Article 5. Rights and obligations of the parties to the transaction and participants in the international group of the Transfer Pricing Law

Home / RLA / Article 5. Rights and obligations of the parties to the transaction and participants in the international group of the Transfer Pricing Law

1. The parties to the transaction and the members of the international group have the right to:

1) provide the authorized bodies with an economic justification for the applied price, including documents confirming the transaction price and differential, information on the use of one of the methods for determining the market price and other information confirming the applied price;

2) to receive information and clarifications from authorized bodies on the legislation of the Republic of Kazakhstan on transfer pricing;

3) represent their interests in matters arising in connection with the exercise of control, personally or through their representative or with the participation of a tax consultant;

4) provide the authorized bodies with an economic justification for the applied price and other information confirming the applied price during the monitoring and appeal of the notification of the results of the tax audit.;

5) appeal, in accordance with the procedure established by the laws of the Republic of Kazakhstan, notifications on inspection reports and actions (inaction) of officials of authorized bodies;

6) independently adjust the transaction price and (or) taxable objects, as well as objects related to taxation, prior to verification;

7) conclude agreements with authorized bodies on the application of transfer pricing.

At the same time, a member of the international group also has the right to authorize another member of the international group to prepare and (or) submit cross-country and (or) basic and (or) local reports on his behalf.

2. The parties to the transaction and the members of the international group have other rights established by the laws of the Republic of Kazakhstan.

3. The parties to the transaction are obliged to:

1) perform duties in accordance with this Law in a timely manner and in full.;

2) comply with the legal requirements of authorized bodies;

3) keep records and documentation confirming the validity of the applicable transaction price;

4) submit to the authorized bodies information and reports on monitoring transactions, as well as other documents in accordance with the procedure established by this Law.

At the request of the authorized bodies, the participant in the transaction submits information and documents confirming the validity of the applicable transaction price within ninety calendar days.;

5) at the request of the authorized bodies, during the inspections, provide an economic justification for the applied price, including documents confirming the transaction price and differential, information on the use of one of the methods for determining the market price and other information confirming the applied price.

6) keep local reports if the participant in the transaction is required to submit such reports.

4. The participants of the international group are obliged to:

1) perform duties in accordance with this Law in a timely manner and in full.;

2) comply with the legal requirements of authorized bodies;

3) submit to the authorized body an application for participation in an international group in accordance with Article 5-1 of this Law;

4) maintain basic and (or) cross-country reporting, if a member of an international group has an obligation or requirement to submit such reporting.;

5) submit transfer pricing reports to the authorized body in accordance with the provisions of this Law, with the exception of the cases specified in subparagraph 6) of this paragraph.;

6) at the request of the authorized bodies, submit basic and (or) cross-country reports in accordance with the provisions of this Law.

5. The participants in the transactions and the participants in the international group perform other duties stipulated by this Law.

The Law of the Republic of Kazakhstan dated July 5, 2008 No. 67-IV.

President

Republic of Kazakhstan

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