Article 197. Decision on the results of consideration of the complaint of the Tax Code of the Republic of Kazakhstan

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 1. The authorized body creates an appeal commission to consider a complaint about the notification of the results of a tax audit.

 The composition and regulations of the appeals commission are determined by the authorized body.

 Upon completion of consideration of the complaint, the authorized body issues a reasoned decision, taking into account the decision of the appeal commission.

 2. Based on the results of consideration of a taxpayer's (tax agent's) complaint against notification of the results of a tax audit, the authorized body makes one of the following decisions::

 1) leave the appealed notification of the results of the tax audit unchanged, and the complaint without satisfaction;

 2) cancel the appealed notification of the results of the tax audit in whole or in part.

 3. The decision of the authorized body on the results of consideration of the complaint shall specify:

 1) the date of the decision;

 2) the name of the authorized body that reviewed the complaint;

 3) the surname, first name and patronymic or full name of the taxpayer (tax agent) who filed the complaint;

 4) the identification number of the taxpayer (tax agent) who filed the complaint;

 5) a summary of the contested notification of the results of the tax audit;

 6) the essence of the complaint;

 7) justification with reference to the norms of international treaties ratified by the Republic of Kazakhstan and (or) the legislation of the Republic of Kazakhstan, which the authorized body was guided by when making a decision on the complaint;

 8) the decision taken.

 At the same time, taking into account the specifics of the procedure for considering a taxpayer's (tax agent's) complaint against notification of the results of a tax audit by an authorized body, as established by this Code, a preliminary decision on the complaint is not required.

 4. The decision of the authorized body based on the results of consideration of the complaint is sent or handed over to the person who filed the complaint, and a copy is sent to the tax authority that conducted the tax audit.

 5. In case of cancellation of the appealed notification based on the results of consideration of the complaint, the tax authority that conducted the tax audit shall issue a notification on the results of consideration of the taxpayer's (tax agent's) complaint against the notification of the results of the tax audit and send it to the taxpayer (tax agent) within the time period established by subparagraph 2) paragraph 1 of Article 83 of this Code.

 6. The decision of the authorized body based on the results of consideration of the taxpayer's (tax agent's) complaint on notification of the results of the tax audit is mandatory for execution by the tax authorities.

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

President

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 197. Conditions for the transfer of property to financial leasing for the purposes of applying tax benefits of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. For the purposes of applying subparagraph 1) of paragraph 2 of Article 288, Article 398, paragraph 6 of Article 427 and paragraph 6 of Article 428 of this Code, the transfer of property to financial leasing must comply with the conditions provided for in this Article.

2. Unless otherwise established by this paragraph and paragraph 3 of this article, financial leasing is the transfer of property under a lease agreement concluded in accordance with the legislation of the Republic of Kazakhstan for a period of more than three years, if it meets one of the following conditions:

1) the transfer of property to the ownership of the lessee and (or) the granting of the right to the lessee to purchase property at a fixed price are determined by the lease agreement;

2) the term of the financial lease exceeds 75 percent of the useful life of the property transferred under the financial lease;

3) the current (discounted) value of lease payments for the entire term of the financial lease exceeds 90 percent of the value of the property transferred under the financial lease.

Secondary leasing is the provision of leasing to another (other) lessee (lessees) of leased items remaining in the lessor's ownership in the event of termination, termination of the lease agreement or its modification due to a change in the number of leased items (hereinafter, for the purposes of this article, the primary leasing agreement), subject to the following conditions::

The date of termination, termination or amendment of the primary lease agreement and the date of conclusion of the secondary lease agreement (agreements) fall within the same tax period established by Article 423 of this Code.;

The secondary lease agreement(s) retains the conditions stipulated in the primary lease agreement, with the exception of conditions for the number of leased items, lease payments and the lease term.;

The secondary lease provides leasing items in an amount not exceeding their total number under the primary lease agreement.;

the value of the leased item transferred to the secondary lease does not exceed the value of the leased item under the primary lease agreement, reduced by the amount of lease payments, except for the lease remuneration paid on the date of termination of the lease agreement, the amount of the remuneration rate under the secondary lease agreement(s) does not exceed the amount of the remuneration rate under the primary lease agreement;

The leased items are provided for secondary leasing for a period of at least three years.

3. They are not financial leasing for the purposes of applying subparagraph 1) of paragraph 2 of Article 288, Article 398, paragraph 6 of Article 427 and paragraph 6 of Article 428 of this Code.:

1) leasing transactions in case of termination of leasing agreements under them (termination of obligations under the lease agreement) before the expiration of three years from the date of conclusion of such agreements, except in the following cases:

declaring the lessee bankrupt in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy and excluding it from the National Register of Business Identification Numbers;

recognition of a natural person-lessee on the basis of a court decision that has entered into force as missing or declaring him dead, incapacitated or with limited legal capacity, establishing disability of the first or second groups, as well as in the event of the death of a natural person-lessee;

the entry into force of the bailiff's decision to return the enforcement document to the lessor due to the absence of property from the lessee, including money, securities or income that may be subject to foreclosure, and (or) if the bailiff takes measures provided for by the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of bailiffs to identify his property, including money, securities, or income that turned out to be fruitless;

the entry into force of a court decision on the refusal of the lessor to foreclose on the property of the lessee, including money, securities or income;

provision of leased items for secondary leasing;

2) leasing transactions in which the amount of lease payments (under the contract and/or actual), excluding remuneration for the first year of the lease agreement, is more than 50 percent of the value of the leased item;

3) leasing transactions in which, before the expiration of three years from the date of conclusion of the lease agreement, the lessee has changed as a result of a change of persons in the obligation, except in the case of its reorganization;

4) leasing transactions in which the lessor has changed as a result of a change of persons in the obligation, except in the case of its reorganization by transformation;

5) transactions on the transfer of property to subleasing.

The footnote. Article 197 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021).

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