Article 507. Specifics of the fulfillment of the value-added tax obligation by subsurface users operating under a production sharing agreement (contract) as part of a simple partnership (consortium) The Tax Code of the Republic of Kazakhstan
1. The tax obligation to prepare and submit value-added tax forms within the framework of the activities under the production sharing agreement (contract) must be fulfilled in one of the following ways::
each participant of a simple partnership in terms of the share of value-added tax attributable to the specified participant;
the operator summarizes the activities carried out under the production sharing agreement (contract), if the terms of the production sharing agreement (contract) authorize the operator to fulfill such a tax obligation.
2. When fulfilling the tax obligation to prepare and submit value-added tax forms by each participant of a simple partnership (consortium):
Invoices for the sale (purchase) of goods, works, and services are issued in accordance with the requirements of Article 496 of this Code.;
The value added tax declaration and the registers of invoices, which are attached to the declaration, are submitted by each participant of a simple partnership (consortium) in the part attributable to such participant.;
The amounts of value added tax calculated, accrued (reduced), transferred and paid (including credited and refunded) are reflected in the personal account of each participant of a simple partnership in the part attributable to the share of the specified person.;
The refund of the excess value added tax is made to the participant of a simple partnership (consortium) who submitted the declaration.;
The procedure for tax administration, including the delivery of an order, notification and tax audit report, is applied to each participant of a simple partnership (consortium) in accordance with the procedure established by this Code.
3. When fulfilling the tax obligation to compile and submit value-added tax forms by the operator, the activities carried out under the production sharing agreement (contract) are summarized:
invoices for the sale (purchase) of goods, works, and services are issued in a generally prescribed manner in accordance with the requirements of Chapter 50 of this Code, indicating the operator's details.;
The value added tax declaration and the registers of invoices, which are attached to the declaration, are presented by the operator summarizing the activities carried out under the production sharing agreement (contract).;
The calculated, accrued (reduced), transferred and paid (including credited and refunded) amounts of value added tax are reflected in the operator's personal account.;
The amount of excess value added tax is refunded to the operator;
the tax administration procedure, including the delivery of an order, notification and tax audit report, is applied to the operator in accordance with the procedure provided for by this Code for taxpayers (tax agents), and these documents are considered to have been handed over to each participant of a simple partnership (consortium) as a taxpayer under a production sharing agreement (contract).
4. The chosen method of fulfilling the tax obligation to prepare and submit value-added tax forms in accordance with this article must be reflected in the tax accounting policy and remain unchanged until the expiration of the period of validity of the production sharing agreement (contract).
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 507. Tax rates on industrial lands located within the boundaries of settlements of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan
1. Industrial lands (including mines, quarries), with the exception of the lands specified in paragraph 3 of this Article and in Article 509 of this Code, shall be taxed at the basic rates established by Article 505 of this Code, subject to the conditions of paragraph 1 of Article 510 of this Code.
2. Base rates on industrial lands (including mines, quarries), with the exception of the lands specified in paragraph 3 of this Article and in Article 509 of this Code, may be reduced by decisions of local representative bodies. The total reduction in tax rates on these lands, taking into account the reduction provided for in paragraph 1 of Article 510 of this Code, should not exceed 30 percent of the base rate.
3. Industrial lands located within a locality occupied by airfields shall be taxed at the base rates established by Article 506 of this Code, subject to the conditions of paragraph 1 of Article 510 of this Code.
Industrial lands located within a locality occupied by airports, with the exception of lands occupied by airfields, shall be taxed at the base rates established by Article 505 of this Code, subject to the conditions of paragraph 1 of Article 510 of this Code.
For the purposes of this Code, an airfield is a land plot specially prepared and equipped to provide take-off, landing, taxiing, parking and maintenance of aircraft.
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