Tax and Accounting Policies: A Mandatory Requirement for Every Company

According to the legislation of the Republic of Kazakhstan, having tax and accounting policies is mandatory for every company.

Specifically, paragraph 1 of Article 7 of the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” and paragraph 2 of Article 190 of the Tax Code of the Republic of Kazakhstan stipulate that an organization must have accounting and tax policies approved by its management.

Definition of Policies:

• Accounting policy refers to the specific principles, bases, rules, and practices applied by an organization for maintaining accounting records and preparing financial statements. It is developed in accordance with the legislation of the Republic of Kazakhstan, international standards, and based on the specific features of the company’s activities.

• Tax accounting policy reflects the methods and approaches used by the company to account for transactions for tax purposes.

Company Obligations:

• Develop, approve, and formalize the accounting policy;

• Ensure proper accounting, including having internal documents that regulate the procedure for recording all company transactions.

Responsibility:

The absence of tax and accounting policies is considered an administrative violation. According to Article 276 of the Code of the Republic of Kazakhstan on Administrative Offenses, this may entail penalties.

Benefits for Business:

Beyond legal compliance, having accounting and tax policies helps the company to formalize accounting rules, minimize disputes during tax inspections, and document accounting standards and procedures officially, which enhances transparency and business protection.

BPO Kazakhstan provides services for developing accounting and tax policies tailored to the specific features of each client’s business.