Loss on business activities in cameral control

When carrying out business activities based on the results of the established reporting tax period, the result of the taxpayer's financial and economic activities may be both profit and loss.

A loss on business activity is recognized as:

1. Excess of deductions over the total annual income, taking into account adjustments (provided for in Article 241 of the Code on Taxes and Other Mandatory Budget Payments, hereinafter - the Code);
2. Loss on the sale of the enterprise as a property complex.

Losses on business activities, as well as losses on the disposal of fixed assets of the first group  and losses on sale of construction in progress objects , unidentified equipment, with the exception of assets purchased for state needs in accordance with the laws of the Republic of Kazakhstan, are transferred to the next ten years inclusive to be repaid at the expense of taxable income of these tax periods.

Taxpayers often make mistakes in determining the taxable income or loss based on the results of financial and economic activities when submitting tax reports, namely the corporate income tax declaration (hereinafter r- CIT declaration) for the relevant tax period.

When conducting desk control, the state revenue authorities compare the data of the CIT declaration for the presence of an error in the format and logical control, as well as between the CIT declarations for the periods provided earlier, in order to identify incorrect determination of taxable income (loss) or incorrectly indicated losses transferred from previous tax periods.

Taxpayers, in order to exclude the sending of documents to their address on the identified violations by the state revenue authorities, should be guided by the Rules for preparing tax reports on the CPN developed in accordance with the Tax Code, as well as other legislative acts of the Republic of Kazakhstan.