Since January 1, 2024, the State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan has become one of the currency control bodies
The MF RK CGD is charged with monitoring and controlling repatriation of national and (or) foreign currency, working out information on alleged violations, carrying out documentary checks and other forms of currency control, the practice of bringing to responsibility for violations of the requirement to repatriate national and (or) foreign currency, as well as the terms of providing information and supporting documents on currency cases, including transfer to law enforcement agencies.
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Military records | Currency control
Contents
01:54 Introduction to military record-keeping in organizations. Changes in 2023
02:23 Regulatory acts on the basis of which military record-keeping is conducted
03:30 Fines for employers and employees for violations in the field of military record-keeping
06:06 Who are conscripts (draftees) and who is subject to military record-keeping
10:30 Military record-keeping for residents abroad (and those who leave for more than 6 months), individual entrepreneurs, and part-time employees
13:55 Types of military record-keeping: general and special
14:34 Documents for military record-keeping
company registration for military record-keeping
determination of the region for military record-keeping
25:10 Employer responsibilities – reporting to the draft board, maintaining records, and a plan for military record-keeping work
29:30 Recommendations for contracts with non-residents. Currency control
30:35 Settlements with non-residents for import and export contracts (goods, services)
32:30 Important elements of import and export contracts
34:00 Changes that need to be registered and added to Section 1 of the banking control statement
35:23 Recording deviations and the inability to fulfill obligations under import and export contracts
37:12 Loan agreement settlements
38:22 Recording deviations and the inability to fulfill obligations under loan agreements
39:30 Offsetting reciprocal claims in other ways
41:15 Settlements with non-residents not through the bank where the contract is registered
44:24 Answers to questions
45:20 Will the minimum conscription age change from 18 to 21?
46:07 If a female employee concealed her medical education during hiring (for example, she applied for a secretary position), should military record-keeping be conducted for her?
47:10 What fines will there be if the company does not register for military record-keeping?
47:56 Is it necessary to submit reports to the draft board if there are no draftees or conscripts in the company (is zero reporting required)?
49:10 Will the employer be responsible if the employee does not present a military specialty diploma? Does the employer have the right to refuse employment in case of refusal to provide such a diploma?
50:50 Is it necessary to register a separate division with the draft board, or can it be conducted for the parent company?
51:24 Is it mandatory for companies to register with the draft board?
52:00 What will happen if you do not register or maintain military record-keeping?
52:32 In what cases can the draft board conduct inspections?
54:35 Can notifications of hiring/firing/changes be submitted by mail?
54:55 Will the employer be held responsible if the employee does not provide information to the employer?
56:03 The organization has never reported on military record-keeping. Where to start and what needs to be done?
57:56 Our bank does not conduct transactions in euros. How to transfer money to a non-resident contractor?
58:56 Within what timeframe is it necessary to provide data on changes in the CEO for military record-keeping?
1:00:17 Are there limits on the remaining funds when transferring to non-resident contractors?
1:01:27 In what cases is it necessary to provide SV0 to the bank?
1:01:50 In what cases should SV2 be submitted to the bank?
1:02:35 Military record-keeping for employees permanently residing abroad. What to do with them?
1:04:25 There are no military record-keeping marks in the passport, and it does not provide any information. What should the employer do?
1:05:30 The woman’s passport has no marks, and no diploma is provided. What should the employer do?
1:06:30 The employee does not report changes in their status. What should the employer do?
1:07:44 Are the bank’s requirements for compliance with the 10 million per month threshold when settling legally valid?
1:08:09 Is it necessary to submit SV0 to all banks?
1:08:47 Citizen reservation database. If the company is listed, is it necessary to notify the change of CEO?
1:11:33 A power of attorney for military record-keeping – only for relatives or anyone?
1:12:07 If an employee is not of conscription age but has no marks in the passport, is it necessary for them to go to get the mark?
1:12:45 What to do if an employee conceals their education or the existence of military record-keeping documents?
1:14:00 An employee presents a passport with an empty 13th page. What should the employer do?
1:15:34 An employee not of conscription age refers to paragraph 3 of the military service law and refuses to have the mark in the passport about removal. What should be done?
1:16:58 If we have 20 female waitresses with no education, do we need to check each one for the presence of military specialty marks?
1:19:10 At what age does a man cease to be subject to conscription if he has never been on military record-keeping?
Question about military registration and reporting for company branches and rep. offices
Question: The Moscow City Administration has issued us a certificate stating that we are registered in the citizen reservation database, and the certificate is valid until November 1, 2024. However, an employee of the City Administration claims that we should re-submit the enterprise card when opening a separate division and register it with the administration when changing the general director. Is this true, and is it confirmed by legislative acts? In other words, if we open separate divisions every month during the validity of the registration certificate with the Administration, do we need to register each separate division there?
Answer: Regarding military accounting of separate divisions, there are no regulatory guidelines. It is not prohibited to conduct military accounting either by the regions where the separate divisions are located or by a single region where the main division is located. We recommend coordinating the issue of military accounting for separate divisions with your draft board and the City Administration, as there may be specific practices followed by specific draft boards/City Administrations.
If the separate division is not a legal entity, there is no need to separately register it for military accounting and submit an organization accounting card in Form 18. The military accounting for the separate division is the responsibility of the main enterprise.
Details
Date and time
October 26, 2023
15:00-16:30 MSK
Language
Russian
Admission
Free
Platform
MS Teams
Speakers and topics
Ekaterina Matyushkova
- Head of the HR administration team
Basic provisions and rules for maintaining military records of employees in organizations. Changes in 2023
- regulations
- fines, sanctions
- who is subject to military registration: categories of persons liable for military duty
- Military registration for those residing abroad, employees in employment, part-time workers
Organization of military record keeping in the company
- types of military registration
- documentation for maintaining military records
- employer responsibilities
Olga Babayan
- Team leader of the Accounting and Reporting Outsourcing Department
Recommendations on contracts with non-residents within the framework of currency control
- settlements with non-residents under import contracts
- settlements with non-residents under export contracts
- settlements under loan agreements
- set-off of counterclaims
- settlements with non-residents not through the bank of NOC registration
Changes to the procedure for completing a customs value declaration
According to the Decision of the Board of the Eurasian Economic Commission from August 15, 2023 № 112 "On Amendments to the Procedure for filling out the customs value declaration" in the customs document will indicate the actual costs in the national currency. In cases where expenses are reflected in foreign currency, but paid in national currency prior to the declaration of goods. Thus, there will be no recalculation of foreign currency on the day of registration of the customs declaration. This Decision shall enter into force upon expiration of 30 calendar days from the date of its official publication.
Trading with Kazakhstan: practical aspects of import/export, currency control, document flow, and transactions with affiliated entities
Recording and presentations
Contents
00:00 Start
01:17 Interaction with non-resident legal entities in Kazakhstan
01:58 Import/export of goods: practical aspects
02:10 Import
04:54 Goods Accompanying Note (GAN)
06:54 Export
08:10 List of exemptions
10:48 Document flow with non-residents
11:05 Corporate income tax
11:40 Corporate income tax rates
14:35 Mandatory documents required for applying the Convention on Avoidance of Double Taxation (DTA)
16:34 Step-by-step instruction for obtaining residency certificates
20:16 Conditions for applying the convention and minimizing tax risks
21:55 Transactions with related parties
24:25 Currency control in Kazakhstan
25:30 Currency transactions between residents and non-residents. General provisions
31:02 Capital movement operations
33:13 Registration of currency contracts with the National Bank of the Republic of Kazakhstan
35:59 Reporting on capital movement for the National Bank of the Republic of Kazakhstan
37:02 Responsibility for violations of currency control
38:30 Import-export currency control
39:26 Requirement to obtain identification numbers
42:00 Repatriation of national currency
43:00 Responsibility for violations of repatriation rules
43:51 Identification numbers for accounts in foreign banks
45:13 Reporting by legal entities on accounts in foreign banks outside the Republic of Kazakhstan
45:44 Responsibility for violations related to notifications and reports on accounts in foreign banks
46:35 Combating the legalization of income obtained through criminal means. AML. Financial monitoring
53:50 Q&A
54:05 Question about special conditions of an international financial center in Astana
56:10 Is it necessary to register an agreement when changing the subject of obligations if it involves capital movement?
56:54 If the contract amount initially did not meet monitoring requirements but does after changes, should it be registered?
57:26 Can agreements via Electronic Document Workflow be registered with the National Bank of Kazakhstan?
57:43 Do free trade zones in the UAE fall into the list of offshore zones?
Q&A
Please, tell me about legal entities based in the Astana International Financial Center (AIFC). Is it true that there is an offshore scheme where only 3% is paid on turnover and no other taxes, including payroll taxes and no royalties on the purchase of software? What are the limitations, if any? Are there any restrictions on operating within the territory of Kazakhstan?
About corporate income tax:
Participants of the Astana International Financial Center (AIFC) are exempt from paying Corporate Income Tax (CIT) on income derived from the provision of the following financial services within the AIFC territory until January 1, 2065:
- Islamic bank’s banking services;
- Reinsurance and insurance brokerage services;
- Services related to asset management of investment funds, their accounting, custody, as well as providing issuance, placement, circulation, repurchase, and redemption of investment fund securities;
- Brokerage and/or dealer, underwriting services;
- Other financial services determined by the joint act of the AIFC, the central authorized body for state planning, and the state body responsible for guiding tax revenue and other mandatory payments to the budget (currently, a list of 33 categories of financial services provided by AIFC participants is approved, and the income from these services is exempt from CIT).
Additionally, until January 1, 2065, the following ancillary services provided to the AIFC authorities and/or AIFC participants are exempt from CIT: legal, auditing, accounting, consulting services.
The aforementioned services provided by AIFC participants are also exempt from Value Added Tax (VAT). They are also exempt from property tax and land tax on properties located within the AIFC territory.
For the purposes of applying these benefits, AIFC participants maintain separate accounting for their income.
Regarding payroll taxes and mandatory payments:
Foreigners who are employees of the AIFC are exempt from paying Individual Income Tax (IIT) on income derived from activities within the AIFC based on an employment contract concluded with an AIFC participant providing specific financial services until January 1, 2065. Accordingly, citizens of Kazakhstan and foreigners working in the AIFC who do not fall under the aforementioned exemption are subject to paying IIT.
The AIFC regulations do not include any provisions regarding the procedure for pension contributions, social tax, social contributions, mandatory social medical insurance contributions, and other mandatory contributions and payments. Therefore, the procedure for payment of the above-mentioned taxes and other mandatory contributions and payments is regulated by the relevant laws and regulations of Kazakhstan.
Regarding royalties on the purchase of software: Tax exemption does not apply to income received by non-residents – suppliers of goods and services to AIFC participants, which are subject to withholding tax at the source of payment.
Is it only possible to register a contract with the National Bank on paper? Is there no electronic document exchange with the National Bank?
Yes, registration in electronic form is also possible through the National Bank portal – https://nbportal.nationalbank.kz/
Do the free trade zones (FTZs) in the UAE (excluding Dubai) fall into the list of offshore jurisdictions, or are they different concepts?
No, the free trade zones in the UAE are not considered as offshore zones in Kazakhstan.
Is Beliz an offshore jurisdiciton?
Yes, Belize is often considered as one of the offshore jurisdictions.
Details
Date & Time
July 20, 2023
13:00-14:30 MSK
Language
Russian
Admission
Free
Platform
MS Teams
Speakers and topics
Aigerim Netalieva
- Chief accountant at Konsu
Interaction with non-resident legal entities in Kazakhstan
- Import/export of goods - practical aspects
- Services - features of document flow
- Transactions with affiliated entities - changes in legislation
Karina Shamsutdinova
- Lawyer at Konsu
Foreign currency control in Kazakhstan
- Currency operations between residents and non-residents - general provisions
- Capital movement operations - requirements, reports, liability for violations
- Import-export currency control - requirements, reports, repatriation of national currency, and liability
- Assignment of an account number for accounts in foreign banks
- Anti-Money Laundering policies and laws
Simplification of cash transactions between Russian and foreign participants in foreign economic activity
The Ministry of Finance has prepared a draft resolution aimed at providing residents with the opportunity to receive cash from non-residents under export contracts as advance payments, as well as the right for residents to choose the authorized bank for the sale of foreign currency with subsequent crediting not only in Russian currency, but also in other foreign currencies.
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