KMG EP website

TAX RISKS

The tax system of the Republic of Kazakhstan is characterized by small volumes of law enforcement practice in respect of the recently adopted regulations. It is also characterized by the risk of additional taxation, fines and penalties based on improper interpretation of the legislation. These factors complicate the planning of the tax costs of the Company. The Company’s Management develops actions to minimize the risk, based on participation in the work of improving the quality of both the Tax Code, and amendments thereto. In addition, the Company continues to defend its interests in the courts.

Change in customs regulations and duties

Considering that the Company carries out foreign trade activities, changes in customs regulations, volatility of ICD and lack of a transparent formula for calculating the ICD, could adversely affect the Company’s financial results.

However, the Company carries out continuous monitoring of changes in the current legislation of the Republic of Kazakhstan and takes them into account in its activities. This allows it to minimize the risks associated with these changes.