Transfer pricing control (hereinafter referred to as control) is carried out for the following transactions:
1) international business transactions.
2) committed on the territory of the Republic of Kazakhstan, directly related to international business transactions:
for the minerals being sold, extracted by a subsurface user who is one of the parties;
one of the parties of which has tax benefits;
one of the parties of which has a loss according to tax returns for the last two tax periods preceding the year of the transaction;
the parties of which have different corporate income tax rates.
Control is carried out by authorized bodies:
1) monitoring of transactions;
2) checks;
3) other procedures established by the laws of the Republic of Kazakhstan.
The participants of the transaction are obliged to:
1) to perform duties in accordance with this Law in a timely manner and in full;
2) comply with the legal requirements of the authorized bodies;
3) keep records and documentation confirming the validity of the applied transaction price;
4) submit information and reports on monitoring transactions, as well as other documents to the authorized bodies in accordance with the procedure established by this Law.
At the request of the authorized bodies, the participant in the transaction shall submit information and documents confirming the validity of the applicable transaction price within ninety calendar days;
5) at the request of the authorized bodies, during the inspections, provide an economic justification for the applied price, including documents confirming the transaction price and differential, information on the use of one of the methods for determining the market price and other information confirming the applied price.
6) keep local reports if the participant of the transaction is obliged to submit such reports.
Transfer pricing reporting consists of the following types of reporting:
1) local;
2) the main;
3) Cross-country.
Transfer pricing reporting forms and the procedure for completing them are approved by the authorized body.
The authorized bodies carry out checks on transfer pricing in the following cases:
1) when determining the deviation of the transaction price from the market price;
2) on the basis of information on the facts of the application of transfer prices received from government agencies;
3) when conducting inspections carried out by authorized bodies on compliance with the tax legislation of the Republic of Kazakhstan and the customs legislation of the Eurasian Economic Union and (or) the Republic of Kazakhstan in the absence of sources of information on market prices.
State control over the application of transfer prices is carried out in the form of verification and other forms.
The audit is carried out in accordance with the Entrepreneurial Code of the Republic of Kazakhstan. Other forms of State control are carried out in accordance with this Law.
The specifics of the procedure and timing of inspections and other forms of state control carried out by state revenue agencies are determined by the tax legislation of the Republic of Kazakhstan and the customs legislation of the Eurasian Economic Union and (or) the Republic of Kazakhstan.