The subscription bonus is a one-time fixed payment of the subsurface user for the acquisition of the right of subsurface use in the contract territory (subsurface area), as well as for the expansion of the contract territory (subsurface area) in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
The payer of the subscription bonus is a natural or legal person who has become the winner of the tender for obtaining the right to subsurface use or has received the right to subsurface use on the basis of direct negotiations on granting the right to subsurface use in accordance with the legislation of the Republic of Kazakhstan on subsurface resources and subsurface use, as well as has concluded (received) one of the following subsurface use contracts in accordance with the legislation of the Republic of Kazakhstan:
1) exploration contract;
2) mining contract;
3) combined exploration and production contract;
4) license for geological study;
5) license for the use of subsurface space;
6) a license for prospecting.
The provision of subparagraph 2) of part one of Article 725 of the Code of the Republic of Kazakhstan "On Taxes and other mandatory payments to the Budget" does not apply to subsurface users who have concluded a contract on the basis of the exclusive right to obtain the right to production in connection with commercial discovery within the framework of an exploration contract in the relevant contract territory (subsurface area).
For the purposes of this section, the concept of "tender" conducted in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsurface use is identical to the concept of "auction" conducted in accordance with this legislation.
Terms of payment of the subscription bonus.
Unless otherwise provided by Article 729 of the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the Budget", the subscription bonus is paid to the budget at the taxpayer's location no later than twenty working days from the date of declaring the taxpayer the winner of the tender or the date of signing the protocol of direct negotiations on granting the right to subsurface use in accordance with the legislation of the Republic of Kazakhstan on subsurface resources and subsurface use.
The subscription bonus for licenses for geological exploration, exploration or extraction of solid minerals, prospecting and use of subsurface space is paid to the budget at the taxpayer's location no later than ten working days from the date of issue of such a license.
The amount of the subscription bonus paid under licenses for exploration or extraction of solid minerals is not refunded or set off.
When expanding the contract territory (subsurface area), the subscription bonus is paid to the budget at the taxpayer's location no later than thirty calendar days from the date of making changes to the subsurface use contract on such expansion in accordance with the procedure established by the legislation of the Republic of Kazakhstan.
Upon receipt of a written permission for the right of subsurface use for exploration or production of common minerals used in the construction (reconstruction) and repair of public roads, railways and hydraulic structures, the subscription bonus is paid to the budget at the location of the taxpayer no later than thirty calendar days from the date of receipt of such permission in accordance with the legislation of the Republic of Kazakhstan on subsurface resources and subsurface use.
The declaration on the subscription bonus is submitted by the subsurface user to the tax authority at the location before the 15th day of the second month following the tax period.