KAZAKHSTAN INSTITUTE OF MANAGEMENT, ECONOMICS AND STRATEGIC
RESEARCH
ACADEMIC AND RESEARCH COMMITTEE
KIMEP course syllabus – Spring 2013
1) Basic information
Course code and course title: ACC 3210 Taxation in Kazakhstan
Course meeting time and place:
Tuesday, Thursday 16:00-17:15 #215 / Valikhanov Building
Course Credit: Three (3) credits.
Instructor name: Vladimir Tyutyuryukov, Candidate of Science
Instructor office location and office telephone: 303 / Dostyk Building; 270-44-40
ext.2079
Instructor e-mail contact address: vnt@kimep.kz
2) Instructor availability
Office hours
Monday, Wednesday, 17:30-20:00
Other time upon appointment
Teaching Assistant hours
Asset Syzdykov, ta.bcb.taxation@gmail.com
Monday-Thursday 16:00-18:00, Friday 14:30-18:00, 108 / New Building
3) Course description/overview
At this course students will get acquainted with the provisions and logic of Tax Code of RK
and other tax-related legal acts, including administrative guidance, tax returns, rules
related to tax (de-) registration, tax control procedures and tax dispute resolution
procedures. Students should also distinguish between tax evasion and tax avoidance,
understand the key anti-avoidance provisions and also study the relationship of Ethics and
Tax Planning.
The course covers all Kazakhstani major taxes and their implications to taxpayers (with
emphasis on corporate income tax, personal income tax, value added tax and property
taxes). The course also discusses the special tax regimes and the tax issues of crossborder trade (application of double tax treaties and Common Economic Space regulations
in Kazakhstan).
The emphasis of this course lies in applying academic knowledge of Tax Code provisions
to solve business cases. In these cases the students will follow the business activities of a
company, discovering the tax consequences of the company’s actions and learning the
calculation and documentation procedures required by the tax law.
The course will require active student participation, which is also to be done through
obligatory self-study presentations.
4) Learning objectives
The course is designed with the intention to develop student’s research and presentation
skills, as well as the analysis of critical tax issues in various business situations. By the
end of this course, a student will reach the following learning objectives:
Knowledge: understanding of the Kazakhstani tax system, the key sources of tax law, the
application of all Kazakhstani major taxes in business activities;
Skills: ability to apply the norms related to all major taxes in Kazakhstan, to determine tax
liability in particular cases and to analyze the critical tax issues in various business
situations;
Participation: development of students’ skills in tax research and case analysis via self
study presentations and case solving, as well as optional participation in special research
projects and tax conferences. Exceptional students may find the opportunity to start with
their academic writing and they may consider advancing their research project into a
research paper, which could be considered for publication.
5) Relationship of course and program
Pre-requisites: ACC3205 Principles of Taxation
Completing this course will prepare you for these other courses in the BCB
program: ACC4240 Taxation of Multinational Enterprises
6) Teaching methodology
The teaching methodology of this course includes various approaches, including lectures,
self-study presentations and case solving, supplemented by class discussions.
PRESENTATIONS
-
The topics and days of presentations will be scheduled in advance.
-
The presentations are to be prepared by each student separately.
-
Students have to submit a draft of the presentation 1 week before the presentation
day. After feedback is received, students have to consider the comments and make
necessary changes. The final draft deadline is 3 days before the presentation day.
-
Those missing the final draft deadline will not be permitted to present and
lose points for the presentation. Reason: to ensure the quality of the
presentation.
-
Other students and the instructor will assess the presentations and the grade
will be assigned based on these assessments.
7) Assessment scheme
Attendance and
participation
10%
Self-study
presentations (1-2
people)
Up to 10% per presentation
Midterm testing
40% (two exams of 20% each, covering topics studied before
mid-term; case solving)
Final Exam
40% (comprehensive; case solving)
Total
100%
Bonus assignments
Up to 10% per assignment (rate will be announced; these
include in-class discussions, quizzes, research projects,
participation in conferences etc.)
It shall cover a comprehensive overview of tax issues assigned
with the focus on Kazakhstan (worldwide comparison is a plus).
The illustration of tax calculation (or tax planning effect) is a
must. Students are expected to consult with the instructor on the
content of presentations at least one week prior to their
presentations.
Research for news: up to 2 points for summarizing the news
(summary in form of short presentation should include the news
and explanation of its effect for taxpayers/ government/ other
stakeholders); not more than three news per student per
semester
8) Grading scale
90 to 100
Pass
A+ 57 to 59
Pass
D+
85 to 89
Pass
A
53 to 56
Pass
D
80 to 84
Pass
A-
50 to 52
Pass
D-
77 to 79
Pass
B+ below 50 Fail
73 to 76
Pass
B
Incomplete I
70 to 72
Pass
B-
Withdraw
67 to 69
Pass
C+
63 to 66
Pass
C
60 to 62
Pass
C-
F
W
9) Course policies and instructor’s expectations of students
The students are expected to exercise ethical behaviour during classes and exams and
compliance with KIMEP policies.
Students are encouraged to have full attendance, which will count 10% to the total grade.
Late comers will not be counted. Each student is responsible to monitor his / her own
attendance. Due to academics/research activities of the professor, certain classes might
be cancelled and replaced by extra sessions or guest lectures. Attendance on these extra
classes will be rewarded by bonus points and will be scheduled in such a way as to avoid
scheduling conflicts of students.
Active participation (participation in in-class discussion, solving problems in class, bonus
assignments) will be remunerated by bonus points.
Use of mobile phones during lectures and exams is prohibited. Students should use only
calculators for the computations.
DISCIPLINARY MATTERS FOR CONDUCTING EXAMS
Every event of cheating during the exams should be punished.
In the case of written evidence (e.g. related to the topic notes made in the dictionaries or
on the separate sheets) the student will receive 0 points for this Exam.
Any other cases of cheating (e.g., talking, looking in another's paper, turning to the
neighbor, continuing writing after instructor announced the end of the exam) will be
penalized by subtracting 30 points from the student's grade for this Exam.
If the student will repeat cheating during one of the Exams, then this will lead to 0 point
grade for the Exam.
10) Instructional resources
Required texts
The Tax Code of the Republic of Kazakhstan effective in 2013 (available on L: Drive, on
web-site of Tax Committee of Ministry of Finance (www.salyk.gov.kz) and in Paragraph
database)
Laws and other legal documents referred to in the course may be found in Paragraph
database (available in library) or at www.pavlodar.com (on-line)
OECD Model Tax Convention (available on L: Drive and at www.oecd.org) and selected
Kazakhstani tax conventions (available on L: Drive, on web-site of Tax Committee of
Ministry of Finance (www.salyk.gov.kz) and in Paragraph database)
Handouts from instructor
Optional texts:
V.Thuronyi. Tax Law Design and Drafting (available on L: Drive and at
www.imf.org/external/pubs/nft/1998/tlaw/eng/ )
A. Khudyakov, “Tax Law of RK”, General and Special parts
300 questions and answers
11) Period-by-period schedule*
Week
#
1
Week
dates
Topics
Introduction to
the course
Recap of the
taxation
2
Overview of tax
system of
Kazakhstan
3
Registration of
Learning points
General definitions (terms tax,
taxpayer, jurisdiction; relationship
between tax base, tax rate, and tax
revenue; types of taxes)
Sources of tax law
Business regulation environment in
Kazakhstan
Tax regulation environment in
Kazakhstan (Tax Code, international
tax agreements, other laws, legal
acts of Government, Ministry of
Finance and tax authorities, court
decisions)
Structure of the Tax Code of
Kazakhstan (TC RK)
Participants to tax relations, their
roles, their rights and obligations in
Kazakhstan
Principles of taxation adopted in
Kazakhstan
Difference between adoption and
enforcement of a law
Ethics in taxation: ethical principles
of taxation, ethics of tax officers,
ethics of taxpayer
Types of business presence:
Reading materials
Activities
(subject to amendment)
Tax Code of
Kazakhstan:
contents, Art.2-9,
13,14,15, 19, 20
Article “Ethical
principles of taxation”
Code of ethics of civil
servants
Code of ethics of tax
officers
TC RK chapter 81
Student presentations:
Week
#
Week
dates
Topics
Learning points
Reading materials
Activities
(subject to amendment)
the company
 Individual entrepreneur
 Independent company
 Subsidiary
 Branch
 Representative office (RepOffice)
 Franchisee
Procedures for registration of
company
Procedures for registration of
taxpayer
Application forms for
registration of
business
Template of charter
of joint-stock
company (AO)
Template of charter
of limited liability
company (TOO)
4
Tax regimes for
small
businesses
Special regime of patent (eligible
taxpayers, main elements)
Special regime of simplified tax
return (eligible taxpayers, main
elements)
Tax Code
Ch.57 Special tax
regime for small
businesses
 Each type of business presence
 Tax compliance: notion and
basic rules (tax accounting,
documentation, tax registers,
filing of the forms)
 Tax accounting policy
 Tax reporting: preparing tax
return, its submitting,
amendments
In-class discussion:
 Implications of different types of
business presence
In-class activity:
Comparison of special tax regimes
and general tax regimes
5
Property
Taxation
Taxpayers, taxable items, tax bases,
tax rates, tax periods, calculations
and reporting requirements for the
following taxes:
 Tax on property of individuals
 Tax on property of legal entities
and individual entrepreneurs
 Land tax
 Motor vehicles tax
Tax Code
Section 13 Motor
vehicles tax
Section 14 Land tax
Ch.57 Tax on
property of legal
entities and individual
entrepreneurs
Ch.58 Tax on
property of
individuals
Student presentations (including
case studies):
 Tax on property of individuals
 Tax on property of legal entities
and individual entrepreneurs
 Land tax
 Motor vehicles tax
Week
#
6
7
Week
dates
Topics
Learning points
Personal
Taxpayers, taxable items, tax bases,
Income Taxation tax rates, tax periods, calculations
and reporting requirements for the
following taxes:
 Tax on income of employees
(including deductions)
 Tax on interest, dividends, capital
gains, winnings, gifts
 Tax on income of individual
entrepreneurs
 Tax on property income
Income not considered taxable
income
Exempt income
Reporting requirements for
taxpayers and tax agents
Pension and social security
contributions
Corporate
Corporate Income Tax:
Income Tax
 Taxable item
 Deductible and non-deductible
expenses
 Tax treatment of fixed assets
(acquisition, depreciation,
disposal, maintenance and repair)
 Exempt income
 Adjustments
Reading materials
Activities
(subject to amendment)
Tax Code
Section 6 Personal
income tax
Law “On pension
system in RK” #136-I
Law “On obligatory
social security” #405II
Student presentations (including
case studies):
 Difference between income
taxed at source and at hands of
a person
 Specifics of calculation of tax on
income of employee (including
fringe benefits)
 Specifics of taxation of
investment income (interest,
dividends, capital gains)
 Reporting requirements for
taxpayers and tax agents
 Taxation of winnings, gifts,
stipendiums, pensions
Tax Code
Section 4 Corporate
income tax
In-class discussion:
 Examples of income to be
included into total annual
income
 Tax treatment of payments to
employees – CIT and PIT
implications
 Loss-carry forward: how it
works?
Week
#
Week
dates
Topics
Learning points
Reading materials
 CIT withheld at source
8
Exam 1
9
Midterm Break
10
Corporate
Income Tax –
advanced
11
Taxation of
Subsurface
Activities
Eligible subsurface activities
Taxpayers, taxable items, tax bases,
tax rates, tax periods, calculations
and reporting requirements for the
Law of RK # 291-IV
on subsoil and its
use
Tax Code
Activities
(subject to amendment)
Student presentations (including
case studies):
 Tax treatment of fixed assets
(acquisition, depreciation,
disposal, maintenance and
repair)
 Expenses deducted within
limits: types, reasoning,
calculation
In-class case study
 Calculation of CIT
Student presentations (including
case studies):
 Financing company’s activities
and their tax implications (tax
treatment of investments and
related income at hands of
investee and investor)
 Withholding taxation of
corporate income
 Taxation of non-profit
organizations
Filling in CIT tax return
Student presentations:
 Regulation of use of subsoil
resources in Kazakhstan
 One-off payments by
Week
#
12
Week
dates
Topics
Value Added
Tax
Learning points
Reading materials
following taxes:
 Mineral extraction tax
 Excess profits tax
 One-off payments
 Rental tax on export
Section 11 Taxation
of subsurface users
Registration for VAT purposes
(criteria, obligatory and voluntary
registration, deregistration; art.568571 TC RK).
VAT-able and non-VAT-able
transactions. Place of supply rule for
goods and services.
VAT offset. Treatment of input VAT
in case of exempt activity.
VAT invoices – their content and
use.
Tax Code
Section 8 Value
added tax, also
Art.568-571
Activities
(subject to amendment)
subsurface users
 Mineral extraction tax: taxable
resources, exempt resources,
valuation of minerals,
calculation and reporting
 Excess profits tax: approach to
calculation in Kazakhstan
 Product-sharing agreements:
how they work and why is
current treatment (i.e. why
Kazakhstan abolished its policy
of PSAs)
 (optional) Experience of mineral
extraction taxation in other
countries
In-class case study
 Calculation of MET
 Calculation of EPT
Student presentations:
 Registration of VAT payers
 Turnover: taxable at general
rate, taxable at 0% rate and
non-taxable
 Place of supply rule (with
examples)
 Taxation of import
 Taxation of export
 Offset of VAT
Week
#
13
14
15
Week
dates
Topics
Excise duties
International
Taxation –
fundamentals
International
Taxation –
advanced
Learning points
Reading materials
VAT in cases of export and import.
Confirmation of export. Reverse
charge VAT mechanism.
Excise duties: excisable goods and
transactions, registration of excise
payers, tax rates, reporting
requirements
Exam 2
Residents, non-residents and
permanent establishment (PE) –
criteria and tax implications
Network of tax treaties of
Kazakhstan. Conclusion and
ratification of tax treaties. Application
of treaties (priority of treaty over
domestic rules, certificate of
residence).
Double Taxation Avoidance Treaties
(DTTs): scope, structure, treatment
of particular types of income, nondiscrimination, mutual agreement
procedures
Anti-avoidance rules in Kazakhstan:
 Beneficial ownership – concept
and rules
 Thin capitalization – concept and
rules
 Controlled foreign company –
concept and rules
Activities
(subject to amendment)
Student presentations:
 Overview of excise duties
In-class case study
Calculation of VAT
Tax Code
Section 7 Features of
international taxation
OECD Model Tax
Convention, selected
DTTs of Kazakhstan
Law “On transfer
pricing” # 67-IV
Student presentations:
Tax Code
Section 7 Features of
international taxation
OECD Model Tax
Convention, selected
DTTs of Kazakhstan
Law “On transfer
Student presentations:
 Explanation of anti-avoidance
rules, their application and
consequences
In-class case study
 Calculation of tax liabilities of
residents from abroad and of
- Residents and non-residents
- Permanent establishments
- Structure of Double Tax
Avoidance Treaties
- Application of Double Tax
Avoidance Treaties
Week
#
16
Week
dates
Topics
Learning points
 Transfer pricing – concept and
rules
Tax implications of Common
Economic Space
Tax
Types of tax control.
Administration in In-house tax control. Taxpayer’s
Kazakhstan
account and reconciliation with tax
authorities.
Tax audit, its types, timing and
results. Transfer pricing control.
Tax appeal – what could be subject
to appeal, procedures to appeal,
consequences of appeal to tax
authorities and to court.
Methods to secure execution of tax
liability (late payment interest, freeze
of bank account, forced collection of
tax debt).
Final Exam
*Subject to further changes.
Reading materials
pricing” # 67-IV
Tax Code, Ch. 82,
83,85, 86, 89, 93
Activities
(subject to amendment)
non-residents from Kazakhstan
Student presentations:
 In-house tax control
 Procedures of tax audit
 Tax Appeal procedures