Kazakhstan Transfer Pricing Law Passed

by Tatiana Smolenskaya, Tax-News.com, Moscow

18 March 2010

The Kazakhstan parliament has passed in its second reading a bill on amendments and additions to the Law on Transfer Pricing.

The Majilis Committee for Finance and Budget said the main objective of the bill was "to improve further the mechanism of control over transfer pricing" and specify the "terms of transfer of secondary leases," according to the Kazakhstan Gazeta.

The original law on transfer pricing, which came into force on January 1, 2009, was adopted at a time of rapid growth in commodity prices and was intended to prevent losses of state revenue. However, the world market price fluctuations, especially a sharp decline in commodity prices over a short time period in 2008, led to serious problems associated with the legislation on transfer pricing, especially as regards the pricing of commodities, and it was decided that changes and additions in the legislation were necessary.

During consultations on the proposed amendments, accountants urged that the whole issue of transfer pricing should be resolved in the context of world practice on transfer pricing and also take into account the reasonable objective of avoidance of double taxation. There were also concerns that documentation requirements were not adequately defined.

This comprehensive report in our Intelligence Report series examines the global and national landscapes in which companies can use transfer pricing to improve their after-tax returns, including summaries of recent developments in design of the corporate supply train, the usefulness of 'offshore' in international corporate tax planning, and a section covering the spread of DTAAs and CFC laws. It is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report16.asp

 

Tags: tax | law | legislation | transfer pricing | Kazakhstan

 






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