4.4.4. Excises

Who is a payer of excises?

Individuals and legal entities, which produce excisable goods and carry out the excisable types of activity in the territory of the Republic of Kazakhstan, which import the excisable goods in the customs territory of the Republic of Kazakhstan or conduct any other transactions as stipulated for by Article 256 of the Tax Code, shall be deemed the payers of excises.

What is an object of excise taxation?

Transactions, conducted by the excise payers with the excisable goods produced and (or) extracted, and (or) bottled, the wholesale or retail sale of gasoline (except for aviation one) and diesel fuel, as well as any other transactions as stipulated for by Article 259 of the Tax Code shall be deemed the excise taxable object.

List of goods produced in the territory of the Republic of Kazakhstan and imported to the territory of the Republic of Kazakhstan (alcoholic beverages, tobacco goods, passenger cars, crude oil and the others), as well as the types of activity (gambling, organization and conducting of lotteries) subject to excise shall be determined by Article 257 of the Tax Code.

How the tax base is determined?

Article 261 of the Tax Code establishes a procedure to determine the tax base to pay excises. Thus, a tax base for excisable goods the fixed excise rates are stipulated for shall be determined as a volume of excisable goods produced or disposed in kind. A tax base for excisable goods the advalorum excise rates are stipulated for shall be determined as a cost of the excisable goods produced or disposed and calculated on the basis of the prices that do not include excises and VAT, which the producer uses to ship these very goods.

A tax base of imported excisable goods the fixed excise rates are established for shall be determined as a volume of imported excisable goods in kind as stipulated for by Article 276 of the Tax Code. When importing the excisable goods the advalorum excise rates are established for, the taxable base shall be determined as a customs value of imported excisable goods defined in accordance with the customs legislation of the Republic of Kazakhstan.

What is a procedure to calculate and pay excises?

According to Article 269 of the Tax Code, calculation of excise amount shall be done applying the determined excise rate to the tax base. Calculation of excise amount on gambling shall be done applying the excise rate stipulated for a tax period to the number of taxable objects. Excise rates shall be approved by the Government of the Republic of Kazakhstan and shall be determined in percentage (advolorum) to the value of the goods and (or) in absolute amount to the unit (fixed) in kind.

Article 271 of the Tax Code shall stipulate the deadlines to pay excises. Thus, for example, excise on all types of alcohol, alcohol and tobacco goods shall be transferred to the budget not later than on 10^th day after the transaction is completed. In case of transfer of crude oil, including condensed gas extracted in the territory of the Republic of Kazakhstan, for industrial refining, excise shall be paid on a date of transfer.

According to Article 277 of the Tax Code, excise on imported goods shall be paid on a date as determined by the Customs legislation of the Republic of Kazakhstan to pay customs payments. Excises on imported excisable goods subject to marking shall be paid before or on a date of obtaining the excise duty stamps.