Tax Code of the Republic of Kazakhstan
(Code of the Republic of Kazakhstan of July 18, 2025 №. 214-VIII)
GENERAL PART SECTION 1. GENERAL PROVISIONS
Chapter 1. MAIN PROVISIONS
Article 1. Sphere regulated by this Code
This Code establishes the fundamental principles of taxation, regulates the power relations in the establishment, introduction, amendment, cancellation, calculation and payment of taxes and other mandatory payments to the budget, as well as public relations pertaining to the fulfillment of tax obligations.
Paragraph 1. Basic concepts used in this Code
Article 2. General provisions on basic concepts used for taxation purposes
In this Code, for taxation purposes, basic concepts are used in the meanings defined in this paragraph.
Other special concepts and terms of the tax legislation of the Republic of Kazakhstan are used in the meanings defined in the corresponding articles of this Code.
For the purposes of this Code, the provisions provided for second-tier banks, insurance (reinsurance) organizations, insurance brokers, shall apply to branches of non-resident banks of the Republic of Kazakhstan, branches of non-resident insurance (reinsurance) organizations of the Republic of Kazakhstan, branches of non-resident insurance brokers of the Republic of Kazakhstan, opened in the territory of the Republic of Kazakhstan and operating on the basis of a license from the authorized body for regulation, control and supervision of the financial market and financial organizations.
For the purposes of this Code, an account opened with the central authorized budget execution body or its territorial divisions shall be equated to a bank account, and the central authorized budget execution body and its territorial divisions shall be equated to organizations performing certain types of banking operations.
The concepts of civil and other branches of the legislation of the Republic of Kazakhstan used in this Code shall be applied in the meaning in which they are used in these legislation branches of the Republic of Kazakhstan, unless otherwise provided by this Code.
The name “Code of the Republic of Kazakhstan “On taxes and other obligatory payments to the budget” (Tax Code)”, used in regulatory legal acts, shall be identical to the name “Tax Code of the Republic of Kazakhstan”.
Article 3. Concepts related to tax relations entities
Concepts related to tax relations entities:
1) organization body of the Astana International Financial Centre - a legal entity registered in accordance with the current law of the Astana International Financial Centre (hereinafter referred to as the AIFC), whose 50 or more percent of the shares (voting shares) are directly or indirectly held by the AIFC body.
Indirect ownership shall mean ownership of the AIFC body through another legal entity that is directly owned by the AIFC body;
2) banking organization - a second-tier bank, the Development Bank of Kazakhstan and an organization performing certain types of banking operations established in the Republic of Kazakhstan;
3) non-resident legal entity - an organization established under the legislation of a foreign state, with the exception of an organization, whose place of effective management (location of the actual management body) is in the Republic of Kazakhstan.
A non-resident legal entity also means a company, partnership, organization or other corporate entity created under the laws of a foreign state, which are considered as independent legal entities regardless of whether they have the status of a legal entity of the foreign state where they are created;
4) an organization vested with functions for the sale of property restricted in disposal (pledged) - a legal entity assigned by the authorized body in the sale of property restricted in disposal and (or) pledged in accordance with this Code of the taxpayer (tax agent) and (or) a third party;
5) a legal entity that was previously a bank - a legal entity that was previously a bank, which was restructured by a court ruling, whose more than 90 percent of the voting shares as of December 31, 2013 belonged to the national management holding;
6) a private practice owner - a private notary, private bailiff, lawyer, professional mediator;
7) an individual - a citizen of the Republic of Kazakhstan, a foreign national, a candidate or a stateless person;
8) an employee:
an individual who is in an employment relationship with an employer and directly performs work under an employment agreement (contract);
civil servant;
member of the board of directors or other management body of the taxpayer that is not the highest management body, with the exception of civil servants;
foreign national or stateless person assigned for work under an out staffing contract by a non-resident whose activity does not constitute a permanent establishment, to a resident or other non-resident operating in the Republic of Kazakhstan through a permanent establishment;
9) legal entity - a resident legal entity, a non-resident legal entity;
10) a structural subdivision of a legal entity - a branch, a representative office;
11) a foreign company operating through an Internet platform in the territory of the Republic of Kazakhstan - a non-resident legal entity selling goods and (or) providing services through an Internet platform in the territory of the Republic of Kazakhstan;
12) a resident legal entity - an organization created under the legislation of:
the Republic of Kazakhstan;
a foreign state, whose place of effective management (location of the actual management body) is in the Republic of Kazakhstan;
13) tax agent - an individual, sole proprietor, private practitioner, legal entity, structural subdivision of a legal entity, an Internet platform operator, which in the cases and manner established by this Code are recognized as a tax agent;
14) taxpayer - an individual, structural subdivision of a legal entity that is a payer of taxes and other mandatory payments to the budget;
15) taxpayer subject to tax monitoring - a participant in horizontal monitoring, a participant in monitoring of large taxpayers;
16) person - an individual, a legal entity;
17) the registering authority — authorized state bodies and the State Corporation Government for Citizens (hereinafter referred to as the State Corporation) that perform state registration (re-registration) of legal entities and record registration (re-registration) of their branches and representative offices and (or) taxable items and taxation-related items, including:
real estate titles;
pledge of movable property and mortgage of a vessel;
radio-electronic means and high-frequency devices;
space objects and rights thereto;
vehicles;
medicines and medical devices;
rights to works and related rights objects, license agreements for the use of works and related rights objects;
also, registration of mass media;
18) authorized state bodies - state bodies of the Republic of Kazakhstan, with the exception of tax authorities and local executive bodies, exercising management in a separate sector or public administration area, including calculation and (or) collection of other mandatory payments to the budget;
19) the authorized body - a state body exercising management in ensuring the receipt of taxes and other mandatory payments to the budget;
20) participant in monitoring of large taxpayers - a taxpayer on the list of participants in monitoring of large taxpayers, approved by the authorized body.
Article 4. Concepts related to taxes and other payments
Concepts related to taxes and other payments:
1) social payments - mandatory pension contributions, mandatory occupational pension contributions, mandatory employer pension contributions, social deductions paid in accordance with the Social Code of the Republic of Kazakhstan, deductions and contributions for mandatory social health insurance paid in accordance with the Law of the Republic of Kazakhstan On Mandatory Social Health Insurance;
2) other mandatory payments to the budget (hereinafter referred to as payments to the budget) - mandatory deductions of money to the budget in the form of fees, charges, duties, with the exception of customs payments, made in the amounts and cases established by this Code;
3) tax - a mandatory monetary payment to the budget legislatively established unilaterally by the state, with the exception of cases provided for by this Code, made in a certain amount, irrevocable and gratuitous in nature.
Article 5: Concepts related to tax arrears
Concepts related to tax arrears:
1) arrears - calculated and charged amounts of taxes and payments to the budget not paid on time, as well as advance and current payments on them, with the exception of amounts reflected in the notification of the tax audit results, during the appeal period in accordance with the procedure established by the legislation of the Republic of Kazakhstan in the contested part;
2) penalties - monetary amounts calculated as a multiple of the base rate of the National Bank of the Republic of Kazakhstan (hereinafter referred to as the National Bank), effective for each day of delay, and charged on:
the amount of tax and payment to the budget not paid by the taxpayer (tax agent) on time, including advance and (or) current payment, starting from the day following the due date of the tax obligation to pay, including the day of payment to the budget;
the amount of paid and (or) overpaid tax, payment to the budget and (or) the amount of excess value added tax on which the tax authority has violated the deadline for the offset and (or) refund under the taxpayer's tax application, starting from the day following the day of the end of the deadline for the offset and (or) refund, including the day of refund.
The multiplicity of the National Bank's base rate under this subparagraph shall be:
0.65 - for a horizontal monitoring participant;
1.25 - for other taxpayers (tax agents).
3) tax debt - the amount of arrears, unpaid amounts of penalties and fines.
The tax debt shall not include the amount of penalties reflected in the notification of the tax audit results, as well as the amount of fines reflected in the decision on imposing an administrative penalty, during the appeal period in the manner determined by the legislation of the Republic of Kazakhstan, in the contested part;
4) maximum amount of tax debt- the amount of tax arrears established by the authorized body, in the excess of which the tax authority applies the method of securing the tax liability and (or) the measure of enforced tax arrears collection provided for in Articles 86 and 87 and Articles 185, 186, 187, 188 and 189 of this Code to a taxpayer - a legal entity, a structural subdivision of a legal entity, a non-resident operating in the Republic of Kazakhstan through a permanent establishment, a sole proprietor, a private practitioner.
The maximum amount of tax debt is determined in the amount of at least 20 times the monthly calculation index effective as of January 1 of the corresponding financial year, separately for each method of securing a tax liability and (or) each measure of compulsory collection of tax debts.
Article 6: Concepts related to the procedure of calculation, payment of taxes and payments to the budget
Concepts related to the procedure of calculation, payment of taxes and payments to the budget:
1) special tax regime - the procedure for calculation, payment of certain taxes and payments to the budget, as well as submission of tax reporting on them for certain categories of taxpayers, different from the generally established taxation procedure, provided that the taxpayer complies with the conditions established by this Code;
2) the generally established taxation procedure - the basic procedure of calculation, payment of taxes and payments to the budget, established by the Special Part of this Code.
Article 7. Royalty
Unless otherwise provided by paragraph 2 of this article, royalties are payments for:
1) the right to use subsoil in the process of extraction of minerals and processing of technogenic formations;
2) the use of or the right to use copyrights, drawings or models;
3) the use of or the right to use patents, trademarks or other similar rights;
4) the use of or the right to use software, including services for updating the version of such software, excluding versions intended to correct errors, defects, and make modifications to such software that are not related to the development of software;
5) use of know-how.
"Know-how" is confidential information of a technical, technological, organizational or other nature that has commercial value and is used in professional or business activities;
6) use of or right to use films, videos, sound recordings or other recording media;
7) use of or right to use commercial, research and (or) industrial equipment, including sea vessels or aircraft (except for vessels leased under demise-charter agreements).
Payment for full realization of proprietary (exclusive) rights to an intellectual property item shall not be recognized as royalty.
Article 8. Concepts related to certain types of services and transactions
Concepts related to certain types of services and transactions:
1) information processing services - services for collecting and summarizing information, systematizing information arrays (data) and (or) providing the user with the information processing results, including rating services.
In this case, rating services are understood to mean analysis and assessment services that display a numerical or ordinal indicator of the importance or significance of a certain object or phenomenon;
2) design services - services for designing artistic forms, the appearance of products, building facades, interiors; styling design;
3) engineering services - engineering and consulting services, research, design and engineering, calculation and analytical work, preparation of feasibility studies for projects, development of recommendations in the field of organizing production and management, sales of products;
4) online medium - an online store and (or) trading platform intended for the sale of goods, provision of services, offers to provide services through the public telecommunications network and the Internet, including intermediary services to enable the sale and provision of services, order placement and payment to other persons by providing access to the online store and (or) trading platform;
5) consulting services - services on provision of explanations, recommendations, advice and other forms of consultations, including identification and (or) assessment of problems and (or) opportunities of a person in order to address managerial, economic, financial, investment matters, including issues of strategic planning, organization and doing business, personnel management;
6) marketing service - any paid service related to:
research, analysis, planning, forecasting in the sphere of production and (or) circulation of goods, works, services in order to determine measures to create better economic conditions;
a set of measures and solutions aimed at promoting goods, works, services or a brand, attracting a target audience, increasing sales, achieving established indicators and (or) sales goals;
7) sales:
shipment and (or) transfer of goods or other property, performance of works, provision of services for the purpose of sale, exchange, gratuitous transfer;
transfer of property under a leasing agreement;
transfer of pledged goods to the pledgee in the event of default by the debtor of the obligation secured by the pledge;
8) e- trade in commodities -business activity on sale of commodities to individuals, carried out via an Internet platform;
9) import of goods - importation of goods:
to the customs territory of the Eurasian Economic Union (hereinafter referred to as the EAEU), carried out in accordance with the customs legislation of the EAEU and (or) the customs legislation of the Republic of Kazakhstan;
to the territory of the Republic of Kazakhstan from the territory of another state - a member of the EAEU;
10) electronic services- services provided via an Internet platform.
Article 9. Concepts related to gratuitous conveyance of property
Concepts related to gratuitous conveyance of property:
1) a grant - property provided on a gratuitous basis to achieve specific goals (objectives):
by states, governments of states - the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
by international and state organizations, foreign and Kazakhstan non-governmental public organizations and foundations whose activities are charitable and (or) international and do not contradict the Constitution of the Republic of Kazakhstan, included in the list established by the Government of the Republic of Kazakhstan based on the conclusions of state bodies - the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
by foreigners and stateless persons - the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;
2) humanitarian aid - property provided on a gratuitous basis to the Republic of Kazakhstan in the form of food, consumer goods, machinery, equipment, medical drugs and devices, other property sent from foreign countries and international organizations to improve living conditions and everyday life of the population, as well as prevention and elimination of social, natural and man-made emergencies, distributed by the Government of the Republic of Kazakhstan through authorized organizations;
3) sponsorship - property provided on a gratuitous basis for the purpose of disseminating information about the person providing this assistance:
to individuals in the form of financial (except social) support for participation in competitions, contests, exhibitions, shows and development of creative, scientific, scientific-technological, inventive activity, improvement of education and sportsmanship;
to non-profit organizations for the implementation of their statutory objectives;
4) social support of an individual - gratuitous transfer by a tax agent for a year of property within 647-fold amount of the monthly calculation indicator, effective as of the corresponding fiscal year start, to an individual, referred to a separate category of such individuals, entitled to social protection under the legislation of the Republic of Kazakhstan.
The list of separate categories of individuals, provided for by part one of this subparagraph, shall be approved by the central authorized state planning body in coordination with the authorized body and the central executive body in the population social welfare;
5) charitable assistance - property provided on a gratuitous basis:
in the form of sponsorship;
in the form of social support to an individual;
to an individual affected by an emergency situation;
to a non-profit organization in order to support its statutory activities;
to an organization operating in the social sphere;
to a specialized organization of persons with disabilities in accordance with the Social Code of the Republic of Kazakhstan.
Article 10. Concepts related to subsoil use
Concepts related to subsoil use:
1) a subsoil use contract - an agreement between a competent body or an authorized body for the study of subsoil or a local executive body of an oblast, the city of republican status, the capital within the competence established by the legislation of the Republic of Kazakhstan on subsoil and subsoil use, and an individual and (or) legal entity for the exploration, production, combined exploration and production of minerals or the construction and (or) operation of underground structures unrelated to exploration and (or) production, or for state geological exploration of subsoil.
Subsoil use contract also includes subsoil use licenses and other types of granting of subsoil and (or) water use rights under the legislation of the Republic of Kazakhstan.
The terms “exploration contract”, “production contract”, “combined exploration and production contract” and “exploration or production license” used in this Code are identical to the term “subsoil use contract”, the term “exploration and production contract” is identical to the term “combined exploration and production contract”;
2) subsoil users - individuals or legal entities entitled to conduct subsoil use operations, including oil operations, and (or) water use on the territory of the Republic of Kazakhstan under the laws of the Republic of Kazakhstan.
In this case:
subsoil use operations are recognized as works related to the geological study of the subsoil, exploration and (or) extraction of minerals, including those related to exploration and extraction of groundwater, therapeutic mud, exploration of subsoil for wastewater discharge, as well as construction and (or) operation of underground structures unrelated to exploration and (or) extraction;
oil operations are recognized as works on exploration, production of hydrocarbons, construction and (or) operation of necessary technological and production facilities;
3) non-contractual activities - activities of a subsoil user not expressly provided for by the provisions of a subsoil use contract, any other activities;
4) contractual activities - activities of a subsoil user carried out under a subsoil use contract;
5) hydrocarbon preparation - a set of technological processes for the preparation of hydrocarbons, including collection, delivery for preparation, delivery of well fluid to metering units, degassing, dehydration, desalination, stabilization, demercaptanization;
6) recipient on behalf of the state - a legal entity determined by the Government of the Republic of Kazakhstan, acting on behalf of the state as a recipient of minerals transferred in kind by a subsoil user in fulfillment of a tax obligation under the tax legislation of the Republic of Kazakhstan and (or) production sharing agreements (contracts), a subsoil use contract approved by the President of the Republic of Kazakhstan, provided for in Article 755 of this Code;
7) mineral stock - a part of the subsoil (rock, ore raw materials, etc.) extracted to the surface containing a mineral (minerals), excluding dilution;
8) primary processing (beneficiation) of mineral raw materials - a type of mining activity that:
includes on-site collection, crushing or grinding, classification (sorting), briquetting, agglomeration and enrichment by physical and chemical methods (without qualitatively changing the mineral forms of minerals, their aggregate-phase state, crystal-chemical structure);
may include processing technologies that are special types of work on the extraction of minerals (underground gasification and smelting, chemical and bacterial leaching, dredging and hydraulic development of placer deposits);
9) operator - a legal entity created or determined in accordance with the laws of the Republic of Kazakhstan by subsoil users carrying out subsoil use operations, as part of a simple partnership (consortium) under a production sharing agreement (contract);
10) extraction - the entire complex of works (operations) directly related to the extraction of hydrocarbons, minerals or solid minerals from the subsoil to the surface and (or) separation of minerals from their occurrence, including from technogenic mineral formations, also related to the withdrawal of underground water;
11) minerals - natural mineral formations, hydrocarbons and underground waters contained in the subsoil, also natural mineral formations and organic substances containing useful components, the chemical composition and physical properties of which enable their use in the material production and (or) consumption, and (or) other needs directly or after processing.
Article 11. Concepts related to the taxpayer (tax agent) location
The following places shall be recognized as the taxpayer (tax agent) location, depending on the categories of the entity including the taxpayer (tax agent):
1) place of residence of an individual - place of registration of a citizen in accordance with the legislation of the Republic of Kazakhstan in the field of population migration;
2) place of residence of a citizen of the Republic of Kazakhstan residing outside the Republic of Kazakhstan who does not have a place of registration in the Republic of Kazakhstan - the place of last registration of the citizen in the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan in the field of population migration;
3) location of a sole proprietor and a private practitioner - the place of predominant realization of their activity declared at tax registration in the Republic of Kazakhstan;
4) location of a resident legal entity, its structural subdivision, structural subdivision of a non-resident legal entity - location of its permanent body entered in the National Register of Business Identification Numbers upon registration in the Republic of Kazakhstan;
5) location of a non-resident legal entity operating through a permanent establishment without opening a structural subdivision - the place of activities in the Republic of Kazakhstan, declared at the tax registration in the Republic of Kazakhstan;
6) location of a legal entity established under the legislation of a foreign state, whose place of effective management is in the Republic of Kazakhstan - the location of the actual management body in the Republic of Kazakhstan, determined by the meeting of the Board of Directors or similar management body, declared at the tax registration in the Republic of Kazakhstan and indicated in the corresponding minutes of the management body;
7) place of stay of a foreigner or stateless person - place of temporary stay of a foreigner or stateless person declared at state registration in the Republic of Kazakhstan;
8) place of residence of a foreigner or stateless person not residing in the Republic of Kazakhstan, who has a tax obligation to pay individual income tax on the income received from sources in the Republic of Kazakhstan from a person who is not a tax agent - the place of residence (location) of the person paying to such foreigner or stateless person the income from sources in the Republic of Kazakhstan.
Article 12. Remuneration
The following shall be recognized as remuneration:
1) fees on loans (credits, micro-loans);
2) fees on a financial leasing agreement;
3) fees on a deposit;
4) fees on an accumulative insurance agreement;
5) fees on a promissory note;
6) fees on repo transactions;
7) fees on debt securities;
8) fees on Islamic lease certificates;
9) fees under a bank account agreement.
Remuneration on credits (loans, micro-loans) shall be all payments related to the credit (loan, microcredit) in cases when such payments are made to:
1) the lender;
2) a legal entity specified in the Laws of the Republic of Kazakhstan “On Banks and Banking Activity in the Republic of Kazakhstan” and “On Microfinance Activity” to which the right of claim under a credit (loan, microcredit) was assigned;
3) a person who is an interrelated party to the borrower.
The following shall not be remuneration on credits (loans, micro-loans):
1) the amount of credit (loan, microcredit) to be paid (received);
2) adjustment (indexation) of the amount of credit (loan, microcredit) to be paid (received) in tenge, due to changes in the exchange rate;
3) fees on money transfer by second-tier banks.
Remuneration on the financial leasing agreement shall be all payments related to the transfer of assets under the financial leasing agreement, where such payments are made:
1) to the lessor;
2) to a person who is an interrelated party for the lessee.
The following shall not be remuneration under a financial leasing agreement:
1) the value at which such assets are received (transferred) into financial leasing;
2) payments in connection with changes in the amount of lease payments when applying a coefficient (index) in accordance with the terms of the financial leasing agreement.
Remuneration on a deposit shall be all payments on a deposit in cases when such payments are made:
1) to the depositor;
2) a person who is an interrelated party for the person who accepted the deposit.
At the same time, the deposit amount shall not be the deposit remuneration.
Remuneration on a contract of endowment insurance shall be all payments related to the contract of endowment insurance where such payments are made:
1) to the insurer;
2) to a person who is an interrelated party for the policyholder.
The amount of the sum insured shall not constitute remuneration under the endowment insurance contract.
Remuneration on debt securities shall be payments in the form of discount on debt securities or coupon on debt securities (taking into account discount on debt securities or premium from the value of initial placement and (or) acquisition cost) in cases when such payments are made:
1) to the debt securities holder;
2) a person who is a related party to the person paying remuneration.
Remuneration on a promissory note shall be all payments on the promissory note where such payments are made:
1) to the promissory note holder;
2) to a person who is an interrelated party to the promissory note holder.
At the same time, the amount specified in the promissory note shall not be remuneration under the promissory note.
Remuneration on repo transactions are payments in the form of difference between closing price and repo opening price.
Remuneration on Islamic lease certificates is all payments on Islamic lease certificates.
Remuneration paid under the bank account agreement shall be the bank’s expenses on payment of income provided for by the bank account agreement.
The definition of remuneration established by this Article shall be applied regardless of the legislation of the state in which it arises.
Article 13. Dividends
The following types of dividends shall be recognized as dividends:
1) dividends from income distribution;
2) constructive dividends.
Income distribution dividend shall be the income:
1) in the form of net income or a part thereof payable on shares, including shares being the underlying assets of depositary receipts;
2) payable on units of a mutual investment fund, except for income on units when they are redeemed by the fund's management company;
3) in the form of net income or part thereof distributed by a legal entity among its founders, participants;
4) payable on Islamic participation certificates;
5) from the distribution of assets in the event of liquidation of a legal entity or reduction of the authorized capital, as well as repurchase by a legal entity from the founder, participant of an equity interest or part thereof in this legal entity, repurchase by the issuing legal entity from a shareholder of shares issued by this issuer, upon the withdrawal of a lawyer who is a partner of a law firm from such law firm, termination of legal practice through such a law firm or liquidation of a law firm;
6) in the form of an increase in a contribution to the authorized capital of a legal entity by increasing the amount of the authorized capital of the legal entity at the expense of the equity of such legal entity, except:
additionally paid-in capital in the form of an excess of the value of assets received by the issuer from the placement of shares issued by it over the nominal value of such shares;
additional contributions of a participant of a legal entity to the property of such legal entity;
revaluation surplus.
A constructive dividend is income:
1) received by a shareholder, participant, founder or an interconnected party from a legal entity, arising from the adjustment of taxable items and (or) items related to taxation, made in cases and in accordance with the procedure established by the legislation of the Republic of Kazakhstan on transfer pricing.
When calculating this income, the interrelated parties shall be determined in accordance with the legislation of the Republic of Kazakhstan on transfer pricing;
2) received by a shareholder, participant, founder or their related party from a legal entity in the form of:
value of expenses or liabilities unrelated to business activities of the legal entity arising from its shareholder, participant, founder or their related party to a third party, repaid by the legal entity without its reimbursement by the shareholder, participant, founder or their related party to the legal entity;
any property and material benefit provided by a legal entity to its shareholder, participant, founder or their related party, except for employee income and income from the sale of goods, works, services.
For the purposes of part one of this subparagraph, related parties shall be defined in accordance with Article 14 of this Code.
Income received by a shareholder, participant, founder or their related party from a legal entity in the form of royalties for the use or rights to use patented industrial property objects in commercial activities shall not be recognized as constructive dividend.
The income from the distribution of assets specified in subparagraph 5) of paragraph 2 of this Article shall be determined as follows:
І = Vr - Ap,
where: І - is income from the distribution of assets;
Vr - the book value of assets (to be) received by a shareholder, participant, founder, partner of a law firm upon the distribution of assets, including those (to be) received in return for previously contributed ones, at the date of transfer, (to be) stated in the accounting records of the transferring party, without revaluation and depreciation;
Ap: - is the amount of paid-in authorized capital attributable to the number of shares for which the assets are distributed, taking into account additionally paid-in capital in the form of an excess of the value of the assets received by the issuer from the placement of its issued shares over the par value of such shares;
the amount of the paid-in authorized capital attributable to the participation share, to which the assets are distributed, taking into account additional contributions of a participant of a legal entity to the assets of such legal entity and increase in the amount of the authorized capital at the expense of the legal entity’s equity capital, but not exceeding the initial value of such participation share, in the manner determined by this Code, of the participant in whose benefit the assets are distributed;
the value of the assets transferred by a lawyer who is a partner of a law firm into the ownership of such a law firm.
Article 14. Interrelated parties
Interrelated parties shall mean individuals and/or legal entities that have relationships meeting one or more of the following conditions:
1) one person is recognized as an affiliate of another person in accordance with the laws of the Republic of Kazakhstan;
2) one person is a major participant in another person;
3) persons are bound by an agreement under which one of them has the right to determine decisions made by the other;
4) the legal entity is controlled by a major shareholder, major participant or official of another legal entity;
5) a major shareholder, major participant or official of one legal entity is a major shareholder, major participant or official of another legal entity;
6) the legal entity together with another legal entity is controlled by a third party;
7) the person jointly with its affiliated persons holds, uses, disposes of ten or more percent of participation interests of the legal entity or legal entities specified in subparagraphs 2) - 6) of part one of this paragraph;
8) an individual is an official of a legal entity specified in subparagraphs 2) - 7) of part one of this paragraph, except for an independent director of a joint stock company;
9) an individual is a spouse, close relative or an in-law (brother, sister, parent, son or daughter of a spouse of a major participant or an officer of a legal entity.
A major participant for the purposes of this paragraph shall mean a participant whose share in the assets of a legal entity, except for joint-stock companies, is ten and more percent.
Control over a legal entity shall mean the ability to determine decisions made by the legal entity.
When adjusting taxable items and (or) items related to taxation within the framework of transfer pricing, the related parties are determined in accordance with the legislation of the Republic of Kazakhstan on transfer pricing.
Article 15. An organization engaged in social sphere
A legal entity engaged in one or more types of social sphere activities specified in paragraph 2 of this article, whose income, taking into account the income under paragraph 3 of this article, is at least 90 percent of the total annual income, shall be recognized as an organization operating in the social sphere.
Activities in the social sphere shall include the following types:
1) medical services, including those provided as a package, in accordance with the legislation of the Republic of Kazakhstan by a healthcare entity licensed for medical activity;
2) services in education:
provided under licenses for educational activities;
preschool education and training;
additional education provided by an educational organization licensed for educational activities;
3) scientific and (or) scientific-technological activity (including scientific research, use, including realization, of intellectual property objects), carried out by scientific and (or) scientific-technological activity entities, accredited by the authorized body in the field of science.
The income specified in part one of this subparagraph shall also include the income of scientific and (or) scientific-technological entities, accredited by the science authority, in the form of funding for the establishment of scientific centers under research universities;
4) sport activities;
5) culture activities carried out by cultural organizations;
6) provision of services on conservation of historical and cultural heritage sites included in the State List of Historical and Cultural Monuments in accordance with the legislation of the Republic of Kazakhstan (except for dissemination of information and propaganda);
7) provision of assistance to persons (families) recognized to be in need of special social services;
8) library services;
9) activity of autonomous educational organizations:
on the following education levels established by the laws of the Republic of Kazakhstan: elementary school (including preschool education and training), basic school, high school, post-secondary education, higher education, postgraduate education;
on additional education;
scientific-technological, innovative, research activity (including fundamental and applied scientific research).
For the purposes of applying paragraph 1 of this Article, the following types of income shall also be taken into account:
1) income in the form of gratuitously received property (including charitable and sponsorship assistance);
2) admission fees, membership fees and other receipts on a gratuitous and non-refundable basis from a founder, participant, member;
3) remunerations on deposits;
4) excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference.
Organizations engaged in social sphere shall not include organizations receiving income from the production and sale of excisable goods.
Article 16. Agricultural cooperative
An agricultural cooperative is a legal entity established in accordance with the legislation of the Republic of Kazakhstan on agricultural cooperatives, engaged in one and (or) several types of activities:
1) production of agricultural output (except for excisable products) and their sale;
2) procurement, storage and sale of agricultural output produced by members of such a cooperative;
3) processing of agricultural products (except for excisable products) of own production and (or) produced by members of such a cooperative, as well as sale of products obtained through such processing;
4) performance of work and provision of services for members of such a cooperative for the purpose of production and processing of own-produced agricultural products, including auxiliary work and services;
5) sale of products to members of such a cooperative for the purpose of production and processing of own- produced agricultural output.
The list of goods, works, and services provided for in subparagraphs 4) and 5) of part one of this paragraph shall be approved by the authority in agro-industrial complex development in agreement with the central authorized state planning body.
The provisions of this Code applicable to agricultural cooperatives shall apply in the presence of land plots held under private ownership and/or land use rights (including secondary land use rights).
The requirement of the first part of this paragraph shall not apply to agricultural cooperatives producing beekeeping products, as well as the processing and sale of the said products of their own production.
Article 17. Participant in Astana Hub
A participant in Astana Hub is a legal entity that meets all of the following conditions:
1) is incorporated in the Astana Hub autonomous cluster fund as a participant in accordance with the legislation of the Republic of Kazakhstan on innovation clusters;
2) at least 90 percent of the total annual income of such a legal entity consists of income from priority activities in the information and communication technologies;
3) in the case of the production and sale of goods, such goods meet the criteria for own production.
When determining the income referred to in subparagraph 2) of the first part of this paragraph, the following income shall also be accounted if it is related to the receipt of income from priority activities in the information and communication technologies:
income in the form of property received free of charge,
interest on deposits,
excess of positive exchange rate differences over negative exchange rate differences,
income from doubtful pledges, including penalties and fines on such pledges.
The list of priority activities in the information and communication technologies and the criteria for domestic production shall be approved by the authorized body in informatization in agreement with the central authorized state planning body, the authority the technical regulation, the authority in the state support for innovative activities, and the authorized body.
Article 18. Concepts related to securities
Concepts related to securities:
1) debt securities - securities certifying the issuer's (debtor's) obligation to pay the principal debt amount under the terms of the issue of such securities, including government securities and bonds;
2) discount on debt securities (hereinafter referred to as discount) - the positive difference between the par value and the initial placement price (excluding the coupon) or the acquisition price (excluding the coupon) of debt securities;
3) coupon on debt securities (hereinafter referred to as coupon) - the amount paid (payable) by the issuer in excess of the nominal value of debt securities in accordance with the terms of issue;
4) debt securities premium - the positive difference between the initial placement price (excluding the coupon) or the acquisition price (excluding the coupon) and the nominal value of debt securities, the terms of issue of which provide for the payment of a coupon;
5) Islamic securities - Islamic lease certificates and Islamic participation certificates.
Article 19. Concepts related to cash settlements and cash registers
Concepts related to cash settlements and cash registers:
1) cash settlements - settlements made for the purchase of goods, performance of work, provision of services using cash and/or settlements using payment cards and/or mobile payments;
2) State Register of Cash Registers (hereinafter referred to as the Register of Cash Registers) - a list of cash register models approved by the authorized body for use in the Republic of Kazakhstan;
3) cash register - an electronic device with a fiscal memory unit and a hardware and software complex without a data transfer function, an electronic device and a hardware and software complex with a data recording and/or transfer function, ensuring the registration and display of information on cash settlements;
4) cash register registration card - an accounting document confirming the fact of registration (deregistration) of a cash register with the tax authority;
5) cash register receipt - a primary accounting document of a cash register confirming the fact of a monetary transaction between the seller (supplier of goods, work, services) and the buyer (customer), issued on paper or in electronic form;
6) service payment terminal - an electronic-mechanical device for accepting cash or payments using payment cards and/or mobile payments for provided services;
7) vending machine - an electronic-mechanical device that sells goods using cash or payment cards and/or mobile payments in automatic mode;
8) sales check- a primary accounting document confirming the fact of monetary settlement, used in cases of technical malfunction of the cash register or power failure;
9) sales check book - a collection of sales receipts bound together in a book;
10) three-component integrated system - an integrated system consisting of a cash register with data recording and transmission functions, a system (device) for accepting non-cash payments, as well as equipment (devices) with a system for automating the management of trade, the provision of services, performance of work, and accounting for goods, or a software and hardware complex replacing all three components of the integrated system;
11) fiscal attribute - a distinctive symbol displayed on cash register checks as confirmation of the cash register operation in fiscal mode;
12) fiscal data - information on cash settlements with a fiscal attribute, recorded in the fiscal memory of a cash register with a fiscal memory unit or a fiscal data storage device of a cash register with a data recording and/or transmission function, and transmitted to the tax authorities;
13) fiscal data storage device - a set of software and hardware tools that ensure uncorrectable registration and non-volatile long-term storage of information on cash settlements made in a cash register with a data recording and/or transmission function;
14) fiscal data operator - a legal entity that ensures the transfer of information on cash settlements in real time to tax authorities via public telecommunications networks, included in the list of fiscal data operators;
15) fiscal mode - the operation mode of a cash register that ensures unalterable recording and non-volatile long-term storage of information in the fiscal memory or fiscal data storage device with simultaneous transfer of information on cash settlements to tax authorities through a fiscal data operator.
Article 20. A state with preferential taxation
A foreign state or territory shall be recognized as a preferential tax jurisdiction if it meets one of the following conditions:
1) the income tax rate in such a state or territory is less than 10 percent;
2) such a state or territory has laws on the confidentiality of financial information or laws that enable secrecy on the actual owner of assets, income or the actual owners, participants, founders, shareholders of a legal entity (company).
The provisions of subparagraph 2) of the first part of this paragraph shall not apply to a foreign state or territory with which the Republic of Kazakhstan has an international treaty providing for the exchange of information between competent authorities on taxation matters, except for a foreign state or territory that does not provide for the exchange of information with the authorized body for taxation purposes.
A foreign state or territory shall be recognized as not providing or not ensuring the exchange of information with the authorized body for tax purposes if one of the following conditions is fulfilled:
1) the authorized body has received a written refusal from the competent or authorized body of a foreign state or territory to provide information, the exchange of which is envisaged by an international treaty;
2) the competent or authorized body of a foreign state or territory has not provided the requested information for more than two years after the authorized authority sent the relevant request.
The list of states with preferential taxation, determined under paragraphs 1 and 2 of this article, shall be approved by the authorized body.
Article 21. Other concepts
Other concepts:
1) monthly calculation index - the monthly calculation index established by the law on the republican budget for the relevant financial year and effective on the date specified by this Code;
2) social obligation - obligations to calculate, withhold, and transfer social payments;
3) official currency exchange rate - the official exchange rate of the national currency of the Republic of Kazakhstan against foreign currencies, established by the National Bank in accordance with the Law of the Republic of Kazakhstan On the National Bank of the Republic of Kazakhstan;
4) minimum wage - the minimum wage established by the law on the republican budget for the relevant financial year and effective on the date specified in this Code;
5) information on the absence (presence) of arrears, which is recorded by the tax authority (hereinafter referred to as information on the absence (presence) of arrears) - a document confirming the presence or absence of debt on taxes and payments to the budget, social payments, penalties, and fines, which are recorded by the tax authority.
The form of information on the absence (presence) of debt shall be established in accordance with the procedure for maintaining a personal account (hereinafter referred to as the procedure for maintaining a personal account) established by the authorized body;
6) The arithmetic average official exchange rate for the period is the rate determined by the following formula:
R = (R1 + R2 + ... + Rn)/n,
where:
R - is the arithmetic average official exchange rate for the period;
R1, R2, Rn - is the official exchange rate of the relevant currency set for each business day of the period during the period;
n - number of working days in the period.
In this case, the term “arithmetic average official exchange rate for the period” used in this Code corresponds to the average official exchange rate for the period published by the National Bank;
7) shareholding - equity participation of an individual and/or legal entity in joint activities, in the authorized capital of a legal entity, with the exception of joint stock companies and mutual investment funds;
8) fixed asset classifier - classification of fixed assets approved by the authority in technical regulation under the Law of the Republic of Kazakhstan On Standardization for the purpose of accounting for fixed assets in the fields of accounting and statistical accounting;
9) tax authority’s information system - an information system owned by the authorized body and intended for tax administration;
10) tax authority identification data - name, code, address of the tax authority;
11) state database of taxpayers (hereinafter referred to as the taxpayer database) - an information system intended for tax registration of taxpayers;
12) personal account of the taxpayer (tax agent) (hereinafter referred to as the personal account) - a document for recording calculated, charged (reduced), transferred and paid (taking into account offset and refunded) amounts of taxes and payments to the budget, social payments, as well as amounts of penalties and fines;
13) identification data of the taxpayer (tax agent) - surname, first name and patronymic (if indicated in the identity document) (hereinafter referred to as the surname, first name and patronymic) or title, identification number, location, and also in cases where the taxpayer (tax agent) is a legal entity - surname, first name and patronymic of the director;
14) tax mobile application - a software product installed and launched on a subscriber's cellular device for the taxpayer to receive electronic tax services and fulfill his tax obligations;
15) national registries of identification numbers (hereinafter referred to as number registries) - state databases intended for the registration of individual identification numbers of individuals and business identification numbers of legal entities (branches and representative offices), individual entrepreneurs operating in the form of joint ventures;
16) accompanying invoice for goods - a shipping document for monitoring the movement of goods, including confirming the shipment of goods to the taxpayer;
17) winnings - income in kind and in cash received by the taxpayer in contests, competitions (Olympiads), lottery festivals, raffles, including raffles on deposits and debt securities, as well as income in the form of property benefits received in gambling and (or) betting;
18) electronic invoices information system - the tax authority’s information system, through which invoices are issued in electronic form, acceptance, processing, registration, transfer and storage of electronic invoices and statements of work performed, services provided, accompanying invoices for goods issued in electronic form are carried out.
In this case, the term “electronic invoice” used in this Code is identical to the concept of “invoice issued in electronic form”.
Paragraph 2. Legal framework of taxation
Article 22. Tax legislation of the Republic of Kazakhstan
The tax legislation of the Republic of Kazakhstan is based on the Constitution of the Republic of Kazakhstan and consists of this Code and regulatory legal acts, the adoption of which is provided for by this Code.
No one may be obligated to pay taxes and payments to the budget not provided by this Code.
In the event of a contradiction between this Code and other laws of the Republic of Kazakhstan, the provisions of this Code shall apply for taxation purposes.
It is prohibited to include provisions regulating tax relations in the non-tax legislation of the Republic of Kazakhstan, except for cases provided for by this Code.
International treaties ratified by the Republic of Kazakhstan shall have priority over this Code. The procedure and conditions for the effect on the territory of the Republic of Kazakhstan of international treaties to which the Republic of Kazakhstan is a party shall be determined by the legislation of the Republic of Kazakhstan.
Article 23. The effect of the tax legislation of the Republic of Kazakhstan
The tax legislation of the Republic of Kazakhstan shall be effective throughout the territory of the Republic of Kazakhstan and shall apply to all individuals, legal entities and their structural divisions, which are defined by this Code as payers of taxes and payments to the budget, as well as parties to the relevant tax and other procedures for the collection and administration of taxes and payments to the budget.
Laws introducing amendments and additions to this Code in terms of establishing a new tax and (or) payment to the budget, raising the rate, changing the object of taxation and (or) the tax base, increasing the categories of taxpayers (tax agents), canceling or reducing the deduction or benefit for the payment of taxes and payments to the budget, may be adopted no later than July 1 of the current year and put into effect no earlier than January 1 of the year following the year of their adoption.
Amendments and (or) additions to this Code shall be made by a law that does not provide for amendments and additions to other legislative acts of the Republic of Kazakhstan.
Alongside this, when introducing amendments and (or) additions to this Code by way of legislative initiative of the Government of the Republic of Kazakhstan, the draft of such law shall be developed by the authorized body in tax policy and (or) the central authorized body for budget execution.
Provisions of laws establishing new types of taxes and (or) payments to the budget, raising rates, setting new obligations, and also worsening the position of the taxpayer (tax agent) shall not have retroactive effect.
Article 24. The main goal and objective of the tax legislation of the Republic of Kazakhstan
The main goal of the tax legislation of the Republic of Kazakhstan is to establish taxes and payments to the budget, applicable in the territory of the Republic of Kazakhstan, as well as the rights and obligations of the parties to tax legal relations to ensure the fulfillment of tax obligations based on the principles of taxation.
The main objective of the tax legislation of the Republic of Kazakhstan is to establish a legal framework for the calculation and payment of taxes and payments to the budget, fulfillment of tax obligations.
Article 25. Principles of Taxation
The tax legislation of the Republic of Kazakhstan is based on the principles of taxation established by this Code.
The principles of taxation include the principles of bindingness, definiteness of taxation, fairness of taxation, transparency of taxation, integrity of the taxpayer (tax agent), unity of the tax system and publicity of the tax legislation of the Republic of Kazakhstan.
The provisions of the tax legislation of the Republic of Kazakhstan must not contradict the principles of taxation.
Article 26. The principle of bindingness of taxation
The taxpayer (tax agent) is obliged to fulfill the tax obligation in accordance with the tax legislation of the Republic of Kazakhstan in full and within the established timeframes.
Article 27. The principle of definiteness of taxation
Taxes and payments to the budget of the Republic of Kazakhstan have to be definite. Definiteness of taxation shall mean the establishment in the tax legislation of the Republic of Kazakhstan of all the grounds and procedure for the occurrence, fulfillment and termination of a taxpayer's (tax agent's) tax obligation.
Article 28. The principle of transparency of taxation
Taxation in the Republic of Kazakhstan shall be based on the transparency principle, which implies ensuring openness, clarity and accessibility of information on taxes and payments to the budget, the procedure for their calculation, payment, control over their receipt during tax audits for all the tax legal relations entities.
When implementing tax administration, the tax authorities shall be obliged to act openly, objectively and in strict accordance with the requirements of the legislation of the Republic of Kazakhstan.
The taxpayer (tax agent) shall have the right to receive a reasoned, clear and comprehensive explanation on the application of the tax legislation of the Republic of Kazakhstan, also on the actions (inaction) of tax authorities within the tax administration framework.
Violation of the principle of transparency of taxation shall be the ground for appealing the actions (inaction) of tax authorities in the procedure established by this Code.
Article 29. The principle of fairness of taxation
Taxation in the Republic of Kazakhstan is universal and mandatory.
Provision of individual tax benefits shall be prohibited.
No one may be subject to repeated taxation by the same type of tax, the same type of payment to the budget for the same taxable object over the same period.
Article 30. The principle of integrity of tax payers (tax agents)
Integrity is assumed in the tax payer’s (tax agent’s) actions (inaction) in the fulfillment of the tax obligation.
A taxpayer may not reduce the tax liability as a result of:
distortion of information on the facts of economic activity (a set of such facts), on taxable items subject to reflection in the tax and (or) accounting records or tax reporting of the taxpayer;
transactions for the purpose of non-payment (incomplete payment) of the tax amount;
fulfillment of an obligation under a transaction (operation) by a person who is not a party to the agreement.
Understatement of the amounts of taxes and payments to the budget in tax reporting and (or) their non-payment by the supplier cannot be the only justification for not confirming the fact of mutual settlements with this supplier.
If a tax obligation fulfilled by a taxpayer (tax agent) in accordance with a previously received individual written explanation from an authorized body, later withdrawn, is found to be erroneous or a new, different explanation is sent, then the tax obligation is subject to correction (adjustment) when considering a complaint against notification of the tax audit results without charging fines to the taxpayer and penalties.
Breaching by a taxpayer (tax agent) of the tax legislation of the Republic of Kazakhstan and other legislation of the Republic of Kazakhstan related to a tax obligation fulfillment must be described during tax audits.
The tax authorities shall substantiate arguments and disclose circumstances pointing to breaching of the tax legislation of the Republic of Kazakhstan and other legislation of the Republic of Kazakhstan.
When considering a complaint about a notification of the tax audit results, all uncertainties and unresolved issues of the tax legislation of the Republic of Kazakhstan shall be construed in favor of the taxpayer (tax agent).
When determining tax liabilities, it is not allowed to account for assets, income and expenses received (incurred) as a result of a criminal offense (act), which are recognized as a bribe and (or) other illegal material remuneration on the basis of an effective judicial act or a resolution to terminate a criminal case on non-rehabilitating grounds.
Article 31. The principle of unity of the tax system
The tax system of the Republic of Kazakhstan is uniform throughout the territory of the Republic of Kazakhstan with respect to all taxpayers (tax agents).
Article 32. The principle of transparency of tax legislation of the Republic of Kazakhstan
Regulatory legal acts on taxation issues are subject to mandatory official publication.
Paragraph 3. General provisions on tax policy
Article 33. Tax policy
Tax policy is a set of measures to establish new and cancel existing taxes and payments to the budget, change rates, items of taxation and items related to taxation, the tax base for taxes and payments to the budget in order to meet the financial needs of the state based on observing a balance of economic interests of the state and taxpayers.
Article 34. Tax benefits
Tax benefit is an advantage granted in accordance with the norms of the tax legislation of the Republic of Kazakhstan to taxpayers in the form of a rate reduction, complete exemption from paying one or more taxes, deductions, adjustments from the taxable base.
In accordance with the Budget Code of the Republic of Kazakhstan the tax policy authority shall annually prepare an analytical report on tax expenses containing an assessment of the efficacy of tax benefits and the expediency of their further application.
Requests from authorized state bodies shall warrant consideration by the tax policy authority of the issue of granting a tax benefit.
In the event of a need to provide (extend) a tax benefit for the supervised industries, authorized state bodies shall send to the tax policy authority justifications for the need for the said benefit in the procedure established by the Government of the Republic of Kazakhstan.
Before applying to the tax policy authority, the authorized state bodies shall coordinate the proposed (extended) tax benefit with the antimonopoly body and the central authorized body for budget execution.
When applying to the tax policy authority the authorized state bodies shall submit an opinion on compliance with the legislation of the Republic of Kazakhstan in the competition protection, issued by the antimonopoly body, and an opinion issued by the central authorized body for budget execution.
The tax policy authority, together with the central authorized body for budget execution, initiates proposals to grant or deny a tax benefit, extend or cancel a tax benefit, and the period for granting a tax benefit.
Authorized state bodies are required to monitor and control tax benefits in the supervised industries.
In the event of failure to achieve the socio-economic goals declared when introducing a tax benefit, and also taking into account its impact on the budget, the tax policy authority, together with the central authorized body for budget execution shall initiate clarification or cancellation of the tax benefit.
In this case the criteria for achieving the socio-economic goals of applying tax benefits and the procedure for establishing them shall be determined by the Government of the Republic of Kazakhstan.
Tax benefits cannot be provided if the amount of existing tax benefits reaches the threshold of ten percent of the gross domestic product for the calendar year preceding the current year.
Article 35. Methodological Council on Taxation Issues
In order to develop proposals to eliminate ambiguities, inaccuracies and contradictions that may arise in the course of fulfilling tax obligations, a Methodological Council on Taxation Issues shall be formed.
The Regulation on the Methodological Council on Taxation Issues and its composition shall be approved by the Prime Minister of the Republic of Kazakhstan.