Transfer pricing in Kazakhstan

Transfer pricing in Kazakhstan at a glance

Regulation Type Not an OECD member, but follows OECD guidelines
Are there specific transfer pricing regulations? Yes
Submission deadline 15 May of the year following the reporting year for transactions of goods
Submission deadline upon request 90 days
Annual update required Yes
Official language requirements Russian and Kazakh
Potential impact of penalties 350 MCI


Kazakh tax law

Rules for transfer pricing in Kazakhstan are based upon:

  • The Law of the Republic of Kazakhstan, No. 67-IV on Transfer Pricing, of 5 July 2008, regulates transfer pricing. Additionally, transfer pricing in Kazakhstan is regulated by the following subordinate legal acts:
  • Instruction on examining transfer pricing in international business transactions (pending approval of the Ministry of Finance)
  • Rules for monitoring transactions (No. 62 of 12 February 2009)
  • Rules for concluding agreements on the application of transfer pricing (No. 1197 of 24 October 2011)
  • Rules on the procedure for cooperation with authorized bodies in examining transfer pricing issues (No. 129 of 26 March 2009)
  • List of goods (including work and services) in international business transactions which are subject to transaction monitoring (No. 293 of 12 March 2009)
  • List of officially recognized sources of information on market prices (No. 292 of 12 March 2009)


Although Kazakhstan is not a member of the OECD, the currently effective transfer pricing law in Kazakhstan has some common features with the OECD Transfer Pricing Guidelines (OECD Guidelines).


Accepted methods

Accepted methods are:

  • The comparable uncontrolled price (CUP) method
  • the cost plus method
  • the resale price method
  • the profit split method
  • and the net profit method.

Priority of methods

The CUP has first priority. If it is impossible to apply the CUP, other methods may be used, following the hierarchy as shown above.

Documentation requirements

Information that should be included in the documentation:

  • Documentation confirming the justification of prices used
  • The method used to determine the market price and the source of information used
  • A description of the goods (work, services), contractual terms, business strategy, and information on the trade broker’s margin
  • Other documents and data proving the consistency of the prices applied with market prices


Documentation in Russian and Kazakh is generally accepted. However, the reporting forms for transfer pricing monitoring must be in Russian.

Requirements to prepare documentation annually 

Rules for transfer pricing in Kazakhstan prescribe that documentation must be prepared by 15th of May of the year following the reporting year for transactions in goods (works, services) subject to monitoring. This means an annual update is required in Kazakhstan.

Submission deadline upon request by tax authorities

In general, supporting information and documents must be submitted within 90 days upon request from the authorities. However, additional supporting documents for purposes of monitoring may be requested and must be submitted within 30 calendar days after receipt of the request.

Advance Pricing Agreements


Rules for transfer pricing in Kazakhstan officially provide for an option to obtain an Advance Pricing Agreement (APA). However, in practice is seems impossible to obtain an APA; up until today no know APA has been concluded.


Rules for transfer pricing in Kazakhstan prescribe that the term for signing an APA may not extend a three year period.


Rules for transfer pricing in Kazakhstan provide for several penalties if a taxpayer fails to comply with the transfer pricing documentation requirements:

  • A penalty of up to 50 percent of additionally accrued tax, and interest on underpaid tax of 2.5 times the refinancing rate established by the National Bank for each day the tax obligation remains overdue will be imposed
  • The taxpayer’s failure to provide the tax authorities with reporting to monitor transactions is subject to a fine up to 70 MCI (1 MCI=USD 12)
  • Failure to submit documents within the period prescribed by the authorized government body, or refusal to provide documents is subject to a fine up to 350 MCI | the global transfer pricing reference guide