The procedure for termination of entrepreneurial activity

The procedure for termination of business activities of taxpayers is defined in articles 65, 66, 67 of the Code of the Republic of Kazakhstan "On Taxes and other mandatory Payments to the Budget" (Tax Code).

In accordance with Article 67 of the Tax Code, individual entrepreneurs (hereinafter referred to as sole proprietors) who, at the time of filing a tax application for termination of activity, simultaneously meet the following conditions are subject to termination of activity in a simplified manner:
1) who are not registered as a payer of value added tax;
2) those who do not carry out activities in the form of joint entrepreneurship;
3) those who do not carry out certain types of activities specified in paragraph 1 of Article 88 of this Code;
4) missing in the plan of tax audits or in the list of selective tax audits based on the results of risk assessment measures, or missing in the semi-annual schedule of tax audits conducted in a special order based on risk assessment;
5) those who do not have tax arrears, social payment arrears;
6) those who do not have a high level of risk in the risk management system.

Termination of activity in a simplified manner is applied to sole proprietors who meet the above conditions during the limitation period established by Article 48 of the Tax Code, until the date of filing a tax application for termination of activity or the occurrence of cases established by paragraph 5 of this Article.

In accordance with the norms of Article 67 of the Tax Code, in order to terminate entrepreneurial activity in a simplified manner, an individual entrepreneur submits to the tax authority at the place of his location simultaneously: - a tax statement on termination of activity; - liquidation tax reporting; - a tax statement on the deregistration of a cash register (if any) in the order, defined by Article 169 of this Code.

At the same time, paragraph 3 of Article 208 of the Tax Code provides for the following ways of submitting tax applications to the relevant tax authority.

in person - on paper, including through the State Corporation "Government for Citizens", the Centers of state services of tax authorities (with the exception of tax reporting on value added tax);
by registered mail with a notification - on paper;
in electronic form, allowing computer processing of information.

Liquidation tax reporting is compiled by types of taxes, payments to the budget and social payments, for which the sole proprietor who ceases activity is a payer and (or) a tax agent, for the period from the beginning of the tax period in which the tax application for termination of activity is submitted, until the date of submission of such an application.

At the same time, taxes, payments to the budget and social payments reflected in the liquidation tax reporting shall be paid no later than ten calendar days from the date of submission of the liquidation tax reporting to the tax authority. At the same time, we inform you that since 06/01/2020, the information system of state revenue authorities has implemented automatic de-registration of sole proprietors based on information about the termination of activities. Thus, in the presence of any unfulfilled tax obligations, a refusal is made to de-register as an individual entrepreneur.

We would like to inform you that paragraph 7 of Article 67 of the Tax Code provides that if violations are detected by the tax authority during the limitation period after the termination of the activity of an individual entrepreneur in accordance with this article, the calculation of tax liabilities for taxes, payments to the budget and social payments for activities carried out during the period of registration as an individual entrepreneur is carried out by an individual a person in accordance with the tax legislation of the Republic of Kazakhstan in force at the time of the occurrence of obligations to pay them.

Thus, you need to provide a tax reporting form with the type "Liquidation", simultaneously with a tax statement on termination of activity through the "Taxpayer's Office".

Information about the removal of an individual entrepreneur or a person engaged in private practice from the registration register can be viewed on the official Internet resource of the SRC www.kgd.gov.kz in the "Electronic Services" tab/Search for taxpayers", as well as in the mobile application "E-Salyq Azamat".