What changes will be made to the pilot project on horizontal monitoring

STATE REVENUE COMMITTEE OF

MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN 

 

Nur-sultan                                                                                09 March 2021

PRESS RELEASE

What changes will be made to the pilot project on horizontal monitoring 

State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan reported, that the amended Rules for conducting a pilot project on horizontal monitoring would come into force on March 12, 2021

        Need for changes to the Rules arose from the results of law enforcement practice.

The amended Rules mainly contain changes of an editorial and clarifying nature, with the exception of amendments that provide for: an increase in the period for pre-project work (from 12 to 18 months);

expanding the categories of taxpayers for  participation in the pilot project and providing the opportunity to participate for taxpayers who implement priority investment projects;

postponement of participation in the pilot project for taxpayers in the field of gas transportation and the mining industry;

the possibility of termination of the agreement on the pilot project on horizontal monitoring ahead of schedule and on other grounds.

The amendments were made by the Order of the Minister of Finance of the Republic of Kazakhstan dated February 23, 2021 No. 138 "On Amendments and Additions to the Order of the Acting Minister of Finance of the Republic of Kazakhstan dated July 1, 2020 No. 648 "On Approval of the Rules for conducting a pilot project on horizontal monitoring", which is registered by the Ministry of Justice of the Republic of Kazakhstan.

A pilot project aimed at improving and modernizing the procedure for conducting horizontal monitoring was launched in the Republic of Kazakhstan in July 2020.

Currently, more than ten taxpayers are participating in the pilot project.

Horizontal monitoring is an effective model of tax administration of large taxpayers, characterized by such key advantages as stability and certainty in the tax burden, increasing the investment attractiveness of companies in the domestic and global markets, the absence of fines and minimizing penalties for taxpayers.