Tax & Law Services
- About Our Global Tax Services
- Country Tax Advisory
- Cross Border Tax Advisory
- Global Trade
- Global Compliance and Reporting
- People Advisory Services
- Private Client Services
- Tax Accounting
- Tax Performance Advisory
- Tax Policy and Controversy
- Transaction Tax
- Transfer Pricing and Operating Model Effectiveness
- VAT, GST and Other Sales Taxes
Tax accounting and compliance
Tax accounting involves record-keeping in compliance with the requirements of the effective legislation of the Republic of Kazakhstan in order to summarize and systematize data on taxable items and (or) items related to taxation, as well as to assess taxes and other mandatory budget payments and prepare tax reports.
Tax accounting and submission of tax reports are essential and time-consuming processes requiring high professional skills of tax experts, chief accountants and other responsible executives.
To reduce risks and increase corporate transparency, accounting data should, above all, be complete, accurate and provided in due time.
Click on the links below to learn about EY’s diverse tax accounting and compliance outsourcing options.
1. Agree on a structured process for our communication and deadlines for deliverables (information and documents), and define EY's and the client’s responsibilities
2. Draft tax accounting policies
3. Customize tax accounting software (1С), including:
- Setting up the system in accordance with the client's accounting needs
- Entering opening balances for accounts (if applicable)
- Adjusting analytical accounting
- Registering with the electronic reporting system
- Designing corporate reporting templates
- Other procedures required to begin operations and support the provision of services
- Preparation and submission of tax reports
- Corporate income tax (CIT) (Form 100.00)
- CIT prepayments (Forms 101.01 and 101.02)
- Withholding CIT on income of non-resident legal entities without a permanent establishment (Form 101.04)
- Value-added tax (VAT) (Form 300.00)
- VAT on exports and imports of goods, works, services in the Eurasian Economic Union
- Property tax
- Transport tax
- Environmental pollution charge
- Drafting tax registers
- Preparation of financial statements in accordance with International Financial Reporting Standards
- Preparation of financial statements in accordance with the Group’s/Company’s corporate template
- Preparation of monthly reconciliation acts to reconcile data from corporate accounting systems (SAP, Oracle, JDE, etc., and 1C)
- Assistance during in-house and on-site tax audits, internal and external tax audits (collecting, copying and scanning documents, and preparing comments and estimates at the request of authorized persons)
How does it work?
Accounting services are provided using the 1C accounting system. This is a licensed program on EY's protected Kazakhstan-based server. The client's staff may be granted remote access to the system to view files, export registers, reports or other documents.
The services are generally provided based on copies of primary documents and information supplied by the client. The client's authorized officer is in charge of collecting and scanning documents, and uploading them into 1C: Document Management. The system is a tool for storing and exchanging documents between the client and EY in the agreed manner and form. The originals of the primary documents are stored at the client's premises. This document management approach is convenient for the client, as it:
- Provides quick and easy shared access to the client's documents, helps prevent email overload with big files and keep track of documents within the huge mass of communications.
- Allows the client to keep storage of all the corporate documentation under direct control. The safe storage of documentation is the client’s primary responsibility. When a chief executive steps down, corporate accounting records must be handed over to the successor.
- Provides quick and easy access to original documents both to auditors or the authorities during audits.
- Ensures the timely transfer of control over accounting processes upon the completion of services / expiry of our engagement agreement. There is no need to provide a detailed description of the original documents that are being handed over. All documentation is stored at the client’s premises.
CIT accounting and related financial statement disclosures
With today’s globalized accounting systems and tougher transparency requirements, tax directors and chief financial officers face challenges in recording CIT as required by IFRS/US GAAP financial reporting standards. CIT accounting has been a long-lasting issue frequently giving rise to errors in financial statements. Beyond that, quality of accounting has been commonly on the list of significant deficiencies in internal control.
Errors corrected in financial statements
Identified significant deficiencies in internal control
*The data for 2010-13 are provided by Audit analytics, for 2014-15 – by EY Analysis; the 2015 data cover the period up to 18 March 2015.
CIT accounting requires deep knowledge of tax legislation and understanding of the structure and rules of corporate finance accounting – a combination that is often functionally difficult to achieve internally without the help of a professional advisor.
EY can help you to successfully deal with accounting issues and record current and deferred tax assets and liabilities.