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New Amendments to the
Kazakhstan Law “On
Transfer Pricing”
Arman Mendybayev
GRATA Law Firm
Almaty 2010.
Amendments to the Law
Current Provisions
Amended Provisions
price range — two and (or) more
market prices, published in official
information sources
price range – the range of prices,
limited to minimum and maximum
values of market prices, determined by
applying one of the methods for
market price determination, or
information sources in the procedure,
established by this Law
everyday price — a transaction price
established in an officially recognized
information source for a certain period
everyday price – a transaction price,
established for a certain period in
officially recognized information
sources and (or) a contract between
the transaction parties
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Commission (agent’s) fee – a fee for services of a trade broker trader or agent
in respect of sale-and-purchase of goods, work performance, service
rendering, to be paid as an amount or a per cent of the amount of a transaction
performed, specified by an individual agreement between a transaction party
and a trade broker, trader, or agent;
Margin - the amount to be received by a trade broker, trader or agent as a
result of transactions on sale-and-purchase of goods, works performance and
services rendering;
Spread of margin - a range of values, limited to the minimum and maximum
values of the market margin, determined in accordance with the arm’s length
principle under comparable economic conditions;
Remuneration for trade and intermediary duties – compensation by one of
the transaction parties in the form of remuneration or a discount (price cut) to
the price of goods (works, services) sale for performance of trade and
intermediary services;
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• In this case, a transaction party provides for the
information disclosing the components of a margin, if
such information is available to the transaction parties;
and if the margin includes commission (agent’s) fee of a
trade broker, trader and (or) agent and (or) remuneration
for trade and intermediary duties, these components are
not considered by the authorized bodies in the monitoring
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A transaction committed in the territory of the Republic of Kazakhstan,
directly interconnected with an international business transaction is a
transaction for the sale-and-purchase of goods, works performance and
services rendering, which subsequently has been the subject of the
international business transaction
In respect of exchange commodities adjustment of the taxation objects and
(or) tax-related object will be subject to a range of prices and differential
specified in the information sources, unless otherwise provided for by this
article. The list of commodities is to be approved by the Government of the
Republic of Kazakhstan
Adjustment of the taxation objects and (or) tax-related objects should be
reflected in the relevant tax reports to be submitted to the tax authorities
together with the relevant calculations for each transaction separately
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Quotation period established by the contract for goods (works, services) sale shall not
be subject to any changes during twelve months after the establishment thereof.
Quotation period, for the purposes of this Law, must be specified according to the
terms and conditions of the contract within the time interval:
as to oil – not more that five calendar days prior to the transfer of the ownership to the
purchaser of goods (works, services), and not more that five calendar days after the
transfer of the ownership to the purchaser of goods (works, services);
as to exchange commodities, except for oil, - not more than thirty calendar days prior
to the transfer of the ownership to the purchaser of goods (works, services), and not
more that thirty calendar days after the transfer of the ownership to the purchaser of
goods (works, services);
as to non-exchange commodities, prices of which are pegged to the quotation for
exchange commodities, - not more than thirty calendar days prior to the transfer of the
ownership to the purchaser of goods (works, services), and not more that sixty calendar
days after the transfer of the ownership to the purchaser of goods (works, services).
In case of non-compliance of the quotation period, established by the contract for goods
(works, services) sale, with the terms and conditions for determination of a quotation
period, established hereby, market prices for goods (works, services) are to be that as of
the moment of sale of these goods (works, services).
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• An arithmetic average value of price quotations for the quotation
period is determined according to the following formula:
• S = (P1 + P2 +… + Pn ) / n
• S – an arithmetic average value of arithmetic average values of daily
price quotations for the relevant goods (works, services) for the
quotation period;
• P1, P2, … , Pn – an arithmetic average value of daily price quotations
for the relevant goods (works, services) on the days, price quotation
for which has been published during the quotation period;
• n – number of days of the quotation period, price quotation for which
has been published.
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An arithmetic average value of daily price quotations for the relevant goods
(works, services) for the quotation period is determined according to the
following formula:
Pn = (Cn1 + Cn2 ) / 2
Pn – an arithmetic average value of daily price quotations for the relevant
goods (works, services);
Cn1 – the minimum value (min) of the daily price quotation for the relevant
goods (work, service);
Cn2 - the maximum value (max) of the daily price quotation for the relevant
goods (work, service).
In case of no minimum and maximum values of daily price quotations for a
day, the actual value of the quotation for the relevant day is to be accepted as
an arithmetic average value.
THANK YOU!
ANY QUESTION?
Arman Mendybayev
Partner, GRATA Law Firm
Head of Transfer Pricing Department
Mobile: +7-701-717-20-10
Email: [email protected]