Made clarifications necessary for determining the list of organizations in the oil sector

The Law of the Republic of Kazakhstan dated January 5, 2021 No. 407-VI "On Amendments and additions to certain Legislative Acts of the Republic of Kazakhstan on customs regulation and business activities" introduced clarifications necessary for determining the list of organizations in the oil sector.

 

In paragraph 3 of Article 22 of the Budget Code of the Republic of Kazakhstan, clarifying amendments were made, according to which organizations of the oil sector include:

1) legal entities engaged in the production of crude oil, gas condensate;

2) legal entities that have concluded contracts for the exploration of crude oil, gas condensate;

3) the recipient on behalf of the state of minerals transferred by the subsurface user for the performance of a tax obligation in kind.

The list of organizations of the oil sector for the next financial year is approved by December 20 of the current financial year jointly by the central authorized body for budget execution and the state body responsible for state regulation in the field of oil operations, conclusion and execution of subsurface use contracts.

These changes are clarifying in nature, as the above list of organizations of oil sector approved by the joint order of the Ministry of Finance of RK and Ministry of economy of RK.

The above amendments will come into force in 2019, as the list for 2020 has already been approved in 2019, taking into account the proposed amendments.