Article 120. The concept of an overpaid amount of tax, payment to the budget or penalties, fine of the Tax Code of the Republic of Kazakhstan

Home / RLA / Article 120. The concept of an overpaid amount of tax, payment to the budget or penalties, fine of the Tax Code of the Republic of Kazakhstan

 1. An overpaid amount of tax, payment to the budget or penalties is a positive difference between the amounts paid to the budget and the calculated, accrued amounts for this type of tax, payment to the budget, penalties, as well as amounts offset against the payment of another tax, payment to the budget, penalties and refunded to the taxpayer, as of the date of the offset and (or) refund.

 The provisions of the first part of this paragraph shall not apply to the determination of overpaid amounts of taxes and payments to the budget provided for in paragraphs 2, 3 and 4 of this Article.

 2. An overpaid amount of value–added tax is a positive difference between the amount of value-added tax paid (received) to the budget and the calculated and accrued amounts for the tax period, as well as amounts offset against the payment of another tax, payment to the budget, penalties and refunded to the taxpayer, taking into account the calculations of value-added tax for previous tax periods.

 3. Overpaid amounts of taxes or payments to the budget listed in this paragraph are recognized as:

 1) upon confirmation by the relevant authorized state body through an electronic database and (or) on paper of the fact that the taxpayer has failed to perform actions (including as a result of his refusal to perform actions before submitting the relevant documents), for which payment of payments is required, – the amount paid:

 registration fee;

 fees for the issuance of licenses for certain types of activities;

 fee for the issuance of a permit for the use of the radio frequency spectrum;

 fee for issuing a document confirming the residence of a foreigner or a stateless person who is an investment resident of the AIFC;

 State duty;

 fees for forest use;

 2) in case of refusal to issue a document confirming residency to a foreigner or a stateless person who is an investment resident of the AIFC, the amount of the fee paid for the issuance of the specified document;

 3) upon termination of the taxpayer's activity in the production of excisable goods subject to labeling with accounting and control stamps, and the return of previously received such stamps to the tax authority according to the act of acceptance and transfer - the amount of excise taxes paid for such goods;

 4) upon recognition of the auction for granting the right of subsurface use as invalid due to violation of the rules of its conduct established by the legislation of the Republic of Kazakhstan on subsurface and subsurface use, which influenced the determination of the auction winner, – the amount of the subscription bonus paid;

 5) the amount of income tax to be refunded to a non-resident taxpayer applying the provisions of an international treaty ratified by the Republic of Kazakhstan is the amount of income tax paid or transferred.

 4. An overpaid amount for the purposes of a refund is recognized as:

 1) the amount of an unlawfully imposed fine paid for violations in the field of taxation, legislation of the Republic of Kazakhstan on social protection, on compulsory social health insurance – upon cancellation of the fine or reduction of the fine amount;

 2) an overpaid fine amount – when paying a fine for the purpose of executing an administrative penalty;

 3) the amount of tax, payment to the budget, penalties and fines paid – upon cancellation by a court act that has entered into force, the results of an electronic auction conducted by an organization endowed with the functions of selling limited (mortgaged) property.;

 4) the amount of the state fee paid:

 at the end of the case, an amicable agreement between the parties, an agreement on the settlement of a dispute (conflict) through mediation, or an agreement on the settlement of a dispute through a participatory procedure:

 in the courts of the first and appellate instances – in full;

 in the court of cassation instance – in the amount of 50 percent of the amount paid when filing a cassation appeal for a cassation review of the judicial act.;

 5) the amount of the state fee paid in full, if:

 transfer of the case to arbitration;

 the return of a claim or other statement (complaint) or the refusal to accept it, as well as the refusal of notaries or authorized persons to perform notarial actions;

 termination of the proceedings or abandonment of the claim without consideration, if the case is not subject to consideration in court, as well as if the plaintiff has not complied with the procedure for preliminary dispute resolution established for this category of cases or the claim is filed by an incapacitated person.;

 the refusal of persons who have paid the state fee to perform a legally significant action or receive a document before contacting the body performing this legally significant action;

 the return of the cassation appeal for the review of the judicial act in cassation;

 the occurrence of other cases established by the laws of the Republic of Kazakhstan;

 6) an overpaid amount of the state fee when depositing the amount against the payment of the state fee in a larger amount than is required under this Code, except in cases where the plaintiff reduces his claims when filing a claim and other applications (complaints) to the court.

The Code of the Republic of Kazakhstan dated July 18, 2025 No. 214-VIII SAM.

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Republic of Kazakhstan

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From January 1, 2026, to invalidate the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory payments to the Budget" (Tax Code) in connection with the entry into force of the Tax Code dated July 18, 2025 No. 214-VIII SAM.

Article 120. Restriction on the disposal of the taxpayer's (tax agent's) property of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. The tax authority shall restrict the disposal of the taxpayer's (tax agent's) property on the basis of the decision referred to in paragraph 4 of this Article in the following cases::

1) non-repayment of tax debts by a taxpayer (tax agent) classified in accordance with the risk management system as:

of a high level of risk, – after one working day from the date of delivery of the notification of repayment of tax arrears.;

average risk, – after fifteen working days from the date of delivery of the notification of repayment of tax arrears;

2) an appeal by a taxpayer (tax agent), with the exception of a taxpayer subject to tax monitoring, notification of the audit results, which contains information on the amount of accrued taxes and payments to the budget, and penalties, as well as the amount of excess value-added tax returned from the budget and not confirmed for refund.

In this case, in the case specified in this subparagraph, the restriction is made by the tax authority without sending a notification of repayment of tax arrears after three working days.:

from the date of filing a complaint by a taxpayer (tax agent) in accordance with the procedure established by Chapter 21 of this Code;

from the date of exclusion of the taxpayer (tax agent) from the list of taxpayers subject to monitoring by large taxpayers, or termination of the horizontal monitoring agreement.

2. The restriction on the disposal of the taxpayer's (tax agent's) property is carried out by the tax authority in relation to the property:

1) owned by right of ownership or economic management and (or) held on the balance sheet of this taxpayer (tax agent) – in the case specified in subparagraph 1) of the first part of paragraph 1 of this Article.;

2) which, in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, is a fixed asset, an investment in real estate and (or) a biological asset, in the case specified in subparagraph 2) of the first paragraph of paragraph 1 of this Article.

3. Are not subject to restrictions in the disposal:

life support facilities;

electrical, thermal and other types of energy;

food products or raw materials with a shelf life and/or shelf life of less than one year.

The tax authority is prohibited from seizing the limited property of a taxpayer (tax agent) transferred (received) for financial leasing or pledged until the termination of the lease agreement and (or) collateral.

A taxpayer (tax agent) is prohibited from changing the terms of the agreement (extending the term of the agreement, subleasing and/or re-mortgaging) from the date the tax authority restricts the disposal of property until its cancellation.

For the purposes of this paragraph, life support facilities are understood to mean structures, technological installations and aggregates of gas supply, energy supply, heat supply, water supply and sanitation organizations, the termination or suspension of operation of which may lead to disruption of the engineering infrastructure of settlements and territories.

4. A decision to restrict the disposal of a taxpayer's (tax agent's) property shall be drawn up in accordance with the form established by the authorized body and adopted by the tax authority for the amount of:

1) tax arrears according to the data available on the taxpayer's (tax agent's) personal account as of the date of making such a decision, in the case specified in subparagraph 1) of the first part of paragraph 1 of this Article.;

2) taxes, payments to the budget and penalties appealed by the taxpayer (tax agent) in the manner prescribed by Chapter 21 of this Code – in the case specified in subparagraph 2) of the first paragraph of paragraph 1 of this Article.

5. The decision to restrict the disposal of property must be handed over to the taxpayer (tax agent) personally against signature or in any other way confirming the fact of dispatch and receipt. In this case, a decision sent by one of the following methods is considered to have been handed over to the taxpayer (tax agent) in the following cases:

1) by registered mail with notification – from the date marked by the taxpayer (tax agent) in the notification of the postal or other communication organization;

2) electronically – from the date of delivery of the decision by the tax authority to the web application. This method applies to taxpayers (tax agents) who interact with tax authorities electronically in accordance with the legislation of the Republic of Kazakhstan on electronic documents and electronic digital signatures.;

3) if it is impossible to deliver due to the refusal of a signature confirming receipt of such a decision, or absence at the place of location – from the date of the tax survey conducted in accordance with the procedure established by Article 70 of this Code.

6. No later than five working days from the date of handing over to the taxpayer (tax agent) the decision to restrict the disposal of property, the tax authority shall send a copy of such decision to the authorized state bodies for registration of encumbrances of rights to property, the rights to which or transactions for which are subject to state registration, or property subject to state registration.

7. Upon the expiration of ten working days from the date of delivery to the taxpayer (tax agent) of the decision on the restriction of the disposal of the taxpayer's (tax agent's) property, the tax authority shall make an inventory of the restricted property in the presence of the taxpayer (tax agent) by drawing up an inventory of the property in the form established by the authorized body.

If a taxpayer (tax agent) owns property, the rights to which or transactions for which are subject to state registration, or property subject to state registration, such property is subject to inventory in the first place.

An inventory of the restricted property is made with an indication in the property inventory report of the book value, determined on the basis of accounting data of the taxpayer (tax agent), or the market value. The market value is the value determined in the assessment report conducted in accordance with the legislation of the Republic of Kazakhstan on assessment activities.

8. When drawing up an inventory report of the restricted property, a taxpayer (tax agent) is obliged to provide officials of the tax authority with originals or notarized copies of the balance sheet, documents confirming ownership of such property and (or) its economic management for familiarization. Copies of the documents specified in this paragraph shall be attached to the inventory of the restricted property.

The act of inventory of the restricted property is drawn up in two copies and signed by the person who drafted it, as well as by the taxpayer (tax agent) and (or) his official.

The taxpayer (tax agent) is obliged to ensure the safety of the restricted property in an unchanged condition, with the exception of changes due to natural wear and (or) natural loss under normal storage conditions until the restriction is lifted in accordance with the legislation of the Republic of Kazakhstan. In this case, the taxpayer (tax agent) is responsible for illegal actions in relation to the specified property in accordance with the laws of the Republic of Kazakhstan.

In case of non-repayment of tax arrears and non-sale of limited property after two auctions, the tax authority has the right to subject other property of the taxpayer (tax agent) to an inventory by canceling the initial inventory act and drawing up a new inventory act, taking into account the data available on the taxpayer's (tax agent's) personal account on the amount of tax arrears as of the date of drawing up the new inventory act property.

9. The tax authority cancels the decision to restrict the disposal of property and the act of inventory of property drawn up on the basis of such a decision in the form established by the authorized body in the following cases::

1) repayment by a taxpayer (tax agent) of the amounts of tax arrears – no later than one business day from the date of repayment of such arrears;

2) the issuance of a decision by the authorized body or the entry into force of a judicial act canceling, in the part being appealed, the notification of the results of the audit – no later than one working day from the date of such decision or entry into force of such judicial act.;

3) withdrawal by the taxpayer (tax agent) of his complaint about the notification of the audit results – no later than one business day from the date of withdrawal of such complaint.

10. The tax authority sends a message to the authorized state bodies to terminate the encumbrance of property rights.:

1) not specified in the inventory report – no later than five working days from the date of drawing up the property inventory report with a copy of such act attached;

2) the decision to restrict the disposal of which has been cancelled in the cases provided for in paragraph 9 of this Article – no later than five working days from the date of the decision to cancel the decision to restrict the disposal of property, with a copy of such decision attached.;

3) sold by an authorized legal entity, including on account of arrears in customs payments, taxes and penalties, no later than five working days from the date of signing the contract of sale of property with a copy of such contract attached.

11. In the cases specified in paragraphs 6 and 10 of this Article, the tax authority shall send relevant communications to the authorized state bodies on paper or in electronic form by transmission over a telecommunications network.

The footnote. Article 120 as amended by the Laws of the Republic of Kazakhstan dated 04/02/2019 No. 241-VI (effective from 01.01.2019); dated 12/10/2020 No. 382-VI (for the procedure of entry into force, see art. 2).

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