The Department of State Revenue for the Mangystau region informs that the Ministry of Finance of the Republic of Kazakhstan has developed a draft order "On certain issues of horizontal monitoring" in order to implement the provisions of the new Tax Code of the Republic of Kazakhstan (paragraph 2 of Chapter 14).

What is horizontal monitoring?

Horizontal monitoring is a new form of interaction between tax authorities and taxpayers based on the principles of transparency, trust and partnership. The main goal is to minimize tax risks and simplify tax control procedures without interfering in the business activities of companies.

The main provisions of the draft order:

- the requirements for the data showcase, the internal control system and the disclosure of financial statements have been defined;

- the procedure for submitting applications, concluding and terminating agreements on horizontal monitoring has been established;

- the monitoring process itself is regulated.

How will the monitoring take place?

- Participation in the system is voluntary. Companies that meet the criteria may enter into a horizontal monitoring agreement with an authorized body.

- The interaction is carried out in electronic format through a "data showcase", an information system that provides access to tax reports, accounting registers and primary documents.

- This approach will allow us to quickly analyze the activities of taxpayers, simplify procedures and significantly shorten the time of tax control.

Business Benefits:

- reducing the administrative burden;

- predictability and transparency of tax administration;

- reducing the number of traditional checks;

- strengthening partnerships between business and government.

Horizontal monitoring is a step towards an open dialogue and partnership between business and government.

(unofficial translation)

Source : https://www.gov.kz/memleket/entities/kgd-mangistau/press/news/details/1072075?lang=kk