STATE REVENUE COMMITTEE OF THE

MINISTRY OF FINANCE OF THE REPUBLIC OF KAZAKHSTAN

PRESS RELEASE

SUBSOIL USERS, EXTRACTING COMMON MINERALS, INDICATE CONFLICTING DATA IN THE TAX REPORTING

Cameral control of the Declaration on the tax on mining (TRF 590.05 and TRF 590.04) for the period of 2016-2017 is carried out by the State Revenue Committee of MF RK. Control is carried out in respect of subsoil users engaged in the extraction of common minerals (hereinafter – CM).

Also, the analysis of Annex 300.07 (register of invoices for goods, works, services) to the Declaration on value added tax in respect of subsoil users in Almaty and Akmola regions, as a result of which differences were identified in determining the weighted average sales price in the Declaration on mineral extraction tax (hereinafter –MET) and the sales price reflected in the TRF 300.07.

In accordance with paragraph 1 of article 341 of the Code of RK "On taxes and other mandatory payments to the budget", the tax base for the calculation of MET on CM is the value of the volume extracted by the subsoil user for the tax period of CM.

For the purpose of calculating met, the value of the subsoil user's extracted CM for the tax period is determined on the basis of the weighted average sale price of CM, including those that have undergone minor processing and cleaning, taking into account VAT and transportation costs.

In this regard, subsoil users need to analyze previously submitted tax reports within the limitation period and, if necessary, make appropriate changes and additions to it.

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State Revenue Committee

Ministry of Finance of the RK

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