Joint Order of the Minister of Finance of the Republic of Kazakhstan No. 1256 and Resolution of the Board of the National Bank of the Republic of Kazakhstan No. 228 on Amending the Rules for Submitting Conclusions on the Compliance of Insurance Reserves

City of Nur-Sultan, City of Almaty

JOINT ORDER AND RESOLUTION

On Amending the Joint Order of the Minister of Finance of the Republic of Kazakhstan dated February 6, 2018 No. 130 and the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 26, 2018 No. 23 "On Approving the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity"

The First Deputy Prime Minister of the Republic of Kazakhstan – Minister of Finance of the Republic of Kazakhstan ORDERS and the Board of the National Bank of the Republic of Kazakhstan RESOLVES:

1. To make the following amendment to the Joint Order of the Minister of Finance of the Republic of Kazakhstan dated February 6, 2018 No. 130 and the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 26, 2018 No. 23 "On Approving the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity" (registered in the Registry of State Registration of Normative Legal Acts under No. 16569, published on March 26, 2018 in the Reference Control Bank of Normative Legal Acts of the Republic of Kazakhstan):

The Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity, approved by the aforementioned joint order and resolution, are to be rewritten in a new edition according to the Appendix to these joint order and resolution.

2. The Committee of State Revenues of the Ministry of Finance of the Republic of Kazakhstan is to ensure, in the manner established by legislation:

1) state registration of these joint order and resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) publication of these joint order and resolution on the Internet resource of the Ministry of Finance of the Republic of Kazakhstan;

3) within ten working days after the state registration of these joint order and resolution in the Ministry of Justice of the Republic of Kazakhstan, submission to the Legal Service Department of the Ministry of Finance of the Republic of Kazakhstan of information on the implementation of the measures provided for in sub-items 1) and 2) of this item.

3. These joint order and resolution enter into force on January 1, 2020, and are subject to official publication.

First Deputy Prime Minister of the Republic of Kazakhstan – Minister of Finance of the Republic of Kazakhstan		Chairman of the Board of the National Bank of the Republic of Kazakhstan
______ A. Smailov		______ E. Dosayev

Appendix

to the joint order

of the First Deputy Prime Minister

of the Republic of Kazakhstan –

Minister of Finance

of the Republic of Kazakhstan

dated "13" November 2019 No. 1256

and the Resolution of the Board

of the National Bank

of the Republic of Kazakhstan

dated "29" November 2019 No. 228

Approved

by the joint order of the Minister

of Finance of the Republic of Kazakhstan

dated "6" February 2018 No. 130

and the Resolution of the Board

of the National Bank

of the Republic of Kazakhstan

dated "26" February 2018 No. 23

Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

Chapter 1. General Provisions

1. These Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity (hereinafter – the Rules) are developed in accordance with paragraph 8 of Article 22 and paragraph 9 of Article 26 of the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory Payments to the Budget" (Tax Code) and define the procedure for submitting a conclusion on the compliance of the size of insurance reserves for unearned premiums, incurred but not reported losses, reported but unsettled losses, and incurred but not yet reported losses with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity.

2. Concepts used within these Rules are applied in accordance with the Law of the Republic of Kazakhstan dated December 18, 2000 "On Insurance Activity".

Chapter 2. Procedure for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

3. State revenue bodies, during tax audits, interact with the authorized body for regulation, control, and supervision of the financial market and financial organizations (hereinafter – the authorized body) to obtain, regarding the audited taxpayer, a conclusion on the compliance of the size of insurance reserves for unearned premiums, incurred but not reported losses, reported but unsettled losses, and incurred but not yet reported losses with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, for determining amounts for corporate income tax (hereinafter – CIT) in accordance with paragraph 5 of Article 250 of the Tax Code.

4. The request from state revenue bodies sent to the authorized body contains the following information:

1) details of the insurance (reinsurance) organization (name, business identification number (hereinafter – BIN));

2) the audited tax period;

3) amounts of insurance reserves for unearned premiums, incurred but not reported losses, reported but unsettled losses, and incurred but not yet reported losses at the end of the reporting tax period and at the end of the reporting tax period of the previous year, reflected by the insurance (reinsurance) organization in primary accounting documents and CIT declarations.

5. The authorized body, upon request from state revenue bodies, within 15 (fifteen) calendar days from the date of receipt of such request in accordance with the Tax Code, submits:

a conclusion on the compliance of the size of insurance reserves for unearned premiums with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 1 to the Rules;

a conclusion on the compliance of the size of insurance reserves for incurred but not reported losses with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 2 to the Rules;

a conclusion on the compliance of the size of insurance reserves for reported but unsettled losses with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 3 to the Rules;

a conclusion on the compliance of the size of insurance reserves for incurred but not yet reported losses with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 4 to the Rules.

6. The conclusion of the authorized body contains information on the amounts of the sizes of insurance reserves for unearned premiums, incurred but not reported losses, reported but unsettled losses, and incurred but not yet reported losses, with reflection of the reasons for compliance (non-compliance) of the amounts of insurance reserves, the results of which are applied during tax audits by state revenue bodies.

The conclusion of the authorized body is sent to the state revenue bodies with a cover letter signed by the deputy head.

7. Information and data submitted by the authorized body upon request from state revenue bodies in accordance with the Rules are not subject to disclosure by state revenue bodies to any third party. Officials and employees of state revenue bodies use information and data obtained in accordance with the Rules exclusively for the purpose of conducting tax audits.

Chapter 3. Explanation on Filling out the Conclusion

8. The conclusion on the compliance of the size of insurance reserves for unearned premiums (hereinafter – UPR) with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 1 to the Rules, is filled out as follows:

1) in column 1, the serial number is indicated;

2) in column 2, the BIN of the insurance (reinsurance) organization is indicated;

3) in column 3, the name of the insurance (reinsurance) organization is indicated;

4) in column 4, the audited tax period is indicated by year (CIT tax period – calendar year from January 1 to December 31);

5) in column 5, the amount of UPR at the end of the reporting period according to the data of the audited taxpayer is indicated;

6) in column 6, the amount of UPR at the end of the reporting period of the previous year according to the data of the audited taxpayer is indicated;

7) in column 7, the difference amount for UPR for the tax period according to the taxpayer's data, allocated to CIT deductions, is indicated;

8) in column 8, the amount of UPR at the end of the reporting period according to the data of the authorized body is indicated;

9) in column 9, the amount of UPR at the end of the reporting period of the previous year according to the data of the authorized body is indicated;

10) in column 10, the difference amount for UPR for the tax period according to the data of the authorized body is indicated;

11) in column 11, the conclusion of the authorized body on the amounts of UPR is indicated, with reasons specified in case of non-compliance with the taxpayer's data.

9. The conclusion on the compliance of the size of insurance reserves for incurred but not reported losses (hereinafter – INRL) with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 2 to the Rules, is filled out as follows:

1) in column 1, the serial number is indicated;

2) in column 2, the BIN of the insurance (reinsurance) organization is indicated;

3) in column 3, the name of the insurance (reinsurance) organization is indicated;

4) in column 4, the audited tax period is indicated by year (CIT tax period – calendar year from January 1 to December 31);

5) in column 5, the amount of INRL at the end of the reporting period according to the data of the audited taxpayer is indicated;

6) in column 6, the amount of INRL at the end of the reporting period of the previous year according to the data of the audited taxpayer is indicated;

7) in column 7, the difference amount for INRL for the tax period according to the taxpayer's data, allocated to CIT deductions, is indicated;

8) in column 8, the amount of INRL at the end of the reporting period according to the data of the authorized body is indicated;

9) in column 9, the amount of INRL at the end of the reporting period of the previous year according to the data of the authorized body is indicated;

10) in column 10, the difference amount for INRL for the tax period according to the data of the authorized body is indicated;

11) in column 11, the conclusion of the authorized body on the amounts of INRL is indicated, with reasons specified in case of non-compliance with the taxpayer's data.

10. The conclusion on the compliance of the size of insurance reserves for reported but unsettled losses (hereinafter – RBUL) with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 3 to the Rules, is filled out as follows:

1) in column 1, the serial number is indicated;

2) in column 2, the BIN of the insurance (reinsurance) organization is indicated;

3) in column 3, the name of the insurance (reinsurance) organization is indicated;

4) in column 4, the audited tax period is indicated by year (CIT tax period – calendar year from January 1 to December 31);

5) in column 5, the amount of RBUL at the end of the reporting period according to the data of the audited taxpayer is indicated;

6) in column 6, the amount of RBUL at the end of the reporting period of the previous year according to the data of the audited taxpayer is indicated;

7) in column 7, the difference amount for RBUL for the tax period according to the taxpayer's data, allocated to CIT deductions, is indicated;

8) in column 8, the amount of RBUL at the end of the reporting period according to the data of the authorized body is indicated;

9) in column 9, the amount of RBUL at the end of the reporting period of the previous year according to the data of the authorized body is indicated;

10) in column 10, the difference amount for RBUL for the tax period according to the data of the authorized body is indicated;

11) in column 11, the conclusion of the authorized body on the amounts of RBUL is indicated, with reasons specified in case of non-compliance with the taxpayer's data.

11. The conclusion on the compliance of the size of insurance reserves for incurred but not yet reported losses (hereinafter – IBNR) with the requirements established by the legislation of the Republic of Kazakhstan on insurance and insurance activity, in the form according to Appendix 4 to the Rules, is filled out as follows:

1) in column 1, the serial number is indicated;

2) in column 2, the BIN of the insurance (reinsurance) organization is indicated;

3) in column 3, the name of the insurance (reinsurance) organization is indicated;

4) in column 4, the audited tax period is indicated by year (CIT tax period – calendar year from January 1 to December 31);

5) in column 5, the amount of IBNR at the end of the reporting period according to the data of the audited taxpayer is indicated;

6) in column 6, the amount of IBNR at the end of the reporting period of the previous year according to the data of the audited taxpayer is indicated;

7) in column 7, the difference amount for IBNR for the tax period according to the taxpayer's data, allocated to CIT deductions, is indicated;

8) in column 8, the amount of IBNR at the end of the reporting period according to the data of the authorized body is indicated;

9) in column 9, the amount of IBNR at the end of the reporting period of the previous year according to the data of the authorized body is indicated;

10) in column 10, the difference amount for IBNR for the tax period according to the data of the authorized body is indicated;

11) in column 11, the conclusion of the authorized body on the amounts of IBNR is indicated, with reasons specified in case of non-compliance with the taxpayer's data.

Appendix 1

To the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

form

Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

No.	Details of the Insurance Organization		Period	UPR
BIN	Name	At the end of the reporting tax period according to taxpayer data (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to taxpayer data (as of December 31, ___ year)	Difference amount for UPR for the tax period according to taxpayer data (column 5 – column 6)
1	2	3	4	5	6	7

continuation of the table

UPR
At the end of the reporting tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	Difference amount for UPR for the tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (column 8 – column 9)	Conclusion of the authorized body for regulation, control, and supervision of the financial market and financial organizations on the compliance of taxpayer and authorized body data (in case of non-compliance, indication of the reason for non-compliance)
8	9	10	11

---

(last name, first name, patronymic (if any), signature of the person responsible for preparing the conclusion)

Note:

BIN – business identification number;

UPR – reserves for unearned premiums.

Appendix 2

To the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

form

Conclusion on the Compliance of the Size of Insurance Reserves for Incurred but Not Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

No.	Details of the Insurance Organization		Period	INRL
BIN	Name	At the end of the reporting tax period according to taxpayer data (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to taxpayer data (as of December 31, ___ year)	Difference amount for INRL for the tax period according to taxpayer data (column 5 – column 6)
1	2	3	4	5	6	7

continuation of the table

INRL
At the end of the reporting tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	Difference amount for INRL for the tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (column 8 – column 9)	Conclusion of the authorized body for regulation, control, and supervision of the financial market and financial organizations on the compliance of taxpayer and authorized body data (in case of non-compliance, indication of the reason for non-compliance)
8	9	10	11

---

(last name, first name, patronymic (if any), signature of the person responsible for preparing the conclusion)

Note:

BIN – business identification number;

INRL – reserves for incurred but not reported losses.

Appendix 3

To the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

form

Conclusion on the Compliance of the Size of Insurance Reserves for Reported but Unsettled Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

No.	Details of the Insurance Organization		Period	RBUL
BIN	Name	At the end of the reporting tax period according to taxpayer data (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to taxpayer data (as of December 31, ___ year)	Difference amount for RBUL for the tax period according to taxpayer data (column 5 – column 6)
1	2	3	4	5	6	7

continuation of the table

RBUL
At the end of the reporting tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	Difference amount for RBUL for the tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (column 8 – column 9)	Conclusion of the authorized body for regulation, control, and supervision of the financial market and financial organizations on the compliance of taxpayer and authorized body data (in case of non-compliance, indication of the reason for non-compliance)
8	9	10	11

---

(last name, first name, patronymic (if any), signature of the person responsible for preparing the conclusion)

Note:

BIN – business identification number;

RBUL – reserves for reported but unsettled losses.

Appendix 4

To the Rules for Submitting a Conclusion on the Compliance of the Size of Insurance Reserves for Unearned Premiums, Incurred but Not Reported Losses, Reported but Unsettled Losses, and Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

form

Conclusion on the Compliance of the Size of Insurance Reserves for Incurred but Not Yet Reported Losses with the Requirements Established by the Legislation of the Republic of Kazakhstan on Insurance and Insurance Activity

No.	Details of the Insurance Organization		Period	IBNR
BIN	Name	At the end of the reporting tax period according to taxpayer data (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to taxpayer data (as of December 31, ___ year)	Difference amount for IBNR for the tax period according to taxpayer data (column 5 – column 6)
1	2	3	4	5	6	7

continuation of the table

IBNR
At the end of the reporting tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	At the end of the reporting tax period of the previous year according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (as of December 31, ___ year)	Difference amount for IBNR for the tax period according to data of the authorized body for regulation, control, and supervision of the financial market and financial organizations (column 8 – column 9)	Conclusion of the authorized body for regulation, control, and supervision of the financial market and financial organizations on the compliance of taxpayer and authorized body data (in case of non-compliance, indication of the reason for non-compliance)
8	9	10	11

---

(last name, first name, patronymic (if any), signature of the person responsible for preparing the conclusion)

(surname, first name, patronymic (if any), signature of the person responsible for preparing the conclusion)

Note:

BIN – business identification number;

RPNu – reserves for incurred but not reported losses.