What foreign funding reporting is provided Printable versionLast update: 16.02.2021
Foreign financing monitoring was introduced in Kazakhstan to ensure transparency in the use of funds received from abroad.
The monitoring does not apply to financial flows and economic activities of entrepreneurs. It is about targeted foreign financing of non-governmental organizations with no relation to entrepreneurial activity.
What does foreign funding monitoring cover?
Monitoring will cover financial funds sent from abroad to individuals and legal entities.
Monitoring applies to individuals and legal entities and (or) structural divisions of a legal entity that received money and (or) other property from foreign states, international and foreign organizations, foreigners, stateless persons for:
- provision of legal assistance, including legal information, protection and representation of the interests of citizens and organizations, as well as their advice;
- studying and conducting public opinion polls, sociological polls (with the exception of public opinion polls and sociological polls conducted for commercial purposes), as well as disseminating and posting their results;
- collection, analysis and dissemination of information, except for cases when the specified activity is carried out for commercial purposes.
Reporting on the receipt and spending of money and other property
Participants of foreign funding monitoring are subject to the reporting to state revenue authorities.
By orders of the Minister of Finance of the Republic of Kazakhstan dated February 20, 2018 No. 241 and 242, the procedure, deadline and forms of notifications (F.017.00) and information (F.018.00) on the receipt and spending of money and other property are determined.
The subjects notify state revenue authorities at the place of subject’s residence/location of the receipt of money and (or) other property from foreign sources in the amount exceeding 1 tenge.
The notification is submitted within 10 working days from the day following the day of receipt of money and (or) other property from foreign sources, with the required filling in the data of the money to be received.
In the event of changes in the conditions for receiving money and (or) other property from sources in terms of changes in the amount received, the timing of the fulfillment of obligations, the Notification is submitted within 10 working days from the day following the day of changes in the conditions of the receipt.
In case of return of the received money and (or) other property from sources, a notification is sent indicating the type "Additional" within 3 working days from the day following the day of return, indicating the registration number of the main notification and filling in all the previously reflected column details, with the exception of columns providing for sum values, which are reflected with a “minus” sign.
In addition, no later than the 15th day of the second month following the reporting quarter, individuals and legal entities will have to submit to the state revenue authorities information on the receipt and expenditure of money and (or) other property received from foreign states, international and foreign organizations, foreigners, stateless persons, in the amount exceeding 1 tenge.
The reporting period for the presentation of information is the calendar quarter in which money was received and (or) spent and (or) other property was sold from sources.
In the absence of data to be reflected, this information is presented with zero values. It is not allowed to make changes and additions to the previously provided Information on the tax period being audited during the period of conducting (taking into account the extension and suspension) of complex and thematic audits.
Information is subject to submission before the full expenditure of money and (or) other property received from the subjects.
Who is not subject to monitoring
The monitoring requirements do not apply to:
- state institutions;
- persons holding responsible government positions, persons authorized to perform government functions, deputies of the Parliament of the Republic of Kazakhstan and maslikhats (representative body) (with the exception of deputies of maslikhats who carry out their activities on an unreleased basis), military personnel, law enforcement and special government officials in the performance of official duties;
- second-tier banks, organizations engaged in certain types of banking operations, insurance organizations;
- large taxpayers subject to monitoring, the list of which is approved by the Government of the Republic of Kazakhstan;
- organizations of preschool and secondary education, educational organizations that implement educational programs for technical and vocational, post-secondary, higher and postgraduate education, as well as autonomous educational organizations and international schools;
- money and (or) other property received in connection with the implementation of advocacy, notarial activities, activities of private bailiffs, mediators, arbitrators, appraisers, auditors;
- subjects of the quasi-public sector;
- diplomatic and equivalent representations of a foreign state, consular offices of a foreign state accredited in the Republic of Kazakhstan, as well as their employees;
- money and (or) other property aimed at the development of national, technical and applied sports, support and stimulation of physical culture and sports, as well as intended for sports events, including international sports competitions, sports events;
- money and (or) other property received on the basis of international treaties of the Republic of Kazakhstan;
- money and (or) other property received in order to pay for treatment or undergo health-improving, preventive procedures;
- money and (or) other property received in the form of proceeds under foreign trade contracts;
- money and (or) other property received for the organization and implementation of international transportation, the provision of international postal services;
- money and (or) other property received within the framework of investment contracts concluded in accordance with the legislation of the Republic of Kazakhstan;
- the amount of dividends, remuneration, winnings previously levied with individual income tax at the source of payment, if there are documents confirming the withholding of such tax at the source of payment;
- other cases established by the Government of the Republic of Kazakhstan.
Responsibility for failure to provide information on foreign financing
Failure to notify is subject to administrative liability in the form of a fine:
- for individuals - 50 MCI,
- for small businesses or non-profit organizations - 100 MCI,
- for medium-sized businesses - 200 MCI,
- for large business entities - 350 MCI.
Submission of false or deliberately false information entails a fine with suspension of activities:
- for individuals - 100 MCI,
- for small businesses or non-profit organizations - 200 MCI,
- for medium-sized businesses - 400 MCI,
- for large business entities - 700 MCI.
Committing an action or inaction again within 1 year after the imposition of an administrative penalty entails a fine with the prohibition of activity: