memleket.kz

    Can a low extraction coefficient be a ground for an audit?

    ·
    Question

    Can a low extraction coefficient be a ground for an audit?

    Answer

    A low extraction coefficient itself is not an absolute ground for appointing an audit or refusing a VAT refund.

    However, it is one of the risk indicators used by the risk management system when applying measures to minimize tax risk in relation to business entities.

    It is worth noting that since January 1 of this year, provisions of the Tax Code have entered into force, providing for the mandatory application of this indicator when appointing audits. In particular, comprehensive audits are not appointed for tax periods in which the taxpayer's extraction coefficient is at least 90 percent of its upper indicator.

    Related materials

    All questions
    Question

    Please clarify the procedure for applying VAT exemption when selling medicines included in the list approved by the Government of the Republic of Kazakhstan. Also confirm whether the VAT exemption applies to the turnover of such medicines at all stages of their distribution in accordance with subparagraph 28) of Article 474 and subparagraph 17) of paragraph 1 of Article 479 of the Tax Code of the Republic of Kazakhstan.

    Answer

    In accordance with Article 503 of the Tax Code, starting from January 1, 2026, the VAT rate is 16 percent. A reduced rate of 5 percent (from January 1, 2027 – 10 percent) applies to taxable turnover on the sale and import of medicines, medical devices, medical device components,...

    ·
    Question

    According to the new Tax Code, the valuation of property of legal entities must be conducted once every 3 years. At the same time, the State Revenue Department for Turkestan city sent a notification about property revaluation. Please clarify which position should be followed.

    Answer

    Yes, the new Tax Code provides for mandatory revaluation of real estate for the purpose of determining the tax base for property tax at least once every 3 years. Since this norm was introduced from 2026, the first mandatory revaluation must be conducted by the end of 2028. At the...

    ·