a criminal offence. There is no separate minimum monetary threshold for administrative liability; fines for tax understatement are generally calculated as a percentage of the additionally assessed tax, depending on the taxpayer\u2019s category.<\/p>\n<p>More serious conduct may constitute criminal tax evasion. Kazakhstan does not impose criminal liability on legal entities. Under Article 245 of the Criminal Code, criminal liability may arise for a responsible individual in connection with the evasion of taxes payable by an organisation, including through failure to file a mandatory tax return, knowingly misstating income or expenses, or concealing taxable items, where this results in non-payment exceeding the statutory threshold. In 2026, the threshold is generally 50,000 MCI (approximately USD 471,700), subject to an additional statutory 10% test. The basic offence is punishable by a fine of two to three times the unpaid amount, community service, restriction of liberty or imprisonment for up to three years, with possible disqualification.<\/p>\n<p>Accordingly, an additional tax assessment does not in itself constitute tax fraud. Amounts below the criminal threshold may generally fall within the administrative regime, while exceeding the threshold does not automatically establish criminal liability: the other elements of the criminal offence must also be established.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is tax fraud treated? Will the tax authority conduct a criminal investigation with a view to seeking prosecution and a custodial sentence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The tax authorities conduct tax control and may identify tax violations and assess additional tax liabilities during a tax audit. Depending on the amount of the additional assessment and the circumstances of the violation, administrative or criminal liability may also arise. However, an additional tax assessment does not in itself establish a criminal offence.<\/p>\n<p>The tax authorities do not themselves conduct criminal investigations or prosecutions. These fall within the competence of the relevant law enforcement authorities. Where the statutory elements of criminal tax evasion are potentially present, including the applicable monetary threshold (generally 50,000 MCI, approximately USD 471,700, in 2026), the matter may be dealt with under criminal procedure. Conversely, tax audits may also be conducted on grounds arising under criminal procedure legislation.<\/p>\n<p>Criminal tax evasion may result in a fine, community service, restriction of liberty or, depending on the circumstances, imprisonment for up to three years for the basic offence, with more serious forms attracting higher penalties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have to abide by any standards or a code of conduct when carrying out audits? Does the tax authority publish any details of how it conducts audits in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Tax audits are formal procedures governed primarily by the Tax Code and applicable secondary legislation. The Tax Code regulates, among other matters, the grounds and types of audits, commencement and duration of an audit, the period under review, requests for documents, the rights and obligations of tax officials and taxpayers, documentation of audit results and appeal procedures.<\/p>\n<p>The Administrative Procedural and Process-Related Code (APPC) is also relevant to procedural matters, including administrative-law principles, participation in administrative procedures and the review of actions or omissions where the Tax Code refers to or does not specially regulate the relevant procedure. In addition, tax officials are civil servants and are subject to the Code of Ethics for Civil Servants, whose ethical standards are mandatory for civil servants and require lawful, conscientious and professional performance of official duties.<\/p>\n<p>The tax authorities do not generally publish a detailed audit manual, individual audit files or a systematic account of how particular audits are conducted in practice. Publicly available material consists principally of the Tax Code, secondary legislation and prescribed forms, together with general official explanatory materials and selected administrative-appeal or court decisions. Such materials may help illustrate the authorities\u2019 approach, but they are not a substitute for the statutory audit procedure and do not amount to a comprehensive published audit practice manual.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information? Does this extend to emails? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. During a tax audit, the tax authorities may formally require a taxpayer to provide documents relevant to the audit. The Tax Code does not provide a general power to issue such an audit request outside an ongoing tax audit.<\/p>\n<p>This power does not give the tax authorities unrestricted access to a taxpayer\u2019s emails. Electronic correspondence may be requested only where it constitutes information or documentation relevant to the subject matter of the tax control being conducted; there is no general right of access to all correspondence.<\/p>\n<p>A taxpayer may challenge unlawful actions or omissions of tax officials before a higher tax authority or a court, including where the taxpayer considers that a request for documents exceeds the tax authority\u2019s statutory powers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the tax authority have the power to compel the production of information from third parties? Is there a right of appeal against the use of such a power?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The tax authorities may obtain information required for tax control from persons other than the taxpayer under review.<\/p>\n<p>This may include information from state authorities, organisations, banks and other sources specified by the Tax Code, as well as information obtained through cross-check audits. The Tax Code expressly recognises a cross-check audit as a separate type of tax audit, allowing the tax authorities to verify and obtain relevant information from a taxpayer\u2019s counterparties.<\/p>\n<p>A third party directly affected by an information request or other action of the tax authority may challenge an unlawful action or omission in accordance with the applicable administrative procedure. The taxpayer under review may also challenge the relevance, admissibility or use of information obtained from third parties when disputing the resulting tax assessment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to settle an audit by way of a binding agreement, i.e. without litigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not generally. Kazakhstan does not provide for a tax-audit settlement mechanism comparable to a binding closing agreement. Once a dispute reaches the administrative court, settlement procedures, including mediation, may be available to the extent that the tax authority has statutory discretion.<\/p>\n<p>A mediation agreement must comply with the law and must not infringe the rights and legitimate interests of third parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer is concerned about how they are being treated, or the speed at which an audit is being conducted, do they have any remedies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Tax Code provides procedural safeguards governing tax audits and a separate right to challenge actions or omissions of tax officials.<\/p>\n<p>A taxpayer may challenge such actions or omissions before a higher tax authority or a court.<br \/>\nIn addition, the Tax Code entitles taxpayers to receive reasoned, clear and comprehensive explanations regarding the actions of the tax authorities. A breach of the principle of transparency constitutes a separate ground for challenge.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If a taxpayer disagrees with a tax assessment, do they have a right of appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The Tax Code expressly provides for both administrative and judicial appeals against the results of tax audits.<\/p>\n<p>For administrative appeals, an Appeals Commission is established under the Ministry of Finance. The contested notice may be upheld or cancelled in whole or in part. In the course of considering the appeal, the authorised body may also appoint a thematic tax audit.<\/p>\n<p>Importantly, filing an administrative appeal with the competent authority or bringing a claim before a court suspends enforcement of the contested part of the tax authority\u2019s decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the right of appeal to an administrative body (independent or otherwise) or to a judicial body (i.e. a tribunal or court)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Kazakhstan, taxpayers may challenge tax decisions through either administrative or judicial proceedings. A notice issued following a tax audit may be appealed administratively to the Ministry of Finance of the Republic of Kazakhstan. The appeal is considered with the participation of the Appeals Commission established under the Ministry of Finance specifically to consider tax and customs disputes. The Commission comprises representatives of state authorities, the National Chamber of Entrepreneurs \u201cAtameken\u201d, and professional and industry associations.<\/p>\n<p>The actions or omissions of tax authority officials may likewise be challenged before a higher tax authority or before the court. In respect of other administrative acts of tax authorities for which tax legislation does not provide a specific appeal procedure, the general rules of administrative procedure apply. As a general rule, the taxpayer must first exhaust the administrative appeal to the superior authority before applying to court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the hearing in public? Is the decision published? What other information about the appeal can be accessed by a third party\/the public?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Administrative appeal proceedings are generally not open to the public. Appeals are considered by the competent authority without a public hearing, and the materials of the proceedings are not available to third parties. Some of the decisions on administrative appeals are, however, published in anonymised form.<\/p>\n<p>Court proceedings, by contrast, are generally open to the public and may be attended by third parties, except in certain categories of disputes or where the court determines that the hearing should be held in private in accordance with applicable law. The public nature of a hearing does not, however, give third parties access to the case file: the right to inspect the case materials is limited to the parties to the dispute and other participants in the proceedings. A hearing may be held in private where this is necessary to protect state secrets, commercially sensitive information or other information protected by law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the procedure mainly written or a combination of written and oral?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Kazakhstan, tax disputes are generally determined on the basis of both written submissions and oral hearings.<\/p>\n<p>Both administrative and judicial appeals are initiated by filing a written appeal or claim together with the relevant supporting documents. The applicant will generally then have an opportunity to present its position orally: in administrative proceedings, through the hearing procedure, including before the Appeals Commission; and in court proceedings, at the preliminary hearing and the substantive court hearing.<\/p>\n<p>The applicant may also request that the dispute be determined in its absence. The parties to the dispute may also request that the dispute be determined on the basis of the written materials submitted (without oral hearing).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a document discovery process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Kazakhstan follows a civil law (continental European) legal system and does not have a broad, party-driven pre-trial document discovery procedure in the Anglo-American common law sense. The parties are not required to disclose in advance the full body of potentially relevant documents.<\/p>\n<p>In administrative court proceedings, each party submits evidence in support of its position, while at the preliminary hearing stage the parties are required to disclose the factual material on which their claims and objections are based. The court also plays an active role and may, on its own initiative, require the production of documents and other evidence from the parties, state authorities and third parties.<\/p>\n<p>There is likewise no comparable discovery mechanism at the administrative appeal stage. However, the competent authority may request additional documents, information and explanations from the taxpayer, tax authorities and other persons where these are necessary for the consideration of the appeal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are witnesses called to give evidence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In court proceedings, yes. The court may summon and examine witnesses, hear expert evidence and assess such testimony alongside documentary and other evidence.<\/p>\n<p>In an administrative appeal against a notice issued following a tax audit, the competent authority does not conduct formal witness examination in accordance with court procedure. The appeal is considered primarily on the basis of documents, explanations and the tax audit materials.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the burden of proof rest with the taxpayer on an appeal against an assessment?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Not entirely. At the administrative appeal stage, the tax authority is required to examine the circumstances of the case comprehensively, fully and objectively, and to verify whether the tax assessment is properly substantiated. It may collect the necessary evidence on its own initiative. The taxpayer, in turn, submits documents, explanations and other evidence in support of the grounds of its appeal.<\/p>\n<p>In court proceedings, the tax authority bears the burden of proving the lawfulness of its decision and of the additional tax assessment. The taxpayer also participates in the evidential process by submitting documents and facts available to it in support of its position and by substantiating the circumstances on which it relies.<\/p>\n<p>If the tax authority fails to establish the lawfulness of the tax assessment, this will weigh against its position. Conversely, if the taxpayer fails to substantiate circumstances on which it relies and which it bears the burden of proving, the relevant argument may be rejected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does an appeal usually take to conclude?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no single \u201ctypical\u201d timeframe in practice, as the duration depends on the chosen avenue of appeal, the complexity of the case and whether further levels of review are pursued. For an administrative appeal against a notice issued following a tax audit, the general time limit for consideration is no more than 30 business days, or no more than 45 business days for large taxpayers subject to tax monitoring. In cases prescribed by law, this period may be extended or suspended, for example where additional review of the case materials is required, the competent authority issues requests for information, or a thematic tax audit is conducted.<\/p>\n<p>A court of first instance must consider an administrative case within a reasonable period, but in any event no later than three months from the date the claim is filed. In a particularly complex case, this period may be extended by up to a further three months.<\/p>\n<p>An appeal may be filed within two months from the date on which the judgment is issued in final form. The appellate court must consider the case within no more than three months, although in a particularly complex case this period may be extended by up to a further three months. Where an appeal is filed, the judgment takes effect after the appeal has been determined: the appellate court\u2019s ruling takes effect on the date it is pronounced.<\/p>\n<p>Accordingly, if the maximum procedural periods are used, approximately eight months may elapse from the filing of the claim until the court decision takes effect, or up to 14 months in a particularly complex case.<\/p>\n<p>A further appeal on points of law to the cassation court is then possible. The filing of a cassation appeal does not prevent the appellate court\u2019s ruling from taking effect, but it increases the overall duration of the dispute. A cassation appeal may be filed within six months from the date on which the judicial act of the appellate court enters into legal force, and the cassation court must consider the case within no more than six months. Accordingly, where all three judicial instances are pursued, the overall duration of the dispute may be approximately up to 20 months, or up to 26 months in a particularly complex case, assuming that the parties make use of the maximum available time limits for filing appeals.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the taxpayer have to pay the assessment pending the outcome of the appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No, not in respect of the disputed amount. The filing of an administrative appeal or a court claim suspends enforcement of the notice issued following a tax audit to the extent that it is challenged. In administrative appeal proceedings, the suspension remains in effect until a decision on the appeal is issued; in court proceedings, it applies from the date the court accepts the case for consideration until the relevant court decision takes effect.<\/p>\n<p>The undisputed part of the tax liability remains payable in accordance with the general rules. Suspension of enforcement does not, however, stop the accrual of late-payment interest on the disputed tax amount. If the dispute is ultimately determined against the taxpayer, the disputed tax becomes payable once the relevant decision becomes final, together with late-payment interest accrued for the relevant period, including the period during which the assessment was under challenge. Any applicable administrative fine is dealt with separately and becomes payable once the relevant penalty decision becomes enforceable following any appeal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on who may conduct or appear in the appeal on behalf of the taxpayer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The restrictions depend on the stage of the proceedings.<\/p>\n<p>At the administrative appeal stage, a taxpayer may act in person or through almost any duly authorised representative. The representative is not required to be an advocate or legal consultant; it is sufficient for his or her authority to be properly evidenced, usually by a power of attorney. However, an official or employee of the administrative authority considering the matter may not act as the taxpayer\u2019s representative.<\/p>\n<p>In court proceedings, the range of permitted representatives is more limited. A legal entity may conduct the case through its director, an employee, an advocate or a legal consultant who is a member of a chamber of legal consultants, as well as through other persons where expressly permitted by law. Accordingly, an external adviser who is neither an advocate nor a member of a chamber of legal consultants cannot represent the taxpayer in court solely on the basis of a power of attorney.<\/p>\n<p>Stricter rules apply in criminal proceedings: a suspect or accused person may defend themselves personally or with the assistance of defence counsel. Where professional legal representation is provided in criminal proceedings, the defence counsel is an advocate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a cost-shifting system whereby the losing party pays the winning party\u2019s legal and professional costs of an appeal?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At the administrative appeal stage before the competent tax authority, there is no general rule requiring the unsuccessful party to reimburse the other party\u2019s costs. In court proceedings, the general principle of allocation of legal costs applies, but reimbursement is not automatic: the successful party must request an award of the relevant costs and substantiate them with supporting evidence. Where a claim is only partially successful, costs are apportioned accordingly.<\/p>\n<p>Costs incurred for external legal representation are recoverable in the amount actually incurred, subject to statutory limits. For monetary claims, the total amount recoverable may not exceed 10% of the amount awarded. For non-monetary claims, the costs must be reasonable and may not exceed 300 MCI. In 2026, this is KZT 1,297,500 (approximately USD 2,830). Accordingly, an award of costs will not necessarily cover the party\u2019s actual legal fees in full.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to use alternative forms of dispute resolution, such as voluntary mediation or binding arbitration? Are there any restrictions on when such alternative forms of dispute resolution may be pursued?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, although the scope for alternative dispute resolution in tax disputes is significantly limited.<br \/>\nIn administrative court proceedings, a taxpayer and the tax authority may settle a dispute, in whole or in part, through conciliation, mediation or a participatory procedure. However, such mechanisms may be used only to the extent that the tax authority has administrative discretion. The court will not approve a settlement if its terms are contrary to law or infringe the rights or legitimate interests of other persons.<\/p>\n<p>Accordingly, the parties cannot generally agree to alter the amount of tax, the applicable tax rate, the tax base or other mandatory elements of the tax liability prescribed by the Tax Code. These matters are governed by mandatory statutory provisions, and the tax authority has no discretion to negotiate a different amount of tax liability with the taxpayer.<\/p>\n<p>A public-law dispute over the lawfulness of a tax assessment cannot be referred to domestic arbitration. Arbitration is available for disputes arising from civil-law relationships, whereas tax disputes are public-law matters.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right of onward appeal? If so, what are the levels of onward appeal before the case reaches the highest appellate court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Kazakhstan provides three ordinary levels of judicial review in administrative cases:<\/p>\n<p>First-instance \u2192 Appeal \u2192 Cassation.<\/p>\n<p>A judgment of the court of first instance may be challenged before the appellate court. The appellate court\u2019s ruling enters into legal force when pronounced. A further cassation appeal may then be brought before the Cassation Court for Administrative Cases within the statutory time limits.<\/p>\n<p>Following cassation review, the Supreme Court of Kazakhstan may, in exceptional cases, review final judicial acts. Such review is not an ordinary fourth level of appeal and is available only on the limited statutory grounds set out in Article 169-1 of the Administrative Procedural and Process-Related Code. These grounds are where the judicial acts:<\/p>\n<p>1. may lead to serious irreversible consequences for human life or health, or for the economy and national security of Kazakhstan;<\/p>\n<p>2. violate the rights, freedoms or legitimate interests of an indefinite group of persons or other public interests; or<\/p>\n<p>3. undermine uniformity in the interpretation and application of legal rules by the courts.<\/p>\n<p>Review by the Supreme Court may take place upon a submission by a Supreme Court judge or a protest by the Prosecutor General, subject to the statutory procedure. A decision of the Supreme Court takes effect when pronounced and is final.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main penalties that can be applied when additional tax is charged? What are the minimum and maximum penalties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, the minimum consequence is an adjustment of the taxpayer\u2019s tax position. Depending on the violation identified, this may include, for example, the disallowance of corporate income tax deductions or input VAT credits, resulting in additional tax being assessed. Late-payment interest is also charged on the outstanding tax liability in accordance with the Tax Code.<\/p>\n<p>Administrative liability may arise separately where the elements of an administrative offence are established. Depending on the type of violation and the taxpayer\u2019s category, administrative fines may be imposed either as a fixed amount in MCI or as a percentage of the relevant tax or transaction amount. For tax understatement, fines may reach 80% of the additionally assessed tax for large businesses; other tax-related offences may carry different sanctions, including fines calculated by reference to the amount of transactions used to avoid payment of assessed taxes (Articles 277, 278 of the Code of Administrative Offences).<\/p>\n<p>Criminal liability may arise where the statutory elements of tax evasion by an organisation are established. In 2026, the basic criminal threshold is generally 50,000 MCI (approximately USD 471,700), together with the statutory 10% test. Depending on the circumstances and seriousness of the offence, criminal sanctions may include fines ranging from two to seven times the unpaid tax, community service, restriction of liberty or imprisonment for up to eight years (Article 245 of the Criminal Code).<\/p>\n<p>Accordingly, the consequences may range from additional tax and late-payment interest to substantial administrative fines and, where the statutory elements of criminal tax evasion are established, criminal fines and imprisonment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If penalties can be mitigated, what factors are taken into account?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Additional tax and late-payment interest are generally not subject to discretionary reduction merely because mitigating circumstances exist, although the Tax Code provides specific cases where late-payment interest does not accrue.<\/p>\n<p>Administrative fines may be mitigated. The court may take into account statutory mitigating circumstances, including remorse, prevention of harmful consequences and voluntary compensation for damage, and may reduce a fine by up to 30% where the statutory requirements are met.<\/p>\n<p>Criminal legislation provides an important relief for tax offences. A person who has committed an offence under Article 244 or Article 245 of the Criminal Code is exempt from criminal liability upon voluntary payment in full of the tax debt and late-payment interest. In the case of Article 245, this exemption does not apply where the offence was committed by a criminal group.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Within your jurisdiction, what areas do you think are most likely to be subject to challenge over the next 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Over the next 12 months, a significant share of tax disputes is likely to concern the practical application of the new Tax Code, which entered into force on 1 January 2026, and the revised tax-administration framework. In particular, disputes may arise over the new audit procedure, the evidential basis for tax adjustments and the interaction between the Tax Code and the general administrative-law safeguards under the APPC.<\/p>\n<p>A second area is the application of the new principles governing taxpayer good faith and the prohibition on reducing tax liabilities through distortion of business facts or transactions entered into for the purpose of non-payment or underpayment of tax. The boundary between legitimate tax planning and transactions treated by the authorities as lacking genuine economic substance is likely to be tested in audits and litigation.<\/p>\n<p>Cross-border taxation is expected to remain a major source of challenge, particularly treaty relief, beneficial ownership, withholding tax, permanent-establishment issues and transfer pricing. In these areas, taxpayers should expect increased focus on the actual functions, risks, cash flows and commercial rationale of arrangements rather than solely on formal contractual documentation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your opinion, are there any areas that taxpayers are currently finding particularly difficult to deal with when faced with a challenge by the tax authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. One of the principal practical challenges is likely to be determining how the new principles of the Tax Code will be applied by the tax authorities and courts to specific business transactions.<\/p>\n<p>Article 30 of the Tax Code is particularly important. On the one hand, it expressly establishes a presumption of taxpayer good faith and places the burden on the tax authority to substantiate a violation. On the other hand, it prohibits the reduction of tax liabilities through distortion of facts relating to business activities or transactions entered into for the purpose of non-payment or underpayment of tax.<\/p>\n<p>As a result, demonstrating the actual economic substance of transactions is likely to become a central issue in many disputes, rather than relying solely on the formal existence of contracts, invoices or payment documents.<\/p>\n<p>For cross-border transactions, taxpayers may also face challenges in demonstrating not only the foreign recipient\u2019s tax residence, but also beneficial ownership, the recipient\u2019s functions and risks, the flow of funds and the commercial rationale for the structure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5645<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/150882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=150882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}