On Taxes And Other Obligatory Payments Into The Budget (Tax Code)

New Unofficial translation

Code of the Republic of Kazakhstan dated December 10, 2008 No. 99-IV

Unofficial translation

      Footnote. See the Law of the Republic of Kazakhstan dated December 10, 2008 No. 100 "On Introduction of the Code of the Republic of Kazakhstan "On Taxes And Other Obligatory Payments Into The Budget" (Tax Code).

      Footnote. Throughout the whole text the words "in the state and (or) in the Russian language", "the state and the Russian language", "in the state or in the Russian language" are replaced by the words "in the Kazakh and (or) in the Russian language", "the Kazakh and Russian language", "in the Kazakh or in the Russian language" respectively; the adjective"(share)" is deleted by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).

      Note of the RCLI (Republican Centre of Legal Information)!
      Until January 1, 2013 throughout the text of the Code, except for the Articles 39, 40, 561, 563, 564, 580, paragraphs 8, 9 of Article 562, sub-paragraph 2) of paragraph 5 of Article 570 and sub-paragraph 3) of Article 581, the terms "identification number", "the identification numbers", "on identification number", "of identification number" according to the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV shall respectively be given the same meaning as the terms "registration number", "the registration numbers", "on registration number" "of registration number".

1. GENERAL PART

Section 1. General provisions

Chapter 1. BASIC PROVISIONS

Article 1. Relations regulated by this Code

      This Code regulates relations on the establishment, introduction and manner of calculation and payment of taxes and other obligatory payments into the budget, as well as relations between the State and the taxpayer (tax agent), connected with the fulfillment of tax obligations.

Article 2. Tax legislation of the Republic of Kazakhstan

      1. The tax legislation of the Republic of Kazakhstan is based on the Constitution of the Republic of Kazakhstan and consists of this Code and regulations, introduction of which is provided for by this Code.
      2. No one may be obliged to pay taxes or other obligatory payments into the budget that are not provided for by this Code.
      3. Taxes or other obligatory payments into the budget are established, introduced, amended and repealed in the manner and on the conditions, established by this Code.
      4. In the case of a contradiction between this Code and other legislation of the Republic of Kazakhstan, the provisions of this Code apply in relation to taxation. It is prohibited to include laws which regulate tax affairs into non-tax legislation except where provided for by this Code.
      5. If an international treaty, which has been ratified by the Republic of Kazakhstan, establishes provisions other than those established in this Code, the provisions of the treaty shall be applied.

Article 3. Operation of the tax legislation of the Republic of Kazakhstan

      1. The tax legislation of the Republic of Kazakhstan operates throughout the whole territory of the Republic and applies to individuals, legal entities and their structural subdivisions.
      Note of the RCLI!
      Paragraph 2 shall be enforced from 01.07.2011 (see Article 1 of Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV)
      2. Legislative Acts of the Republic of Kazakhstan, making amendments and additions to this Code, except for amendments and additions relating to tax administration, details of establishing tax reporting, as well as improvement of taxpayers’ (tax agents’) position, may be adopted no later than November 1 of the current year and shall come into force no earlier than January 1 of the year following the year of their adoption.

Article 4. Taxation principles in the Republic of Kazakhstan

      1. The tax legislation of the Republic of Kazakhstan is based on taxation principles. These principles are: the principle of the obligatory nature, certainty, and fairness of taxation, the unity of the tax system and the transparency of the tax legislation of the Republic of Kazakhstan.
      2. Provisions of the legislation of the Republic of Kazakhstan may not contradict the taxation principles established by this Code.

Article 5. The principle of obligatory taxation

      A taxpayer must satisfy his tax obligation, a tax agent -his obligations in relation to calculation, withholding and remittal of taxes in accordance with the tax legislation of the Republic of Kazakhstan in full and within the prescribed period.

Article 6. The principle of certainty

      Taxes and other obligatory payments into the budget of the Republic of Kazakhstan must be certain. This means all grounds for and the manner in which a taxpayer’s tax liabilities arise, are fulfilled and cease and the obligations of a tax agent with regard to calculation, withholding and remittal of taxes arise, are fulfilled and cease must be established in the tax legislation.

Article 7. The principle of fairness of taxation

      1. Taxation in the Republic of Kazakhstan is universal and obligatory.
      2. The granting of tax benefits of an individual character is prohibited.

Article 8. The principle of unity of the tax system

      The tax system of the Republic of Kazakhstan is a unified system operating throughout the entire Republic of Kazakhstan with respect to all taxpayers (tax agents).

Article 9. The principle of transparency of the tax legislation of the Republic of Kazakhstan

      Regulations governing taxation issues are subject to obligatory publication in the official media.

Article 10. Tax policy

      The tax policy is a set of measures relating to the establishment of new and the cancellation of current taxes and other obligatory payments into the budget, changes in interest rates, objects of taxation and objects related to taxation, the tax base on taxes and other obligatory payments into the budget in order to provide for the financial needs of the state on the basis of a balance between the economic interests of the state and taxpayers.

Article 11. Advisory council on taxation

      1. With the aim of coming up with suggestions of ways to eliminate ambiguities, inaccuracies and contradictions which may occur during the fulfillment of tax obligations, and also to preclude possible schemes for the evasion of taxes and other obligatory payments into the budget, the Government of the Republic of Kazakhstan has the right to establish an Advisory Council.
      2. The composition of the Advisory Council and its regulations are approved by the Government of the Republic of Kazakhstan.

Article 12. Definitions used in this Code

      1. Definitions used in this Code for the purposes of taxation:
      1) "information processing services" means services for the collection and collation of information, systematization of document files (data) and the provision of the results of the information processing to a user;
      2) "special tax regime" means special means of accounting to the budget, established for certain categories of taxpayers and providing for the application of a simplified order of calculation and payment of certains of taxes and fees for land use, and reporting on them;
      3) "securities" means shares, debt securities, depository receipts, shares in mutual investment funds, Islamic securities;
      4) "other obligatory payments" means the obligatory money transfers into the budget in the form of fees, charges, duties, except for customs duties, arising in the amounts and in those cases, prescribed by this Code;
      5) "arrears" means sums of taxes and other obligatory payments into the budget, which have been calculated, charged and not paid on time, including advance and (or) current payments on them, except for sums reflected in a notice of the results of a tax audit which is being appealed in the manner established by the relevant legislation of the Republic of Kazakhstan;
      6) "debt securities" means government-issued securities, bonds and other securities, recognized as debt securities in accordance with the legislation of the Republic of Kazakhstan;
      7) "discount on debt securities" means a disparity between the nominal value and the value of IPO (Initial Public Offering) (without coupons) or purchase cost of the debt securities (without coupons);
      8) "coupon on debt securities" (hereinafter "coupon") means a sum paid by the issuer in excess of the nominal value of debt securities in accordance with the conditions of issue;
      9) "bonus in debt securities" means a disparity between the IPO value (without coupon) or the cost of the purchase (without coupon) and the nominal value of the debt securities, the conditions of the issuance of which provide for the payment of the coupon;
      10) "market rate of currency exchange" means the average exchange rate of tenge to a foreign currency which has been established at the main session of a stock exchange operating in the territory of the Republic of Kazakhstan, and determined in the manner established by the National Bank of the Republic of Kazakhstan together with the authorized state body responsible for regulating activity in the sphere of accounting and financial reporting, and of the exchange rate of tenge to a foreign currency, in which no stock exchange, operating in the territory of the Republic of Kazakhstan, conducts trades, calculated using cross-rates according to the procedure established by the National Bank of the Republic of Kazakhstan together with the authorized state body responsible for regulating activity in the accounting and financial reporting sphere;
      10-1) "web-application" means an internet resource of an authorized body that is personalized and protected from unauthorized access and designed to enable receipt by taxpayers of electronic tax services and fulfillment by them of their tax obligations;
      11) "grant" means property, presented free of charge for achieving certain goals (tasks):
      by states and state governments to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
      by international and governmental organizations, foreign and Kazakh non-governmental public organizations and foundations, whose work has a charitable and (or) international nature and does not conflict with the Constitution of the Republic of Kazakhstan, and who are included in the list, established by the Government of the Republic of Kazakhstan, in agreement with findings of state bodies to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
      by foreigners and stateless persons to the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;
      Note of the RCLI!
      The sub-paragraph shall be enforced from January 1, 2009 and operates until January 1, 2016 (see Article 2 of Law of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV).
      For the purposes of this Code, a property, received free of charge by Kazakh non-governmental public foundations under the auspices of an intergovernmental agreement, to which the Republic of Kazakhstan is a signatory, which aims to support (offer assistance to) low-income citizens in the Republic of Kazakhstan, for achievement of the goals (tasks), determined by such agreement, shall be recognized as a grant.
      12) "humanitarian aid" means property that is provided free of charge to the Republic of Kazakhstan in the form of food, consumer goods, machinery, equipment, tools, medical equipment and medicines, other property sent from foreign countries and by international organizations to improve the living conditions and daily life of the population, and likewise to prevent and eliminate emergencies of a military, ecological, natural and manmade character, and which is distributed by the Government of the Republic of Kazakhstan through the authorized organizations.
      13) "sponsored help" means property, provided free of charge with the aim of disseminating information about the person, who provided the property:
      to individuals in the form of financial (except for social) support for participation in competitions, contests, exhibits, shows and for the development of creative, scientific, technical, and inventive activities and to raise the level of education and of sporting achievement;
      to non-commercial organizations for realization of their statutory goals;
      14) "dividends" means the income payable on shares, and including shares, which are the basic assets of depositary receipts; the income, payable on the shares of mutual investment fund, except for the income on shares at their redemption by a managing company of the fund; a part of the net income, distributed by a legal entity among its founders and shareholders; the income from distribution of property during liquidation of a legal entity or upon reduction of the authorized capital via proportional lowering of the size of contributions of the founders or participants or by full or partial extinguishing of shares of founders or participants, and also during withdrawal of its share in a legal entity by a founder or a participant, except for property, contributed into the authorized capital by the founder or shareholder; the income payable on Islamic participation certificates; the income, received by a shareholder, participant, founder or by a connected party from a legal entity in the form of:
      a positive disparity between the market price of the goods, works, services and the price for which these goods, works and services were sold to a shareholder, participant, founder or to a connected party;
      a negative disparity between the market price of the goods, works, services and price, for which these goods, works and services were purchased from a shareholder, participant, founder or from a connected party;
      the cost of the expenditures and obligations, not connected with the business activity of a legal entity, that a shareholder, participant, founder or a connected party has to a third party, which is paid by the legal entity without its reimbursement by the shareholder, participant, founder or their connected party to the legal entity;
      any property or material benefit, provided by a legal entity to its shareholder, participant, founder or a connected party, except for the income, specified in Articles 163 - 165 of this Code and the income from selling of goods and services.
      A positive or negative disparity, mentioned in this sub-paragraph, is determined during the adjustment of taxation objects. The adjustment of taxation objects shall be performed in accordance with the provisions of the legislation of the Republic of Kazakhstan on transfer pricing. For the purposes of this sub-paragraph, connected parties are defined in compliance with the paragraph 1-1 of this Article;
      15) "design services" means services for designing forms of art, the external appearance of products, building facades, interior spaces; artistic construction;
      16) "false enterprise" means a private entity, the establishment and (or) management of which is recognized by an issued verdict or a decision of a court as a false enterprise in accordance with the legislation of the Republic of Kazakhstan;
      17) "personal property of an individual" means property or a share in common property in material form belonging to an individual, which is not intended to be used for business purposes;
      18) "subsoil users" means the individuals or legal entities, which have the right to conduct mining operations, including oil operations, in the territory of the Republic of Kazakhstan in accordance with the Laws of the Republic of Kazakhstan.
      19) "structural subdivision of a legal entity" means a branch or representative office;
      19-1) "investment gold" means gold, in respect of which there is a certificate or other document, issued by a certifying body or a testing laboratory, accredited in the manner established by the legislation of the Republic of Kazakhstan, confirming conformity of the gold with national or international quality standards, in accordance with the following requirements:
      For gold coins:
      Gold coins do not possess numismatic value if;
      the purity of gold coins shall be equal to or exceed 900 parts per 1000 fineness (which is equal to 900 standards, 900 thousandths, 90.0 % or 21.6 carats);
      However gold coins possess numismatic value if they comply with one of the following conditions:
      minted before 1800;
      minted using technology permitting the attainment of a mirror surface of "proof" quality;
      no more than 1000 specimens were made;
      its market price exceeds the cost of the gold, contained in the coin, by more than 80%;
      The market price of a gold coin is determined by multiplying the morning fixing (price quotation) of gold, which is established by the London Bullion Market Association on the date of realization of the gold coin by the market exchange rate, established on the indicated date;
      for other gold:
      this gold is made in the form of a bar and (or) plate;
      the purity of such gold is equal or exceeds 995 parts per 1000 ligature mass (which equals 995 standard, 995 thousands, 99.5 % or 23.88 carats);
      20) "engineering services" means engineering and consulting services, works of research, design, calculation and analytical nature, preparation of technical and economic studies of projects, elaboration of recommendations in the sphere of organization of production and management, output realization;
      20-1) "Islamic securities" means Islamic lease certificates and Islamic participation certificates;
      21) "contract activity" means activity of a subsoil user, conducted in accordance with the regulations of the contract for subsoil use;
      22) "non-contract activity" means any other activity of a subsoil user, which is not directly provided for by the contract for subsoil use;
      23) "consulting services" means services for providing clarifications, recommendations, advice and other forms of consultations, including determination and (or) assessment of problems and (or) capabilities of a person, in order to resolve administrative, economic, financial and investment issues, including issues of strategic planning, organization and implementation of commercial activity and staff management;
      24) "charitable help" means property, provided free of charge:
      to individuals with the goal of providing social support;
      to non-commercial organizations with the goal of supporting their authorized activities;
      to organizations, working in the social sphere with the goal of assisting them to realize thes of activity, specified in paragraph 2 of Article 135 of this Code;
      to organizations, working in the social sphere, which meet the requirements, specified in paragraph 3 of Article 135 of this Code;
      25) "stake" means a shared participation of an individual and (or) a legal entity in joint activity, in the authorized capital of a legal entity, except for joint-stock companies and mutual investment funds;
      26) "employee" means an individual standing in an employment relationship with an employer and who works directly in accordance with a labor agreement (contract); a state employee; a member of the Board of Directors of a joint-stock company, except for state employees; a foreigner or a stateless person, employed under a nonresident contract for work, and whose activity does not constitute a permanent establishment within the meaning of paragraph 7 of Article 191 of this Code, (relating to a resident or nonresident, working in the Republic of Kazakhstan through a permanent establishment);
      27) "marketing services" means services, connected with research, analysis, planning and forecasting in the sphere of manufacturing and circulation of goods, works, services in order to define measures for the creation of the best conditions for manufacturing and circulation of goods, works, services, including the characteristics of the goods, works, services and development of the pricing and advertisement strategies;
      28) excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012);
      29) "realization" means the shipment and (or) transfer of goods or other property, carrying out of works, provision of services with the aim of selling them, exchange, free transfer, and also the transfer of pledged goods to the pledgee;
      30) "royalty" means a payment for:
      the right of subsurface use in production and processing of manmade formations;
      the use or the right to use copyrights, software, patents, software, drawings and models, trademark and other similars of rights; the use or the right to use industrial equipment, including ships and aircrafts, rented under the contract of a bareboat charter or a demise charter, and commercial, or scientific research equipment; the use of know-how; the use or the right to use movies, video films, audio recordings, or other recording devices;
      31) "tax agent" means an individual entrepreneur, a private notary, a private officer of the court, a lawyer, a legal entity, including a nonresident legal entity who is obliged by this Code to calculate, withhold and remit taxes, withheld at the source of payment;
      32) "tax debt" means the sum of arrears, as well as the unpaid penalties and fines. A tax debt shall not include fines, reflected in the notice of the results of tax audit, and also the amount of penalties, which are reflected in any resolution imposing an administrative penalty which is being appealed in the manner specified by the legislation of the Republic of Kazakhstan;
      33) "tax regime" means a set of regulations of the tax legislation of the Republic of Kazakhstan, used by a taxpayer for calculation of all tax obligations relating to tax payment and other obligatory payments into the budget, provided for by this Code;
      34) "taxes" means the obligatory money payments into the budget, unilaterally established by legislation, except for cases, provided for by this Code, which have a certain value and which have an irrecoverable and non-reciprocal nature;
      35) "taxpayer" means a person, who pays taxes and other mandatory payments into the budget;
      36) "personal account of a taxpayer (tax agent)" means a document, which may be in an electronic form, for recording calculated, charged (reduced), transferred and paid (taking into account the credited and returned) amounts of taxes and other obligatory payments into the budget, obligatory pension contributions, social allowances, and amounts of fines and penalties;
      37) "electronic document of a taxpayer" means an electronic document given in a specified electronic format, certified by an electronic digital signature of a taxpayer after its receipt and confirmation of its authenticity;
      38) "electronic digital signature of a taxpayer" means a range of digital electronic symbols, created by means of an electronic digital signature and confirming the electronic document’s authenticity, that it is owned by a taxpayer and the invariability of its content;
      39) "remunerations" means all payments:
      connected with credit (loan, micro-credit), except for the amount of credit (a loan, a micro-credit) received (given), commissions for transfer of money by banks and other payments to a person, who does not act as lender to the borrower and is not a connected party;
      Note of the RCLI!
      Paragraph shall be enforced from 01.07.2011 and shall operate up to 01.01.2018.
      connected with a credit (a loan), the right to claim which has been ceded by the bank to a subsidiary which is purchasing doubtful and non-performing assets of the parent bank, except for the amount of credit (loan, a micro-credit) received (given), commissions for transfer of money by banks and other payments to a person, who does not act as lender to the borrower and is not a connected party;
      Note of the RCLI!
      Paragraph shall be enforced from 01.07.2011 and shall operate up to 01.01.2018.
      connected with credit (a loan), the right to claim which has been ceded by the bank to an organization, specializing in the improvement of the quality of loan portfolios of the second-tier banks, and one hundred percent of voting shares which belongs to the National Bank of the Republic of Kazakhstan, except for the received (given) amount of a credit (a loan), commissions for money transfer by banks and other payments to a person, who is not acting as lender to the borrower and is not a connected party;
      related to the transfer of property to a financial lease, except for the price, for which such property was received (given) and payments to a person who is not acting as lessor to the lessee and is not a connected party;
      on investments (deposits), except for the investment amount (a deposit), and payments to a person, who is not acting as investor to the depositor and is not a connected party;
      related to an accumulative insurance contract, except for the amount of the insurance sum and payments to a person who is not acting as insurer to the insured and is not a connected party;
      on debt securities in the form of discount or coupon (taking into account the discount or bonus from the initial public offering price and (or) the cost of acquisition), and payments to a person, who is a holder of his debt securities, or a connected party to the person;
      under a bill of exchange, except for the amount specified in the bill, payments to a person, who is not acting as drawer of the bill of exchange and is not a connected party of the bill drawer;
      on repo agreements - in the form of the difference between the closing and the opening price of repo on Islamic lease certificates.
      For the purposes of this sub-paragraph, remunerations paid under a bank account agreement are also deemed to be remunerations;
      40) "derivative financial instrument" means an agreement, the value of which shall depend on the value ??(including fluctuations in value) of the underlying asset of the agreement, and providing for future calculations of the value. Derivative instruments shall include options, futures, forwards, swaps and other derivative financial instruments, including those which represent a combination of these derivative financial instruments.
      Underlying assets of derivative financial instruments may be goods, standardized consignments of goods, securities, currencies, indexes, interest rates and other assets, possessing a market value, a future event or a circumstance, or other derivative financial instruments;
      41) "person" means a physical entity (an "individual") and legal entity; an individual is a citizen of the Republic of Kazakhstan, a foreigner or a stateless person; a legal entity is an organization, created in accordance with the legislation of the Republic of Kazakhstan or a foreign state (a nonresident legal entity). For the purposes of this Code, an organization or other corporate institution, created in compliance with the legislation of a foreign state, shall be considered as an independent legal entity regardless of whether it has the status of a legal entity of the foreign country, where it was incorporated;
      41-1) "authorized legal entity" means a legal entity, which is appointed by the Government of the Republic of Kazakhstan, to realize a taxpayer’s (a tax agent’s) property within the limits determined by order;
      42) "authorized government bodies" means the state bodies of the Republic of Kazakhstan, except for the tax and local executive bodies, which are authorized by the Government of the Republic of Kazakhstan to perform calculation and (or) collection of other obligatory payments into the budget, and also, in compliance with this Code, to cooperate with tax bodies within the scope of their competence, as specified by the Laws of the Republic of Kazakhstan, the acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;
      43) "authorized body" means a state body, involved in the sphere of ensuring payment of taxes and other obligatory payments into the budget;
      44) "winnings" means anys of income in kind or in the form of money, received by a taxpayer from contests, competitions (Olympic games), festivals, lotteries, winnings, including winnings on deposits and debt securities, as well as income in the form of property profit or won through gambling and (or) betting;
      45) "electronic taxpayer" means a taxpayer who interacts with tax bodies in electronic form on the basis of an agreement concluded with the tax bodies on the use and recognition of the electronic signature during the exchange of electronic documents in the manner provided for by this Code,;
      46) "operator" means a legal entity, created or appointed in accordance with the legislation of the Republic of Kazakhstan by subsurface users, conducting subsoil use operations as a part of a general partnership (consortium) within the framework of a PSA (Production Sharing Agreement (contract);
      47) "import of goods" means the import of goods into the customs territory of the Customs Union, performed in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan, as well as the import of goods into the territory of the Republic of Kazakhstan from the territory of another member-state of the Customs Union.
      1-1. For the purposes of this Code, connected parties are those individuals and (or) legal entities having a relationship which has one or several of the following features:
      1) one person is recognized as an affiliated person of the other person in accordance with the legislation of the Republic of Kazakhstan;
      2) one person is a major participant of the other person;
      3) the persons are tied by a contract, under which one of them has the right to determine the decisions made by the other;
      4) one legal entity is under the control of a major participant or of an official of another legal entity;
      5) a major shareholder, a major participant or an official of one legal entity is a major shareholder, a major participant or an official of the other legal entity;
      6) both legal entities are under the control of a third party;
      7) a person together with his affiliated persons possesses, controls or disposes of 10 or more percent of participation shares of the legal entity or legal entities specified in sub-paragraphs 2) - 6) of this paragraph;
      8) an individual is an official of a legal entity specified in sub-paragraphs 2) - 7) of this paragraph, except for an independent director of a joint-stock company;
      9) an individual is a close relative ??(a brother, a sister, a parent, a son or a daughter of a husband (or wife)) of a major participant or an official of a legal entity.
      For the purposes of this paragraph, a major participant shall be understood to mean a participant, whose share in the property of a legal entity, except for joint-stock companies, equals 10 percent or more.
      Control of a legal entity means an ability to determine decisions made by a legal entity.
      Persons whose only connection was participation after January 1, 2009 of their national managing holding company in the share capital of a bank in the capacity of a major shareholder and (or) the participation of officials of the national managing holding company in the governing body of such bank are not connected parties;
      2. The meaning of other special concepts and terms of the tax legislation of the Republic of Kazakhstan is determined in the relevant Articles of this Code.
      3. When used in this Code, concepts used by the civil and other branches of the legislation of the Republic of Kazakhstan, shall have the meanings given to them by those branches unless otherwise provided for by this Code.
      Footnote. Article 12 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 19.03.2010 No. 258-IV (shall be enforced from 01.01.2009 and operates up to 01.01.2016); dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Chapter 2. RIGHTS AND RESPONSIBILITIES OF A TAX PAYER AND A TAX AGENT. REPRESENTATION IN THE TAX RELATIONS

Article 13. The rights of a taxpayer and a tax agent. The government’s role in taxation

      1. A taxpayer shall have the right:
      1) to receive information from the tax services bodies on current taxes and other obligatory payments into the budget, on amendments to the tax legislation of the Republic of Kazakhstan and on clarifications on the manner of completion of tax forms;
      2) to represent his interests in those relations, regulated by the tax legislation of the Republic of Kazakhstan, personally or through his representative or with participation of a tax consultant;
      3) to receive the results of a tax audit in those cases established by this Code;
      4) to receive free of charge from the tax bodies the standards of rendering the public services approved in the manner established by the legislation the Republic of Kazakhstan, copies of the established forms of tax declarations and (or) the software, necessary for submission of tax reports and declarations in an electronic format;
      5) on application to a tax body to receive a copy of a tax report which was earlier submitted by him/her;
      6) to provide clarifications to tax service authorities on calculation and payment of taxes and other mandatory payments into the budget based on the results of a tax audit;
      7) to receive an extract from his personal account showing the status of fulfillment of his tax obligations, and likewise his obligations to calculate, withhold and remit obligatory pension contributions, calculation and payment of social security contributions no later than two working days from the moment of receipt by the tax bodies of a tax application;
      8) On submission of a tax application to receive the following certificates, in the manner and within the timeframe, established by this Code:
      on absence of tax arrears, arrears of obligatory pension contributions and social security contributions;
      on absence (presence) of tax arrears, arrears of obligatory pension contributions and social security contributions;
      on the amounts of income, received by a nonresident from sources in the Republic of Kazakhstan, and on withheld (paid) taxes;
      9) to receive information on details necessary to complete a payment document in order to fulfill tax obligations on payment of taxes and other obligatory payments into the budget, as well as information on the manner of payment of taxes and other obligatory payments into the budget within one working day after making a request to the tax authority for this information;
      10) to appeal in accordance with the manner specified by this Code and other legislative acts of the Republic of Kazakhstan a notification of the results of a tax audit and (or) the decision of a higher body of the tax service on consideration of such an appeal, as well as actions (omissions) of officials of the tax service;
      11) to demand the observance of tax confidentiality;
      12) to receive free of charge public services, provided by tax bodies in accordance with this Code;
      13) to fix in writing questions raised by an official of the tax service during a tax audit, and to agree with him/her a document reflecting these issues;
      14) not to provide information and documents which are not related to the objects of taxation and (or) objects, related to taxation, except for information and documents, provision of which is directly provided for by the tax legislation of the Republic of Kazakhstan, the legislation of the Republic of Kazakhstan on transfer pricing, and the legislation of the Republic of Kazakhstan on state regulation of production and turnover of certains of excisable goods.
      2. A taxpayer has the right to participate electronically in the relationships, regulated by the tax legislation of the Republic of Kazakhstan in the manner specified by this Code.
      3. A taxpayer shall have other rights, provided for by the legislation of the Republic of Kazakhstan.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 263-IV (shall be enforced from 01.01.2010).

Article 14. The responsibilities of a taxpayer

      1. A taxpayer must:
      1) fulfill a tax obligation fully and promptly in accordance with this Code;
      2) fulfill legitimate requests of officials of a tax service on the elimination of revealed infringements of the tax legislation of the Republic of Kazakhstan, and likewise not impede the lawful activity of the execution of their duties;
      3) on being presented with an order, allow the officials of the tax service to inspect a property, which is a taxation object and (or) an object, related to taxation;
      4) provide information and documents, specified by the legislation of the Republic of Kazakhstan on transfer pricing;
      5) use cash register machines and observe the manner of their application, defined by this Code;
      6) submit a tax application to the tax authority confirming that documentary verification has been carried out in the following situations: in connection with the termination of working activity of an individual entrepreneur (except in those cases prescribed by Article 43 of this Code), practices of a private notary, a private officer of the court, a lawyer, a permanent establishment, nonresident legal entity, reorganization by means of subdivision and (or) liquidation of a legal entity;
      Note of the RCLI!
      Sub-paragraph 7) shall be enforced from 01.07.2011.
      7) notify tax bodies on forthcoming receipt of excisable goods (excluding automobiles), imported from the Customs Union member states in the manner, established by the Government of the Republic of Kazakhstan.
      2. A taxpayer shall fulfill other responsibilities, prescribed by this Code.
      Footnote. Article 14 as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2011); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 09.01.2012 No. 535-IV (the order of enforcement see Article 2).

Article 15. Rights and responsibilities of a tax agent

      1. A tax agent has the same rights and responsibilities as a taxpayer, unless otherwise provided by this Code;
      2. A tax agent must also:
      1) calculate taxes, withheld at the source of payment properly and in a timely manner in accordance with the Special part of this Code;
      2) withhold the appropriate taxes from a taxpayer and transfer them into the budget in the manner and the period provided for by this Code;
      3) maintain a record of the income, paid to taxpayers, as well as the amounts of taxes withheld and transferred to the budget, including a personal record for each taxpayer;
      4) provide the tax body in the place of registration with reporting materials in the manner provided for by this Code;
      3. A tax agent shall fulfill other responsibilities prescribed by this Code.

Article 16. Ensuring and protecting the rights of a taxpayer (a tax agent)

      1. A taxpayer’s (a tax agent’s) rights and legal interests are guaranteed.
      2. The protection of the rights and legitimate interests of a taxpayer (a tax agent) shall be fulfilled in the manner, specified by this Code and other legislative acts of the Republic of Kazakhstan.

Article 17. Representation in tax relations regulated by this Code

      1. A taxpayer (a tax agent) shall have the right to participate in the relationships, regulated by the tax legislation of the Republic of Kazakhstan through a lawful or authorized representative, unless otherwise provided for by this paragraph;
      This paragraph shall not be applied where a taxpayer, who has been relieved of the requirement to pay value-added tax in accordance with paragraph 4 of Article 571 of this Code, has presented a tax report for value-added tax in a period during which that taxpayer was not a value-added tax payer.
      2. A person who has been authorized to represent a taxpayer (a tax agent) in accordance with the Laws of the Republic of Kazakhstan shall be recognized as their legal representative.
      3. An individual or a legal entity who has been authorized by a taxpayer (a tax agent) to represent his/her interests in relations regulated by the tax legislation of the Republic of Kazakhstan, in dealings with tax authorities and other taxation bodies, shall be recognized as their authorized representative.
      An authorized representative of a taxpayer (a tax agent) which is an individual, including an individual entrepreneur, shall act on the basis of a notarized power of attorney or power of attorney, equivalent to a notarized power of attorney, given by this taxpayer (tax agent) in accordance with the civil legislation of the Republic of Kazakhstan, and which indicates a specific list of powers of the representative.
      An authorized representative of a taxpayer (tax agent) which is a legal entity or a legal entity of a structural subdivision, shall operate on the basis of the foundation documents of this taxpayer (tax agent), and (or) its power of attorney, given in accordance with the civil legislation of the Republic of Kazakhstan, and which indicates a specific list of powers of the representative.
      4. Personal participation of a taxpayer (a tax agent) in the relations, regulated by the tax legislation of the Republic of Kazakhstan, shall not deprive him/her of the right of having a representative, and in the same way the participation of a legal representative shall not deprive a taxpayer (a tax agent) of the right of personal participation in the mentioned relations.
      5. An action (omission) of a taxpayer’s (a tax agent’s) representative, committed in connection with participation of that taxpayer (tax agent) in the relationships regulated by the tax legislation of the Republic of Kazakhstan, shall be recognized as actions (omissions) of the taxpayer (tax agent) within the authority given to the mentioned representative on the basis of the documents, specified in paragraph 3 of this Article;
      Footnote. Article 17 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2).

Article 17-1. Participation in tax relations via an operator when conducting mining operations on the basis of a production sharing agreement (contract)

      1. Subsoil users, conducting mining operations as a part of a general partnership (consortium) under a production sharing agreement (contract), shall have the right to participate in relations, regulated by the tax legislation of the Republic of Kazakhstan, through an operator.
      2. The authority of an operator in relation to the relationships regulated by the tax legislation of the Republic of Kazakhstan, shall be determined in accordance with the production sharing agreement (contract) insofar as it does not contradict this Code.
      3. When fulfilling tax obligations in accordance with sub-paragraph 2) of paragraph 3 of Article 308-1 of this Code, an operator shall have all rights and responsibilities, prescribed by this Code for taxpayers (tax agents), and the requirements of tax administration, prescribed for tax payers (tax agents) by this Code, shall also be applied to the operator.
      4. The actions (omissions) of an operator, performed on behalf of and (or) at the instruction of subsoil users, in connection with the participation of these subsoil users in relationships regulated by the tax legislation of the Republic of Kazakhstan, shall be recognized as actions (omissions) of such subsurface users and of the operator, acting on behalf of and at the instruction of these subsoil users.
      Footnote. The Chapter 2 is supplemented by Article 17-1 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2).

Chapter 3. TAX SERVICE BODIES. CUSTOMS BODIES. INTERACTION OF THE TAX SERVICE BODIES WITH OTHER STATE BODIES.

Article 18. The objectives and structure of the tax service bodies

      1. The objectives of tax service bodies are:
      1) Ensuring the fullness and timeliness of transfers of taxes and other obligatory payments into the budget;
      2) Ensuring the fullness and timeliness of calculation, withholding and transfer of obligatory pension contributions to pension funds (hereinafter - obligatory pension contributions), calculations and payments of social contributions to the State Social Insurance Fund (hereinafter - social contributions);
      3) participation in implementation of the tax policy of the Republic of Kazakhstan;
      4) Ensuring, within the limits of its competence, the economic security of the Republic of Kazakhstan;
      5) Ensuring the observance of the tax laws of the Republic of Kazakhstan.
      2. The tax service bodies consist of an authorized body and tax bodies which have codes established by the Government of the Republic of Kazakhstan.
      3. The tax service bodies include territorial subdivisions of the authorized body for each region, for the cities of Almaty and Astana, for districts, cities, city districts, and inter-regional territorial subdivisions of the authorized body. If special economic zones are created, tax bodies may be formed within these zones.
      4. The tax service bodies report directly to the vertically corresponding higher body of the tax service and are not related to the local executive bodies.
      5. The authorized body manages the tax bodies.
      6. Tax service bodies have a symbol. The description of the symbol of the tax bodies and the procedure for its use shall be approved by the authorized body.
      Footnote. Article 18 as amended by the Laws of Republic of Kazakhstan dated 06.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 19. Rights of the tax service bodies

      1. Tax service bodies have the right:
      1) to develop and approve regulations, provided for by this Code, within the limits of their competence;
      2) to perform tax audits;
      3) to perform international cooperation on taxation issues;
      4) to require a taxpayer (a tax agent, an operator) to grant the right to access the data of software, designed for automatic accounting and tax reporting, and (or) an information system, containing data on primary accounting documents, ledgers, information on objects of taxation, and (or) objects, related to taxation, where such software and (or) information system is used by a taxpayer (tax agent, operator), except for the right to access the data of the software and (or) the information system of banks and other organizations, performing certains of banking operations, containing the data of bank accounts and their clients, which form bank secrets in accordance with the legislation of the Republic of Kazakhstan;
      5) to require a taxpayer (a tax agent, an operator) to present documents, confirming the accuracy of calculation and timeliness of payment (withholding, transferring) of taxes and other obligatory payments into the budget, the fullness and timeliness of calculation, withholding and transfer of obligatory pension contributions, and the calculation and payment of social contributions, written clarifications relating to taxation forms completed by a taxpayer (a tax agent, an operator), as well as the financial reporting of the taxpayer (tax agent), including the consolidated financial reports of a resident (a tax agent), including the financial reports of his affiliated organizations outside the Republic of Kazakhstan, with an audit report in cases where this person is obliged to perform an audit in compliance with the legislative acts of the Republic of Kazakhstan;
      6) during a tax audit being carried out in the manner specified by the Code of the Republic of Kazakhstan on administrative offences, to confiscate from a taxpayer (a tax agent, an operator) documents, evidencing the committed administrative offence;
      7) on receipt of an order to do so to examine property, which is a taxation object and (or) an object, related to taxation regardless of its location, and to conduct an inventory of the property of a taxpayer (a tax agent, an operator) (except for residential premises);.
      8) to receive the data prescribed in sub-paragraphs 1) and 4) of Article 581 of this Code from banks and organizations carrying out certain kinds of banking operations;
      9) to receive from banks and organizations, carrying out certain kinds of banking operations, information on the existence and numbers of bank accounts, on the balances and cash flow in these accounts in accordance with the requirements for the disclosure of information constituting commercial, banking and other secrets in respect of persons, mentioned in sub-paragraph 12) of Article 581 of this Code as are established by the laws of the Republic Kazakhstan;
      10) to use indirect methods to determine taxation objects and (or) objects, related to taxation, in the manner provided for by this Code;
      11) to engage specialists to conduct tax audits;
      12) to submit lawsuits in the courts in accordance with the laws of the Republic of Kazakhstan, including in respect of liquidation of a legal entity on the grounds specified in sub-paragraphs 1) and 2) of paragraph 2 of Article 49 of the Civil Code of the Republic of Kazakhstan.
      2. Tax service bodies have the right to implement the tasks, assigned by the legislative acts of the Republic of Kazakhstan, by electronic means in the manner provided for by this Code.
      3. Tax service bodies have other rights, prescribed by the legislation of the Republic of Kazakhstan.
      Footnote. Article 19 as amended by the Laws of the Republic of Kazakhstan dated 06.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 25.03.2011 No. 421-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 20. Responsibilities of the tax service bodies

      1. Tax service bodies are obliged to:
      1) observe the rights of the taxpayer (a tax agent);
      2) protect the interests of the state;
      3) supervise the fulfillment by a taxpayer (operator) of his tax obligation, and of a tax agent’s (operator’s) obligation to calculate, withhold and transfer taxes in the manner, provided for by this Code, as well as to monitor the fullness of calculation and timeliness of payments of social contributions, and the timeliness of calculation, withholding and remittance of obligatory pension contributions;
      4) keep records of taxpayers, taxation objects and (or) objects, related to taxation, of calculated, charged and paid taxes and other obligatory payments into the budget, of calculated, withheld and transferred mandatory pension contributions, and of calculated and paid social contributions;
      5) within the limits of its competence, clarify and give comments on the inception, fulfillment and cessation of tax liabilities;
      6) provide a taxpayer (a tax agent) with information on current taxes and other obligatory payments into the budget, on changes to the tax legislation of the Republic of Kazakhstan, to explain the procedure for filling in tax forms;
      7) provide to a taxpayer (a tax agent) free of charge the standards of rendering the public services approved in the manner established by the legislation the Republic of Kazakhstan, copies of the established forms of tax declarations and (or) the software, necessary for submission of tax reports and declarations in an electronic format;
      8) conduct tax audits in accordance with instructions;
      9) within the limits of its competence, to perform set-off and (or) repayment of overpaid taxes, other obligatory payments into the budget and fines paid into the budget, excess value-added tax paid and repayment of penalties, in the manner and in the timeframe established by this Code;
      10) observe tax secrecy in accordance with the provisions of this Code;
      11) deliver to a taxpayer (a tax agent, an operator) a notification of fulfillment of his tax liabilities and (or) a copy of the notification in cases, established by this Code, of his obligation to withhold and remit obligatory pension contributions or obligatory social security contributions within the timeframe and in the cases prescribed by this Code;
      12) upon a tax application of a taxpayer (a tax agent, an operator) to present the followings of certificates in the time period and the manner, established by this Code:
      on absence of tax arrears, arrears of obligatory pension contributions and social security contributions;
      on absence (presence) of tax arrears, arrears of obligatory pension contributions and social security contributions;
      on the amounts of income, received by a nonresident from sources in the Republic of Kazakhstan, and on withheld (paid) taxes;
      13) receive tax reports and tax declarations in the manner established by this Code;
      14) require a taxpayer (a tax agent, an operator) to eliminate revealed infringements of the tax legislation of the Republic of Kazakhstan and to supervise the carrying out of these requirements within the limits of their jurisdiction;
      15) no later than two working days from the moment of receipt by the tax bodies of a tax application from a taxpayer (tax agent) issue an extract from his personal record showing the status of fulfillment of his tax obligations, and likewise his obligations to calculate, withhold and remit obligatory pension contributions, calculation and payment of social security contributions;
      16) within the limits of their competence and within one working day from the date of appeal to the tax body for specified information, to provide a taxpayer (a tax agent) with information on the details required for filling in the payment document on payment of taxes and other obligatory payments to the budget, on fines and penalties, payable into the budget, as well as information on the procedure for payment of taxes and other obligatory payments to the budget, and of penalties and fines, payable into the budget, and on social contributions and the remittance of obligatory pension contributions;
      17) keep documents or copies of documents, evidencing payment of taxes and other obligatory payments to the budget for a period of five years;
      18) grant an authorized state body charged with responsibility for financial monitoring access to the information system of the tax service, in accordance with the legislation of the Republic of Kazakhstan;
      19) grant an electronic taxpayer access to view his/her personal account;
      20) at the request of a taxpayer and in the manner prescribed by this Code, verify and correct errors in his personal record of calculations of tax liabilities, of obligatory pension contributions, and of social security contributions, and on the request of a tax agent to verify and correct errors in the record of fulfillment of the obligation to calculate and remit taxes;
      21) provide public services in accordance with the standards and regulations on the provision of public services, prescribed by the legislation of the Republic of Kazakhstan;
      22) publish in the media, in the manner and in the cases prescribed by this Code, lists of taxpayers (tax agents) who have tax arrears, as well as dormant legal entities and of taxpayers, recognized as false enterprises on the basis of an enforced sentence or resolution of a court;
      23) monitor compliance with the manner of accounting, storage, valuation, and further use and realization of property, converted into state property, and monitor the fullness and timeliness of its transfer to an authorized state body in accordance with the legislation of the Republic of Kazakhstan, and fullness and timeliness of money transfer to the budget in case of realization of the property;
      24) monitor the activity of the authorized state bodies and local executive bodies with regards to the accuracy of calculation, fullness of collection and timeliness of transfer of taxes and other obligatory payments into the budget;
      25) use methods aimed at ensuring the fulfillment of tax liabilities and to recover tax arrears from a taxpayer (a tax agent, an operator) in a compulsory manner in accordance with this Code;
      26) consider complaints made by a taxpayer (a tax agent, an operator) on being notified of the results of tax audit and (or) on receipt of the decision of a higher body of the tax services, issued on reviewing a complaint made in relation to a notification, as well in respect of the actions (omissions) of officials of tax bodies in the manner and time frame, established by this Code;
      27) to enhance administrative responsibility in the manner established by the Code of the Republic of Kazakhstan on administrative offences;
      2. If during a tax audit facts are revealed evidencing intentional evasion of taxes and other obligatory payments into the budget, or of evidence of intentional, false bankruptcy, indicating a crime, the tax service bodies shall submit to the appropriate law enforcement bodies materials, relating to their investigative jurisdiction for the purposes of decision-making in accordance with the Laws of the Republic of Kazakhstan.
      3. Tax service bodies also fulfill other responsibilities prescribed by the tax legislation of the Republic of Kazakhstan.
      Footnote. Article 20 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010);dated 02.04.2010 No. 263-IV (shall be enforced from 10.10.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2).

Article 21. Conflict of interests

      An official of the tax service bodies is prohibited from performing his/her duties in respect of a taxpayer (a tax agent), who is a close relative (parents, children, adoptive parents, adopted children, full or half brothers and sisters, grandparents, grandchildren), husband (wife) or relation ??(brothers, sisters, parents and children of spouses) of the official, and if there is a direct or indirect financial interest between the two parties.

Article 22. Powers of customs bodies to collect taxes

      Customs bodies perform the collection of taxes, payable in connection with the transit of goods through the customs border of the Customs Union in accordance with this Code, the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan.
      Footnote. Article 22 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2).

Article 23. Powers of local executive bodies

      1. Akims of settlements, auls (villages), aul (rural) districts (hereinafter - the Akims) organize the collection of taxes on property, on means of transport, and land tax which are paid by a taxpayer (individual).
      2. Collection of the taxes, mentioned in paragraph 1 of this Article, shall be performed on the basis of receipts that are documents of strict reporting. The form of the receipts shall be specified by the Government of the Republic of Kazakhstan.
      3. During the tax collection, mentioned in paragraph 1 of this Article, the Akims shall:
      1) deliver a notification of the sum of the tax to a taxpayer (individual) no later than five working days from the moment of receipt of this notification from the tax bodies;
      2) on payment by a taxpayer (individual) in cash, issue a receipt, confirming the fact of a tax payment;
      3) transfer tax amounts to a bank or an organization, performing certains of banking operations, on a daily basis no later than the next operational day after the money is received for its further transfer into the budget. If the daily amount of received money is less than the tenfold monthly calculation index, established by the Law on the Republican budget and operating from January 1 of the relevant financial year, and if there is no bank or organization, performing certains of banking operations in the closest settlement, the money transfer shall be performed every three operating days;
      4) ensure the accuracy of completion and safety of the receipts;
      5) provide the tax body with reports on the use of receipts and transfer of tax amounts to a bank or an organization, performing certains of banking operations, in the manner and the timeframe, established by the Government of the Republic of Kazakhstan.
      Footnote. Article 23 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010), dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012).

Article 24. Cooperation of tax service bodies with the authorized state and local executive bodies

      1. Tax service bodies shall cooperate with the authorized state and local executive bodies, develop and implement joint control measures in accordance with the legislation of the Republic of Kazakhstan, and ensure a mutual exchange of information.
      2. The authorized government and local executive bodies are obliged to assist tax service bodies in performing their tax supervisory duties.
      3. Tax service and customs bodies shall perform their tasks for implementation of tax audits in cooperation with each other.
      4. Tax service bodies and local executive bodies shall cooperate with each other to collect taxes in accordance with Article 23 of this Code.
      5. Powers of the authorized state and local executive bodies for collection of other mandatory payments into the budget are determined by the Special part of this Code.
      6. Tax service bodies have the right to cooperate with the authorized state and local executive bodies by electronic means in the manner established by this Code.

Article 25. Financial support, legal and social protection of tax service officials

      1. A tax service official is protected by the law during fulfillment of his/her official duties.
      2. Non-compliance with lawful requests of a tax service official, insulting, threatening or violent behavior towards, or intrusion into the life, health or property of a tax service official or members of his/her family in connection with his/her professional activities, and other actions, preventing a tax service official from carrying out his/her duties shall have the consequences prescribed by the Laws of the Republic of Kazakhstan.
      3. In cases of harm of moderate severity to the health of a tax service official being inflicted in connection with the fulfillment of his/her duties, he/she shall receive a single lump-sum compensation payment in the amount of five monthly salary payments from the national budget.
      4. In cases of severe harm to the health of a tax service official being inflicted in connection with the fulfillment of his/her duties, which excludes further opportunity to perform professional duties, he/she shall receive a single lump-sum compensation payment in an amount equal to five times his annual salary from the national budget, as well as the difference between the size of his salary and pension (for life).
      5. In the case of the death of a tax service official during the fulfillment of his/her duties, the family of the deceased or his dependents (heirs) shall:
      1) receive a single lump-sum benefit in an amount equal to ten times the deceased’s annual salary at the time of death from the national budget;
      2) receive a state social survivor's pension in the amount and the manner, established by the legislation of the Republic of Kazakhstan on state social benefits for disability, survivor’s pension and benefits for old age in the Republic of Kazakhstan.
      6. Damage to health and property of a tax service official, and damage to health and property of family members or close relatives of a tax service official in connection with the fulfillment of his/her duty shall be compensated in accordance with the legislation of the Republic of Kazakhstan.

SECTION 2. TAX OBLIGATION

Chapter 4. GENERAL PROVISIONS

Article 26. The tax obligation

      1. The tax obligation is a liability of a taxpayer to the Government, arising in accordance with the tax legislation of the Republic of the Kazakhstan, under which a taxpayer is obliged to be registered with a tax body, to determine taxation objects and (or) objects, related to taxation, to calculate and pay taxes and other obligatory payments into the budget, and likewise advances and other payments on them, to complete tax forms, to submit tax forms, except for tax registers, promptly to a tax body.
      2. The state, represented by a tax service body, has the right to request a taxpayer (a tax agent) to perform his/her tax obligation fully and in cases of non-compliance or deficient compliance to apply measures to ensure compliance in the manner, provided for by this Code.
      Footnote. Article 26 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.07.2011).

Article 27. Taxation object and (or) an object related to taxation

      A taxation object and (or) an object related to taxation may be property or an action giving rise to a taxpayer having tax liabilities.

Article 28. Tax base

      Tax base is the cost, physical or other characteristic of a taxation object, on the basis of which the amount of tax and other obligatory payments, payable into the budget, is determined.

Article 29. Taxation rate

      1. The taxation rate is the amount of the tax liability resulting from a calculation of a tax and other obligatory payments into the budget per unit of a taxation object or tax base measurement.
      2. The taxation rate is expressed in percent or in the absolute amount of a taxation object or a tax base measurement.

Article 30. Taxation period

      The taxation period is a period of time, established in respect of certains of taxes and other obligatory payments into the budget, at the end of which a tax object and a tax base shall be determined, and the amount of tax and other obligatory payments into the budget, are calculated.

Chapter 5. FULFILLMENT OF THE TAX OBLIGATION

Article 31. Fulfillment of the tax obligation

      1. Fulfillment of the tax obligation shall be performed by a taxpayer himself, unless otherwise provided by this Code.
      2. A taxpayer shall perform the following actions to fulfill his tax liability:
      1) register with a tax body;
      2) keep records on taxation objects and (or) objects, related to taxation;
      3) calculate, on the basis of his taxation objects and (or) objects, related to taxation, the tax base and taxation rate, amounts of taxes and other obligatory payments, payable to the budget, and likewise advances and current payments on them in accordance with the Special part of this Code;
      4) complete and submit tax forms (except for tax registers) to the tax service bodies in the established manner;
      5) pay the calculated and charged tax amounts and other obligatory payments into the budget, advances and current payments on taxes and other obligatory payments into the budget in accordance with the Special part of this Code.
      3. The tax obligation must be fulfilled by a taxpayer in the manner and in the timescale, provided by the tax legislation of the Republic of Kazakhstan.
      4. A taxpayer shall have the right to fulfill the tax obligation ahead of time.
      5. The tax obligation of a taxpayer on payment of taxes and other obligatory payments into the budget and obligation to pay fines and penalties in non-cash form shall be recognized as fulfilled from the date of receipt of confirmation of receipt of the amount of taxes and other obligatory payments into the budget from a bank or an organization, performing certains of banking operation or from the date of payment through cash machines or other electronic devices, and in the form of cash - from the day of payment of the mentioned amounts of taxes by the taxpayer to a bank or an organization, performing certains of banking operations, to an authorized government body or a local executive body.
      6. When payment of taxes and/or other obligatory payments into the budget, social security contributions, obligatory pension contributions is made by an authorized representative of a taxpayer in the cases, prescribed by this Code, a money sender shall state the name, last name, patronymic (if there is one) or the name of the taxpayer and his/her identity number.
      7. The tax liability of a taxpayer to pay taxes, which is carried out by a tax agent, shall be recognized as fulfilled from the date of withholding of the tax.
      8. The tax liability to pay taxes, fees, and the obligation to pay fines may be fulfilled through conducting set-offs in the manner, established by Article 599 of this Code.
      9. The tax liability to pay taxes, other obligatory payments into the budget, and the obligation to pay fines and penalties shall be performed in the national currency, except in those cases, provided for by this Code and by legislative acts of the Republic of Kazakhstan regulating the activities of joint-stock companies, and where the legislation of the Republic of Kazakhstan and the provisions of contracts on subsoil use envisage payment in kind or payment in foreign currency.
      Footnote. Article 31 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.07.2011).

Article 32. Specifics of calculation of taxes and other obligatory payments into the budget when fulfilling the tax obligation

      1. The calculation of tax to be withheld at the source of payment, shall be performed by a tax agent.
      2. In the cases provided for by the Special part of this Code, the obligation to calculate the amount of certains of taxes and other obligatory payments into the budget may be entrusted to a tax body and the authorized state bodies.

Article 33. Periods for fulfillment of the tax obligation

      The period for fulfillment of a tax obligation shall be established by this Code. The period, established by this Code, begins on the day after an actual event or a legal action, which determines the beginning of the period for fulfilling the tax obligation. The period expires at the end of the last day of the period, established by this Code. If the last day of the period falls on a non-working day, the period shall expire at the end of the next working day.

Article 34. The order of repayment of tax arrears

      Repayment of tax arrears shall be performed in the following order:
      1) charged fines;
      2) arrears;
      3) penalties.
      Footnote. Article 34 as amended by the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012).

Article 35. Fulfillment of tax obligation when transferring a property to an entrusted administration

      1. The receivable (received) income and payable (paid) expenses and property, obtained and (or) received by an entrusted administration in the process of fulfillment of its entrusted obligations constitute income, expenses and property of the founder of that entrusted administration where there is an agreement on entrusted administration of property or of the beneficiary in other cases of entrusted administration.
      Income of an entrusted administrator in the form of remuneration is an expense of a founder of the entrusted administration where there is an agreement on entrusted administration of property or of the beneficiary in other cases of entrusted administration.
      When the fulfillment of the tax obligation is entrusted to an entrusted administration, the positive disparity between the income of a founder of the entrusted administration or its beneficiary and the expenses, provided for by this paragraph, minus the amount of losses of that founder or beneficiary carried forward from previous tax periods, and minus the amount of the tax obligation, fulfillment of which is entrusted to the entrusted administrator, is the net income from the entrusted administration of the founder of the entrusted administration under the agreement on entrusted administration of property or from the beneficiary in the other cases of entrusted administration.
      Excess of expenses, provided for by this paragraph, over the income of a founder of the entrusted administration under the agreement on entrusted administration of property or beneficiary in the other cases of entrusted administration are losses from the entrusted administration of the founder of the entrusted administration under the agreement on entrusted administration of property or beneficiary in the other cases of entrusted administration.
      2. The income of an entrusted administrator from an entrusted administration is the remuneration provided for by the Act on entrusted administration of property. Expenses, related to the fulfillment of an entrusted administration shall be recognized as expenses of the entrusted administrator, if the mentioned Act does not provide for reimbursement of the expenses of the entrusted administration at the expense of a founder of the entrusted administration under the agreement on entrusted administration of property or beneficiary in other cases of entrusted administration.
      3. Fulfillment of the tax obligation of a founder of an entrusted administration under an agreement on entrusted administration of property or beneficiary in other cases of entrusted administration:
      1) In relation to taxes and other obligatory payments into the budget, except for value-added tax, may be entrusted to an entrusted administrator by a founder of an entrusted administration on the basis of the Act on entrusted administration of property, except in those cases, provided for by paragraph 4 of this Article;
      2) In relation to value-added tax is entrusted to an entrusted administrator in the cases and the manner, provided for by part 8 and Articles 568-571 of this Code.
      If the fulfillment of the tax obligation relating to calculation, payment or withholding of taxes, or to other obligatory payments into the budget is entrusted to an entrusted administrator, this entrusted administrator must be registered with a tax body in the manner, established by Article 81 of this Code.
      In such cases, the entrusted administrator shall fulfill the tax obligations relating to calculation, payment or withholding of taxes, and to other obligatory payments under the agreement on entrusted administration from the date of:
      State registration of the entrusted administration, if there is a necessity for registration of this right in accordance with the legislation of the Republic of Kazakhstan; or
      Conclusion of the agreement on the entrusted administration, if there is no necessity for registration of this right in accordance with the legislation of the Republic of Kazakhstan.
      4. The founder of an entrusted administration under an agreement on entrusted administration of property or the beneficiary in other cases of entrusted administration shall personally fulfill the tax obligation, except for the tax obligation in respect of value-added tax, arising in connection with the transfer of property to the entrusted administration, in the manner, established by this Code in any of the following cases:
      1) when the fulfillment of the tax obligation is not entrusted to an entrusted administrator;
      2) if, on the day of establishment of the entrusted administration and during the entrusted administration, the entrusted administrator is related to the persons, applying the provisions of Article 134,135,135-1,181,182 and (or) Chapter 63 of this Code;
      5. An entrusted administrator in order to fulfill the tax obligation on transfer of property to an entrusted administration shall be obliged to keep separate records in accordance with Article 58 of this Code.
      6. The transfer of property to an entrusted administrator by a founder of an entrusted administration under an agreement on the entrusted administration of property or beneficiary in other cases of entrusted administration shall not be recognized as realization of this property or as the income of the entrusted administrator.
      7. Return of property by an entrusted administrator upon termination of the document which serves as the basis for an entrusted administration shall not be recognized as realization of this property and shall not be recognized as an income (loss) of a founder of the entrusted administration under the agreement on the entrusted administration of property, or of a beneficiary in other cases of the entrusted administration.
      8. If the fulfillment of the tax obligation relating to calculation, payment or withholding of the tax amounts and other obligatory payments into the budget, and completion and submission of tax forms is entrusted to an entrusted administrator on behalf of a founder of an entrusted administration under an agreement on the entrusted administration of property or of a beneficiary in other cases of the entrusted administration, the fulfillment of this tax obligation shall be performed on behalf of the person, who is the entrusted administrator, in accordance with the rates and the order, established by the Special part of this Code for that group of persons which includes the entrusted administrator.
      In doing so, the entrusted administrator shall fully complete and submit the tax forms relating to its activities, including those performed in the interests of a founder of the entrusted administration of property and (or) beneficiary, unless otherwise prescribed by Articles 58 and 64 of this Code.
      Footnote. Article 15 as amended by the Laws of the Republic of Kazakhstan dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 36. Specifics of fulfilling the tax obligation when transferring property to an entrusted administration

      1. On transfer by an individual of property to an entrusted administration, which is entrusted to present the declaration prescribed by paragraph 2 of Article 185 of this Code, the tax obligation to present and file in this declaration shall be performed by that individual.
      2. Legal entities, an individual entrepreneur in relation to income received from a bank’s confidential operations and individuals and legal entities when transferring property to an entrusted administration of an entrusted administrator, which is a nonresident, must fulfill their tax obligations personally.
      3. The tax obligation of an individual, who is not an individual entrepreneur, on the income from confidential operations, performed by a bank, which is a tax agent, shall be performed by this bank as part of its obligations as a tax agent.
      4. A founder of an entrusted administration has the right not to register as an individual entrepreneur, if under an agreement on entrusted administration of property and in other cases of entrusted administration, provided for by the Laws of the Republic of Kazakhstan, the fulfillment of the tax obligations of the founder of the entrusted administration is fully entrusted to an entrusted administrator.
      Footnote. Article 36 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

Article 37. Fulfillment of the tax obligation by a legal entity, which is under liquidation, and in termination of a structural unit’s activity, a permanent establishment of a nonresident legal entity in the Republic of Kazakhstan

      1. A resident legal entity shall inform in a written form a tax body at its location on a decision on liquidation of the legal entity within three working days from the date of this decision-making.
      2. Within three working days after the approval of the interim liquidation balance, the legal entity, undergoing liquidation, shall simultaneously submit the following documents to a tax body at its location:
      1) a tax statement on the documentary checking;
      2) a liquidation tax reporting;
      3) a certificate of registration for the value added tax, or an clarification in a paper format in case of its loss or damage;
      4) a tax application for the removal from the register for the value-added tax.
      The documents listed in sub-paragraphs 3) and 4) of the first part of this paragraph shall be submitted in the case if a legal entity, undergoing liquidation, is a payer of the value-added tax.
      3. The liquidation tax application shall be prepared on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, paid by the legal entity, undergoing liquidation and (or) by the legal entity as a tax agent, within the period from the beginning of the tax period, when the tax declaration of the documentary checking was presented, up to the date of submission of this document.
      If the deadline of submission of the next tax reporting comes after the submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than on the date of the liquidation tax reporting submission.
      4. A legal entity, undergoing liquidation, shall pay taxes, other obligatory payments to the budget, social contributions, transfer obligatory pension contributions, reflected in the tax reporting no later than ten calendar days after submission of the liquidation tax reporting to a tax body.
      If the deadline for the tax payment, other obligatory payments to the budget, social contributions, obligatory pension contributions, reflected in the tax reporting, submitted before the liquidation tax reporting, comes after the expiry of the period, mentioned in the first part of this paragraph, the payment (transfer) shall be performed no later than ten calendar days after the submission of the liquidation tax reporting to a tax body.
      5. Documentary checking shall be started by tax bodies no later than twenty working days after the receipt of a legal entity’s tax application.
      6. Tax arrears of a legal entity, undergoing liquidation, appearing on the grounds, mentioned in paragraphs 4 and 11 of this Article, shall be repaid at the expense of its money, including the money, received after realization of its property, in the order of priority, established by the legislative acts of the Republic of Kazakhstan. At that, the tax arrears of structural units of the legal entity, undergoing liquidation, such as permanent establishments, structural units of the nonresident legal entity in case of joint fulfillment of the tax obligations by the group of permanent establishments, affiliates, representative offices, shall be repaid through the permanent establishment, structural unit which terminates its activity.
      7. If the property of a legal entity, undergoing liquidation, is not enough to repay fully the tax arrears, the rest of the arrears shall be covered by founders (participants) of the legal entity, undergoing liquidation in the cases, provided by the legislation of the Republic of Kazakhstan.
      8. If a legal entity, undergoing liquidation, has overpaid amounts of taxes, fees and fines, these amounts of money shall be set off to repay tax arrears of the legal entity, undergoing liquidation in accordance with Article 599 of this Code.
      If a legal entity, undergoing liquidation, has erroneously paid amounts of taxes and other obligatory payments to the budget, the mentioned amounts shall be set off in the order, established by Article 601 of this Code.
      9. If a legal entity, undergoing liquidation, has an excess in amount of the value-added tax, which shall be set off over the amount of the charged tax, the indicated excess is reimbursed to the legal entity in the order, established by Articles 273, 600 and 603 of this Code.
      10. In absence of arrears of a legal entity, undergoing liquidation:
      1) the erroneously paid taxes and other obligatory payments to the budget shall be returned to this legal entity in the order, provided for by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines shall be refunded to this legal entity in the order, established by Article 602 of this Code;
      3) the paid amounts of other obligatory payments to the budget shall be refunded to this legal entity in the order, established by Article 602 of this Code;
      Note of the RCLI!
      Sub-paragraph 4) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      4) the paid amounts of fines shall be refunded to this legal entity on the grounds and in the order, established by Article 605 of this Code;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      5) the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies, shall be reimbursed to this legal entity in the order, established by the tax legislation of the Republic of Kazakhstan.
      11. In case of appearance of tax obligation on payment of taxes and other obligatory payments to the budget, social contributions, obligatory pension contributions within the period from the date of submission of the liquidation tax reporting to the date of completion of the liquidation tax audit, a legal entity, undergoing liquidation, must perform these tax obligations, obligation on the grounds of the notification of the tax authority, mentioned in sub-paragraph 3) of paragraph 2 of Article 607 of this Code.
      12. After completion of the documentary checking, a legal entity, undergoing liquidation, shall simultaneously submit the following documents to a tax body at the location:
      1) A liquidation balance sheet;
      2) A certificate of a bank and (or) an organization, which perform certains of banking operations, on closure of existing bank accounts;
      3) A tax application for receipt of the data on absence and (or) presence of tax arrears, arrears of obligatory pension contributions and social contributions.
      The documents, listed in this paragraph, shall be submitted by a legal entity within three working days from the date of completion of the documentary checking in case of observing the following conditions:
      1) absence of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) absence of overpaid amounts of taxes, fees and fines;
      3) absence of erroneously paid amounts of taxes, fees and fines;
      4) absence of excess of the value-added tax which shall be set off over the amount of the charged tax, which shall be refunded in accordance with Articles 273 and 274 of this Code;
      5) absence of unfulfilled tax application on conduction of the set-off and (or) refund of the (erroneously) overpaid customs duties, taxes, customs contributions and fines, charged by customs bodies.
      In case of presence of tax arrears, arrears of obligatory pension contributions and social contributions, overpaid amounts of taxes, fees and fines, erroneously paid tax amounts, other obligatory payments to the budget, fines, penalties, and (or) the overpaid value-added tax, set off over the amount of the charged tax, which shall be refunded in accordance with Articles 273 and 274 of this Code, a legal entity, undergoing liquidation, shall submit the documents, listed in this paragraph, within three working days from the date which comes last from the date:
      1) of repayment of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) of refund of the overpaid amounts of taxes, fees, fines;
      3) of refund of the erroneously paid tax amounts, other obligatory payments to the budget, fines and penalties;
      4) of refund of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      After the submission of the documents, listed in this paragraph, a tax body must present the certificate on absence of tax arrears, arrears of obligatory pension contributions and social contributions in the order and within the period, establish by this Code;
      13. Fulfillment of the tax obligation of a structural unit of a nonresident legal entity, as well as the permanent establishment of a nonresident legal entity, undergoing termination of its activity in the Republic of Kazakhstan, shall be performed in the order, established by this Article.
      Footnote. Article 37 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 38. Fulfilling the tax obligation of a structural unit of nonresident legal entity, undergoing termination of its activity

      1. A nonresident legal entity, in case of decision-making on termination of the activity of its structural unit, shall simultaneously present the following documents to a tax body at the location of the structural unit:
      1) a tax application on activity termination;
      2) a copy of the decision of a nonresident legal entity on termination of the activity of its structural unit;
      3) a liquidation tax reporting of the structural unit unless otherwise provided by this Article.
      2. The liquidation tax reporting shall be made on thes of taxes, fees, obligatory pension contributions and social contributions, independently paid by an activity terminating structural unit of a legal entity, within the period from the beginning of the tax period, when the decision on termination of the activity of the structural unit was made, to the date of submission of the tax application on activity termination.
      If the deadline of submission of the next tax reporting comes after submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      3. Payment of taxes, fees, social contributions, transfer of obligatory pension contributions, reflected in the liquidation tax reporting, provided by paragraph 2 of this Article, shall be performed by an activity terminating structural unit of a legal entity no later than ten calendar days after the date of submission of the liquidation tax reporting to a tax body.
      If the deadline of the payment of taxes, fees, social contributions, transfer of obligatory pension contributions, reflected in the tax reporting, provided before the liquidation tax reporting, comes after the expiry of the period, mentioned in the first part of this paragraph, the payment (transfer) shall be performed no later than ten calendar days after the submission of the liquidation tax reporting.
      4. If an activity terminating structural unit of a legal entity is not recognized as an independent payer of taxes, fees, obligatory pension contributions and social contributions, the liquidation tax reporting shall not be submitted.
      5. Tax arrears, arrears of obligatory pension contributions and social contributions of an activity terminating structural unit shall be repaid at the expense of the legal entity that has created this structural unit.
      6. After the full repayment of tax arrears, arrears of obligatory pension contributions and social contributions, the legal entity which created the activity terminating structural unit, shall submit the certificate of a bank and (or) an organization, performing certains of banking operations, on closure of the existing bank accounts and termination of the activities of the structural unit to a tax body at the location of the structural unit.
      The tax body shall be obliged to hand the certificate of absence of tax arrears, arrears of pension contributions and social contributions to a taxpayer in the order and within the period, established by this Code.
      Footnote. Article 38 as amended by the Laws of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 39. Fulfillment of the tax obligation in reorganization of a legal entity via merging, joining, separating

      1. A legal entity shall inform in a written form a tax body at its location on reorganization by merger, accession, separation within three working days after the date of decision-making.
      Within three days from the date of approval of the transfer certificate, a legal entity, which is reorganized via merger, accession, separation, shall submit the following documents to a tax body at its location:
      1) a liquidation tax reporting;
      2) a certificate of registration for the value-added tax or the written clarification in case of its loss or damage;
      3) a tax application for the removal from the register for the value-added tax;
      4) a certificate of transfer.
      The documents, listed in sub-paragraphs 2) and 3) of the second part of this paragraph shall be submitted if a legal entity, which is reorganized via merger, accession, separation, is a payer of the value-added tax.
      The liquidation tax reporting shall be composed for thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, in which a legal entity, reorganized via merger, accession, separation, is a payer and (or) a tax agent, within the period from the beginning of the tax period, when the obligation of the presentation of this reporting appeared, to the date of its submission to a tax body.
      The obligation for submission of the liquidation tax reporting in reorganizing via merger shall be entrusted to each legal entity, which became a part of the newly formed entity, in reorganizing via merger - to the joined legal entity.
      If the deadline for submission of the next tax reporting comes after submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      In the reorganization of a legal entity by separation, this entity shall submit the separation balance sheet to a tax entity at its location within three working days from the date of the approval of the separation balance.
      1-1. Fulfillment of the tax obligation of a reorganized legal entity shall be entrusted to its legal successor (legal successors).
      1-2. The establishment of a legal successor (legal successors), and a share of legal successor (legal successors) in repayment of tax arrears of a reorganized legal entity shall be performed in accordance with the civil legislation of the Republic of Kazakhstan.
      2. Reorganization of a legal entity shall not be the grounds for changing of the deadlines of fulfillment of the tax obligation on payment of taxes, other obligatory payments to the budget by a legal successor (legal successors) of this legal entity.
      3. If a legal entity, undergoing reorganization, has overpaid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 599 of this Code.
      If a legal entity, undergoing reorganization, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      4. In the absence of tax arrears of a legal entity, undergoing reorganization:
      1) the erroneously paid amounts of taxes and other obligatory payments to the budget shall be refunded to its legal successor (legal successors) in proportion to the share in the property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines to the budget shall be refunded to its legal successor (legal successors) in proportion of the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 602 of this Code;
      3) the paid amounts of other obligatory payments to the budget shall be refunded to its legal successor (legal successors) in proportion of the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 606 of this Code;
      5. Excluded by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).
      6. A tax authority, within ten working days from the receipt of information of the national registers of identification numbers on the reorganization of legal entity by:
      1) a merger - shall transfer the balance of the personal accounts of the members of a newly formed legal entity to a tax body at the location of the newly formed legal entity on the grounds of the certificate of transfer;
      2) an accession - shall transfer the balance of a personal account of the joined legal entity to a tax body at the location of the legal entity, which accepted this legal entity, on the grounds of the certificate of transfer;
      3) excluded by the Law of the Republic of Kazakhstan dated 04.01.2009 No. 167-IV (shall be enforced from 01.01.2009);
      4) a separation - shall transfer the balance of the personal account of the legal entity, which separated a newly formed legal entity, to a tax body at the location of the newly formed legal entity on the ground of the separation balance sheet.
      The order of the transfer of the balance of the personal accounts of a legal entity shall be established by Article 595 of this Code.
      Footnote. Article 39 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No. 167-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.07.2011; 467-IV (the order of enforcement see Article 9).

Article 39-1. Fulfilling the tax obligation of a permanent establishment without the opening of a branch (a representative office) of a nonresident legal entity when transferring its rights and responsibilities in connection with the presence of the place of effective management (the location of the actual governing body) in the Republic of Kazakhstan

      1. A nonresident legal entity, if it has a permanent establishment without opening a branch (a representative office) in the Republic of Kazakhstan and decided to move the place of effective management (location of the actual governing body) from a foreign state to the Republic of Kazakhstan, shall be obliged, within three working days after filing a tax application on registration as a taxpayer in accordance with paragraph 1-1 of Article 562 of this Code, to inform in a written form the tax body at the location of such permanent establishment on transfer of the rights and obligations by such permanent establishment to a legal entity, a place of effective management (location of the actual governing body) of which is located in the Republic of Kazakhstan.
      Within fifteen calendar days from the registration as a taxpayer, a permanent establishment of the mentioned nonresident legal entity shall be obliged to submit the following documents to a tax body:
      1) a tax application on removal from the register;
      2) the liquidation tax reporting;
      3) a certificate of transfer.
      The liquidation tax reporting shall be made on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, on which the permanent establishment, transferring rights and responsibilities, is a payer and (or) a tax agent, within the period from the beginning of the tax period, when the obligation on submission of this tax reporting appeared, to the date of its submission to a tax body.
      If the deadline for submission of the next tax reporting comes after submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      2. Fulfillment of the tax obligation of a permanent establishment, transferring rights and responsibilities to a legal entity, shall be entrusted to this legal entity, created under the legislation of a foreign state, a place of effective management (location of the actual governing body) of which is located in the Republic of Kazakhstan (legal successor).
      3. Transfer of rights and responsibilities by a permanent establishment to a legal entity shall not be recognized as the grounds for changing of deadlines for fulfillment of its tax obligation on payment of taxes, other obligatory payments to the budget by the legal entity, created under the legislation of a foreign state, a place of effective management (location of the actual governing body) of which is located in the Republic of Kazakhstan.
      4. If a permanent establishment, transferring rights and responsibilities to a legal entity, does not have tax arrears, the overpaid amounts of taxes, fees and fines to the budget shall be refunded to the legal entity, created under the legislation of a foreign state, a place of effective management (location of the actual governing body) of which is located in the Republic of Kazakhstan.
      5. A tax body, within ten working days from the receipt of the documents, listed in paragraph 1 of this Article, shall transfer the balance of the personal account of a permanent establishment, transferring rights and responsibilities to a legal entity, to a tax body at the location of the legal entity, the rights and the responsibilities were transferred to, under the certificate of transfer in the order, established by article 595 of this Code.
      Footnote. The Code is supplemented with Article 39-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 40. Fulfilling the tax obligation of a legal entity in reorganization via separation

      1. A legal entity shall inform a tax body at its location on the decision on reorganization via separation within three working days from the date of the decision-making.
      A legal entity in reorganization via separation, within three working days after the approval of the separation balance, shall submit to a tax body at its location the following documents:
      1) a tax application on implementation of the documentary checking;
      2) the liquidation tax reporting;
      3) a certificate of the registration for the value-added tax or the clarification in a written form in case of its loss or damage;
      4) a tax application for removal from the register from the value-added tax.
      The documents, listed in sub-paragraphs 3) and 4) of the second part of this paragraph shall be submitted, if a legal entity, undergoing reorganization by separation, is a payer of the value-added tax.
      2. The liquidation tax reporting shall be made on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, on which a legal entity, undergoing reorganization, is a payer and (or) a tax agent, within the period from the beginning of the tax period, when the tax application on implementation of the documentary checking was presented, to the date of submission of this application.
      If the deadline for submission of the next tax reporting comes after submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      3. Payment of taxes, other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in tax reporting, shall be performed by a legal entity, undergoing liquidation, no later than ten calendar days from the date of submission of the liquidation tax reporting to a tax body.
      If the deadline for payment of taxes, other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in tax reporting, submitted before the liquidation tax reporting, comes after the period expiry, the payment (transfer) shall be performed no later than ten calendar days from the date of submission of the liquidation tax reporting.
      4. The documentary checking shall be started by a tax body no later than twenty working days after receipt of the tax application from a legal entity, undergoing reorganization.
      5. After completion of the documentary checking in the reorganization by separation, a legal entity, undergoing reorganization, shall simultaneously submit the following documents to a tax body at its location:
      1) a separation balance sheet;
      2) a certificate of a bank and (or) an organization, performing certains of banking operations, on closure of the existing bank accounts;
      3) the tax application for receipt of the data on absence and (or) presence of tax arrears, arrears of obligatory pension contributions and social contributions.
      If a legal entity, undergoing reorganization, has overpaid amounts of taxes, fees and fines to the budget, these amounts shall be set off for repayment of tax debts of a legal entity, undergoing reorganization in the order, established by Article 599 of this Code.
      If a legal entity, undergoing reorganization, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      If a legal entity, undergoing reorganization, has not any tax arrears:
      1) the erroneously paid amounts of taxes and other obligatory payments to the budget shall be refunded to its legal successor (legal successors) in proportion to the share in the property, received by the legal successor (legal successors) during the reorganization, in the order, provided for by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines to the budget shall be refunded to its legal successor (legal successors) in proportion to the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 602 of this Code;
      3) the paid amounts of other obligatory payments to the budget shall be refunded to its legal successor (legal successors) in proportion to the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 606 of this Code;
      Note of the RCLI!
      Sub-paragraph 4) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      4) the (erroneously) overpaid to the budget amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies, shall be refunded to its legal successor (legal successors) in proportion to the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by the customs legislation of the Republic of Kazakhstan;
      5) the (erroneously) overpaid amounts of penalties shall be refunded to its legal successor (legal successors) in proportion to the share in property, received by the legal successor (legal successors) during the reorganization, in the order, established by Article 605 of this Code.
      A legal entity, undergoing reorganization, shall submit the documents, listed in this paragraph, within three working days from the date of completion of the documentary checking in case of simultaneous observance of the following conditions:
      1) absence of tax arrears, arrears on obligatory pension contributions and social contributions;
      2) absence of overpaid amounts of taxes, fees and fines;
      3) absence of erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) absence of unfulfilled tax application on conduction of the set-off and (or) refund of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by the customs bodies.
      If there are any tax arrears, arrears on obligatory pension contributions, social contributions, overpaid amounts of taxes, fees and fines, erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties, a legal entity, undergoing reorganization, shall submit the documents, listed in this paragraph, within three working days from the date that comes last:
      1) after the date of repayment of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) after the date of reimbursement of the overpaid amount of taxes, fees, fines;
      3) after the date of reimbursement of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties.
      4) after the date of reimbursement of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      6. The tax authority after the submission of the documents mentioned in the first part of paragraph 5 of this Article, reorganized by entity must give the person a certificate of no tax arrears, arrears of pension contributions and social contributions in the manner and time stipulated by this Code.
      The tax ax authority transfers personal accounts part of the legal entity to the tax authority at the location of the new legal entities on the basis of the separation balance sheet in accordance with Article 595 of this Code within ten working days of receipt of information of national registers of identification numbers on balance.
      6-1. Fulfillment of the tax obligations of the reorganized legal entity entrusted to his successor(s).
      6-2. Establishment of successor(s), as well as interest successor (s) in the repayment of tax debts reorganized legal entity shall be in accordance with the Civil Code of the Republic of Kazakhstan.
      7. The reorganization of the legal entity is not a basis for changing the dates of execution of his tax liability for payment of taxes and other obligatory payments to the budget of the successor (successors) of the legal entity.
      Footnote. Article 40 as amended by the Law of Republic of Kazakhstan dated 04.07.2009 No. 167-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (order of enforcement see Article 9).

Article 41. Fulfillment of tax liability of individual entrepreneur who terminates the business.

      1. Individual entrepreneur within a month from the date of the decision to cease operations at the same time shall submit to the tax authority at the place of business:
      1) tax statement on documentary checks;
      2) residual tax reporting;
      3) certificate of registration as an individual entrepreneur or commentary on paper when loss or damage;
      4) the certificate of registration with the tax on value added or commentary on paper when loss or damage;
      5) proof of publication in periodical information on the termination of an individual entrepreneur;
      6) tax application for removal from the register on the value added tax.
      The documents referred to in sub-paragraphs 4) and 6) of the first part of this paragraph, shall be submitted, if an individual entrepreneur who terminates operations is the payer of value added tax.
      2. Liquidation tax reports are prepared by of tax and other obligatory payments to the budget, mandatory pension contributions and social contributions for which the individual entrepreneur who terminates operations, payers, and (or) tax agent since the beginning of the tax period in which the tax application submitted on documentary check, to the date of the application.
      If the deadline for the next tax returns comes after the submission of the liquidation of tax reporting, the provision of such regular tax returns not later than the date of the liquidation of tax reporting.
      3. Payment of taxes and other obligatory payments to the budget, social security contributions, the transfer of mandatory pension contributions, as reflected in the liquidation of the tax reporting is self-employed, discontinued operations, not later than ten calendar days from the date of submission to the tax authorities of the liquidation of tax reporting.
      If the deadline for the payment of taxes and other obligatory payments to the budget, social security contributions, transfer of mandatory pension contributions, as reflected in the tax returns submitted to the liquidation of the tax reporting, comes after the expiry of the period specified in the first part of this paragraph, the payment (transfer) shall be made no later than ten calendar days from the date of submission of the liquidation of tax reporting.
      4. Documentary check should be initiated no later than twenty working days after receipt by the tax authority of the tax application of the individual entrepreneur who terminates operations.
      5. Tax debt of an individual entrepreneur who terminates operations, redeemed by his money, including the proceeds from the sale of the property, in order of priority established by the legislative acts of the Republic of Kazakhstan.
      6. If an individual entrepreneur who terminates his/her activity, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      7. If an individual entrepreneur who terminates his/her activity, does not have any arrears:
      1) the erroneously paid amount of taxes and other obligatory payments to the budget shall be refunded to this individual entrepreneur in the order, established by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines to the budget shall be reimbursed to this individual entrepreneur in the order, established by Article 602 of this Code;
      3) the paid amounts of other obligatory payments to the budget shall be reimbursed to this individual entrepreneur in the order, established by Article 606 of this Code;
      Note of the RCLI!
      Sub-paragraph 4) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      4) the paid amounts of taxes shall be refunded to this individual entrepreneur in the order, established by Article 605 of this Code;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      5) the (erroneously) overpaid to the budget amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies, shall be refunded to this individual entrepreneur in the order, established by the customs legislation of the Republic of Kazakhstan;
      8. The tax obligation of an individual entrepreneur who terminated his/her activity, shall be recognized as fulfilled after completion of the documentary checking, if tax arrears, arrears of obligatory pension contributions and social contributions are fully repaid.
      9. The date of removal of an individual entrepreneur from the register in a tax body shall be recognized as the date of fulfillment of his/her tax obligation in accordance with paragraph 8 of this Article.
      10. An individual entrepreneur who terminated his/her activity, shall be obliged to submit to a tax body at his/her location the following documents:
      1) a certificate from a bank and (or) an organization, performing certains of banking operations, on closure of existing bank accounts;
      2) a document of an internal affairs body on destruction of the stamp (if there is one) of an individual entrepreneur.
      An individual entrepreneur shall submit the documents, listed in this paragraph, within three working days from the date of completion of the documentary checking in case of simultaneous observance of the following conditions:
      1) absence of tax arrears, arrears on obligatory pension contributions and social contributions;
      2) absence of overpaid amounts of taxes and other obligatory payments to the budget, fees and fines;
      3) absence of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) absence of excess of the value-added tax, which is set off over the amount of charged tax, which shall be refunded in accordance with Articles 273 and 274 of this Code;
      5) absence of unfulfilled tax application on conduction of the set-off and (or) refund of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      If there are tax arrears, arrears of obligatory pension contributions, social contributions, overpaid amounts of taxes, fees and fines, the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties and (or) excess of the value-added tax, which shall be set off over the amount of charged tax, which shall be refunded in accordance with Articles 273 and 274 of this Code, an individual entrepreneur who terminated his/her activity, shall submit the documents, listed in this paragraph, within three working days from the date, which comes last:
      1) after the date of repayment of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) from the date of reimbursement of the overpaid amounts of taxes, fees, fines;
      3) from the date of reimbursement of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) from the date of reimbursement of the value-added tax, set off over the amount of charged tax, which shall be refunded in accordance with Articles 273 and 274 of this Code;
      5) from the date of reimbursement of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      11. The provisions of these Articles shall not be applied to individual entrepreneurs, who are under special order of fulfillment of the tax obligation in termination of his/her activity in accordance with Article 43 of this Code.
      Footnote. Article 41 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 42. Fulfilling the tax obligation of a private notary, a private enforcement agent, a lawyer, undergoing termination of his/her practice

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).
      1. A private notary, a privet enforcement agent, a lawyer shall be obliged within one month after the decision on termination of a notary, lawyer practice, to submit simultaneously the following documents to a tax body at his/her location:
      1) a tax application on implementation of the documentary checking;
      2) the liquidation tax reporting;
      3) a document, confirming publication in an official publisher of the information on termination of practice of a private notary, a privet enforcement agent, a lawyer.
      2. The liquidation tax reporting shall be made on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, on which a private lawyer, notary, enforcement agent, who terminates his/her practice, is a payer and (or) a tax agent, within the period from the beginning of the tax period, when the tax application on implementation of the documentary checking is presented, to the date of submission of this application.
      If the deadline for submission of the next tax reporting comes after submission of the liquidation tax reporting, the submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      3. Payment of taxes and other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in the tax reporting, shall be performed by a private notary, a private enforcement agent, a lawyer, who terminates his/her practice, no later than ten calendar days from the date of submission of the liquidation tax reporting to a tax body.
      If the deadline of payment of taxes, other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in the tax reporting, submitted before the liquidation tax reporting, comes after expiry of the period, mentioned in the first part of this paragraph, the payment (transfer) shall be performed no later than ten calendar days from the date of submission of the liquidation tax reporting.
      4. The documentary checking must start no later than twenty working days after the receipt of the application of a private notary, a privet enforcement agent, and a lawyer, who terminates his/her practice, by a tax body.
      5. If a private notary, a privet enforcement agent, a lawyer, who terminates his/her practice, has overpaid amounts of taxes, fees and fines, these amounts shall be set off over repayment of the tax arrears of a private notary, a private enforcement agent, a lawyer, who terminates his/her practice, in the order, established by Article 599 of this Code.
      If a private notary, a private enforcement agent, a lawyer, who terminates his/her practice, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      6. If a private notary, a private enforcement agent, a lawyer, who terminates his/her practice does not have any tax arrears:
      1) the erroneously paid amounts of taxes, fees and fines to the budget shall be refunded to this private notary, a private enforcement agent, a lawyer in the order, established by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines to the budget shall be refunded to this private notary, a private enforcement agent, a lawyer in the order, established by Article 602 of this Code;
      3) the paid amounts of other obligatory payments to the budget shall be refunded to this private notary, a private enforcement agent, a lawyer in the order, established by Article 606 of this Code.
      4) the paid amounts of penalties shall be reimbursed to this private notary, a lawyer, who terminates his/her practice, in the order, established by Article 605 of this Code;
      5) the (erroneously) overpaid to the budget amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies, shall be refunded to this private notary, a lawyer, who terminates his/her practice, in the order, established by the customs legislation of the Republic of Kazakhstan.
      7. The tax obligation of a private notary, a private enforcement agent, a lawyer, who terminated his/her practice, shall be recognized as fulfilled after completion of the documentary checking, if tax arrears, arrears of obligatory pension contributions and social contributions are absent or fully repaid.
      8. The date of removal of a private notary, a private enforcement agent, a lawyer from the register in a tax body, shall be recognized as the date of fulfillment of the tax obligation in accordance with paragraph 7 of this Article.
      9. A private notary, a private enforcement agent, a lawyer who terminated his/her practice, shall be obliged to submit to a tax body at his/her location the following documents:
      1) a certificate of a bank and (or) other organization, performing certains of banking operations, on closure of existing bank accounts using for the implementation of court orders, notary, lawyer practice;
      2) a document of an internal affairs body on destruction of the stamp (if there is one) of a private notary, a private enforcement agent, a lawyer.
      A private notary, a private enforcement agent, a lawyer who terminated his/her practice, shall submit the documents, listed in this paragraph, within three working days after completion of the documentary checking in case of simultaneous observance of the following conditions:
      1) absence of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) absence of overpaid amounts of taxes, fees and fines;
      3) absence of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) absence of unfulfilled tax application on conduction of the set-off and (or) refund of the (erroneously) paid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      If there are any tax arrears, arrears of obligatory pension contributions, social contributions, overpaid amounts of taxes, fees and fines, the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties, a private notary, a private enforcement agent, a lawyer, who terminated his/her practice, shall submit the documents, listed in this paragraph, within three working days after the date, which comes last:
      1) after the date of repayment of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) after the date of refund of the overpaid amounts of taxes, fees, fines;
      3) after the date of reimbursement of the erroneously paid taxes, other obligatory payments to the budget, fines and penalties;
      4) after the date of refund of the (erroneously) paid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      Footnote. Article 42 as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 28.12.2010 No. 368-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 43. Specifics of fulfillment of the tax obligation by certain groups of taxpayers when terminating their activity

      1. In case of making a decision on termination of the activity, an individual entrepreneur, applying special tax regime on the basis of a patent, a simplified declaration, shall simultaneously submit to a tax body at his/her location the following documents:
      1) the tax application on termination of the activity:
      2) the liquidation tax reporting;
      3) a certificate of state registration of the individual entrepreneur or a clarification in a written form in case of its loss or damage;
      4) the document, confirming publication of the information on termination of the activity of the individual entrepreneur in a periodical publisher.
      This Article shall be applied to the individual entrepreneurs, who are not (were not) payers of the value added tax and who were continuously applying special tax regime on the basis of a patent and (or) a simplified declaration within the period, established by Article 46 of this Code or from the date of state registration as an individual entrepreneur.
      2. The liquidation tax reporting shall be made on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, on which an individual entrepreneur, undergoing termination of his/her activity, is a payer and (or) a tax agent, within the period from the beginning of the tax period, when the tax application on termination of the activity is presented, to the date of submission of this application.
      If the deadline of submission of the next tax reporting comes after submission of the liquidation tax reporting, submission of this next tax reporting shall be performed no later than the date of submission of the liquidation tax reporting.
      3. Payment of taxes, other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in the liquidation tax reporting, shall be performed by a taxpayer no later than ten calendar days after the date of submission of the liquidation tax reporting to a tax body.
      If the deadline of payment of taxes, other obligatory payments to the budget, social contributions, and transfer of obligatory pension contributions, reflected in the tax reporting, submitted before the liquidation tax reporting, comes after the expiry of the period, mentioned in the first part of this paragraph, the payment (transfer) shall be performed no later than ten calendar days from the date of submission of the liquidation tax reporting to a tax body.
      4. If a taxpayer has overpaid amounts of taxes and other obligatory payments to the budget, these amounts shall be refunded to this taxpayer in the order, established by Article 602 of this Code.
      If a taxpayer, who terminates his/her activity, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      5. Tax body shall be obliged within three working days after the receipt of a taxpayer’s tax application on termination of the activity to send an inquiry:
      1) to the authorized tax bodies - for presenting information about the transactions with the property, subjected to the state registration, conducted by an individual, who is an individual entrepreneur, who terminates his/her activity, and his/her property as of the date of receipt of the tax application on termination of the activity;
      2) to customs bodies - for presenting information about foreign-trade transactions, conducted by an individual, who is an individual entrepreneur, who terminates his/her activity, and confirming absence of arrears of customs duties and taxes on the date no earlier than the date of the request of a tax body;
      3) to banks and (or) organizations, performing certains of banking operations, - for presenting information about balances and cash flow in the bank accounts of an individual entrepreneur, who terminates his/her activity, on the date of receipt of the tax application on termination of the activity.
      Information about transactions, specified by sub-paragraphs 1) and 2) of this paragraph, and information about cash flow in bank accounts, shall be presented for the period, when there was no tax audit of a taxpayer, within the period of action limitation, established by Article 46 of this Code, to the date of receipt by a tax body of the tax application on termination of the activity.
      6. The information under the request of a tax body, mentioned in paragraph 5 of this Article, shall be presented no later than twenty working days from the date of its receipt, unless otherwise provided by sub-paragraph 12) of Article 581 of this Code.
      7. A tax body shall be obliged no later than ten working days after receipt of all the information, to perform the in-house audit, on the results of which a conclusion shall be drawn, in the order, established by this Code. The conclusion shall reflect the results of the in-house audit, including the revealed violations. The notification to eliminate the revealed violations on the results of the in-house audit, based on the conclusion, reflecting the revealed violations, shall be sent to the taxpayer in the order, established by Chapter 84 of this Code.
      Fulfillment of the notification to eliminate the violations, revealed by the results of the in-house audit, shall be performed by the taxpayer in the order, established by Article 587 of this Code.
      8. Tax arrears of an individual entrepreneur, who terminates his/her activity, shall be covered at the expense of the money of this individual entrepreneur, including the money, received from realization of the property of the individual entrepreneur in the order of priority, established by legislative acts of the Republic of Kazakhstan.
      9. If an individual entrepreneur, who terminates his/her activity, has overpaid amounts of taxes, fees and fines to the budget, these amounts shall be set off for repayment of tax arrears of this individual entrepreneur in the order, established by Article 599 of this Code.
      If an individual entrepreneur, who terminates his/her activity, has erroneously paid amounts of taxes, fees and fines to the budget, these amounts shall be set off in the order, established by Article 601 of this Code.
      10. If a taxpayer, who terminates his/her activity, does not have any tax arrears:
      1) the erroneously paid amounts of taxes and other obligatory payments to the budget shall be refunded to this taxpayer in the order, established by Article 601 of this Code;
      2) the overpaid amounts of taxes, fees and fines to the budget shall be refunded to this taxpayer in the order, established by Article 602 of this Code;
      3) the paid amount of other obligatory payments to the budget shall be refunded to this taxpayer in the order, established by Article 606 of this Code;
      Note of the RCLI!
      Sub-paragraph 4) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      4) the paid amounts of penalties shall be refunded to this taxpayer in the order, established by Article 605 of this Code;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2010 (see Article 2 of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV).
      5) the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies, shall be reimbursed to this taxpayer in the order, established by the customs legislation of the Republic of Kazakhstan.
      11. The activity of an individual entrepreneur shall be recognized as terminated in case of fulfillment of the following conditions:
      1) completion of the in-house audit, the date of which shall be determined in accordance with Article 587 of this Code;
      1-1) elimination of the violations, revealed during the in-house audit;
      2) absence of tax arrears, arrears of obligatory pension contributions and social contributions.
      12. The date of removal of an individual entrepreneur from the register in a tax body shall be one of the dates, which come the last in fulfillment of the conditions, provided for by paragraph 11 of this Article.
      13. The individual entrepreneur, whose activity shall be recognized as terminated, shall be obliged to submit to a tax body at his/her location the following documents:
      1) a certificate of a bank and (or) an organization, performing certains of banking operations, on closure of existing bank accounts.
      2) a document of an internal affairs body on destruction of the stamp (if there is one) of an individual entrepreneur.
      The individual entrepreneur, whose activity shall be recognized as terminated, shall submit the documents, listed in this paragraph, within three working days after the date of completion of the in-house audit, in case of fulfillment of the following conditions:
      1) absence of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) absence of the overpaid amounts of taxes, fees and fines;
      3) absence of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) absence of the unfulfilled tax application on conduction of the set-off and (or) refund of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      If there are any tax arrears, arrears of obligatory pension contributions, social contributions, overpaid amounts of taxes, fees and fines, the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties, an individual entrepreneur, whose activity shall be recognized as terminated, shall submit the documents, listed in this paragraph, within three working days from the date, which comes first:
      1) after the date of repayment of tax arrears, arrears of obligatory pension contributions and social contributions;
      2) after the date of reimbursement of the overpaid amounts of taxes, fees, fines;
      3) after the date of reimbursement of the erroneously paid amounts of taxes, other obligatory payments to the budget, fines and penalties;
      4) after the date of reimbursement of the (erroneously) overpaid amounts of customs duties, taxes, customs contributions and fines, charged by customs bodies.
      Footnote. Article 43 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No.167-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 44. Fulfillment of the tax obligation of an individual, recognized as missing

      1. The tax obligation of an individual shall be suspended from the date of his/her recognition as missing, on the basis of the court decision.
      2. The tax liability of an individual, recognized by the court as missing, shall be covered by a person, who is entrusted with guardianship over the property of the individual, recognized as missing.
      3. If the property of an individual, who is recognized as missing, is not enough for repayment of tax arrears, his/her outstanding arrears shall be written off by a tax body under the court decision on insufficiency of the property.
      4. In the event that a court revokes decision on recognizing a person missing, the previously written off tax arrears shall be reinstated regardless of the limitation period, established by Article 46 of this Code.

Article 45. Repayment of tax arrears of a deceased individual

      1. The tax debt of a deceased individual owed as of the date of his death or the date of his/her death declaration shall be repaid by his/her heir (heirs) within the value of the property inherited and in proportion to the heir’s share in the estate as of the date it is received.
      If the property of a deceased individual, as well as an individual declared deceased under a court decision is not enough for repayment of tax arrears, the outstanding part of tax arrears shall be written off by a tax body on the basis of the court decision on insufficiency of the property.
      2. If a heir (heirs) is (are) underage, the obligation on repayment of tax arrears of an individual as of the date of his/her death or the date of his/her death declaration within the value of the inherited property, and in proportion to the share in the inheritance as of the date of its receipt, shall be entrusted to this (these) heir (heirs) only under the implemented court decision.
      3. Tax arrears of an individual as of the date of his/her death or the date of declaration of his/her death under the implemented court decision, shall be recognized as repaid in the cases if:
      1) an underage heir (heirs) is released from fulfillment of the tax obligation on repayment of these arrears under the implemented court decision;
      2) absence of an heir (heirs).
      In the event that a court revokes a decision to declare an individual deceased, the previously written off tax arrears shall be reinstated regardless of the limitation period, established by Article 46 of this Code.
      4. The provision of this Article shall also be applied to a deceased individual entrepreneur, private notary, private enforcement agent, a lawyer or an individual entrepreneur, private notary, private enforcement agent, a lawyer, who was declared deceased on the basis of the implemented court decision.
      Footnote. Article 45 as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

Article 46. Limitation period for the tax obligation and request

      1. A limitation period for the tax obligation and request - is a period of time within which:
      1) a tax service body shall have the right to charge or reconsider the calculated, charged amount of taxes and other obligatory payments to the budget;
      2) a taxpayer (a tax agent) shall be obliged to submit tax reporting, and shall have the right to make changes and additions to tax reporting, and to revoke tax reporting;
      3) a taxpayer (a tax agent) shall have the right to request the set-off and (or) refund the taxes and other obligatory payments to the budget, fines;
      4) a tax service body shall be obliged to perform the set-off and (or) refund taxes and other obligatory payments to the budget, fines.
      2. Limitation period for the tax obligation and request shall last five years. Duration of a limitation period shall start after expiry of a certain tax period, except for the cases, provided for by this Article.
      3. With respect to the taxpayers, performing activity in accordance with a contract on subsurface use, a tax service shall have the right to charge or reconsider a charged amount of the excess profit tax, as well as taxes and other obligatory payments to the budget, if they use one of the following indices: internal standard of profitability (ISP) or R-factor (yield index) for their calculation method, within the period of a contract on subsurface use and five years after expiry of the contract on subsurface use.
      4. Charge and reconsideration of a calculated amount of taxes and other obligatory payments to the budget, regarding operations with a taxpayer, recognized as a false enterprise, or a transaction (transactions), performed by a subject of individual entrepreneurship without intention to carry out an entrepreneurial activity, shall be performed by a tax service body after implementing a sentence or a resolution of a court.
      5. In the event that a taxpayer (a tax agent) submits an additional tax reporting for the period on which the limitation period, established in paragraph 1 of this Article, expires earlier than in one calendar year, the mentioned limitation period shall be extended in the part of charge and (or) reconsideration of the charged amount of taxes and other obligatory payments to the budget for another calendar year.
      6. With respect to taxes and other obligatory payments to the budget, fines which shall be set off and (or) refunded by tax bodies in the order, established by this Code the limitation period for conducting the set-off and (or) refund, shall be five years after expiry of the tax period, except for the cases, established by Article 548 of this Code.
      7. In case of expiry of the limitation periods of the tax obligation and request in the period of a taxpayer’s (a tax agent’s) appeal in the order, established by the legislation of the Republic of Kazakhstan, against the results of a tax audit and (or) a decision of a higher body, made upon the results of considering a complaint against the notification, as well as against an action (inaction) of tax service officials, the limitation period shall be extended in the part of appeal until the implementation of a decision, made upon the results of the application (complaint) consideration.
      8. In case of expiry of the limitation periods of tax obligation and request in the period of consideration of a nonresident’s tax application for refund of the income-tax from the budget and a conditional bank deposit on the basis of an international agreement, or a nonresident’s appeal in the order, established by the legislation of the Republic of Kazakhstan, against a decision of a tax body, rendered upon the results of consideration of the tax application for reimbursement of the income-tax from the budget and a conditional bank deposit on the basis of an international agreement, or a nonresident’s appeal against a decision of an authorized body, rendered upon the results of consideration of the nonresident’s complaint on the mentioned in this paragraph decision of a tax body, the limitation period shall be extended until the implementation of a decision, rendered upon the results of the application (complaint) consideration.
      9. In case of expiry of the limitation periods of tax obligation and request in the period of fulfillment of the mutual agreement procedure by an authorized body in accordance with Article 226 of this Code, the limitation period shall be extended until the implementation of a decision of an authorized body and (or) a competent body of a foreign state, accepted upon the results of the mutual agreement procedure.
      Footnote. Article 46 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 6. CHANGE OF DEADLINES OF TAX OBLIGATION FOR PAYMENT OF TAXES AND (OR) FINES. THE GROUNDS FOR TERMINATION OF THE TAX OBLIGATION

      Footnote. The title of Chapter 6 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

Article 47. Basic provisions

      1. Change in deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be recognized as the deferral of the deadline, established by this Code for payment of taxes (except for the taxes, withheld at the source of payment, excise and the value-added tax on the imported goods) and (or) fines on the basis of a taxpayer’s application for a later date, but not longer than twelve calendar months.
      The application for change in deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall contain the reasons for the deferral of payment of taxes and (or) fines.
      2. The right to fulfill the tax obligation under the changed deadlines shall not be reassigned.
      3. Change in deadlines for fulfillment of the tax obligation for payment of taxes shall not release a taxpayer from payment of fines for untimely payment of taxes in accordance with Article 610 of this Code.
      4. Change in deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be performed, unless otherwise provided by legislative acts of the Republic of Kazakhstan, under the pledge of a property of a taxpayer and (or) a third person, and (or) under the guarantee of a bank in the order, established by this Chapter.
      Footnote. Article 47 as amended by the Law of Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2)

Article 48. The body, authorized to make a decision on change of the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).
      1. Decision on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines, payable to the budget and distributed among the republican and local budgets, shall be approved by an authorized body unless otherwise provided by legislative acts of the Republic of Kazakhstan.
      2. Decision on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines, fully payable to local budgets, shall be accepted by a tax body at the location of a taxpayer’s registration.
      Footnote. Article 48 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).

Article 49. The order of changing of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines under the bank’s guarantee

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).
      1. Application on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines under the bank’s guarantee, shall be submitted by a taxpayer to a tax service body, authorized to make the decision on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines, no later than ten calendar days from the date of conclusion of the bank guarantee contract. The application shall be attached with the bank guarantee contract, concluded between the bank - guarantor and a taxpayer, and the bank guarantee.
      2. The bank guarantee must be irrevocable. The content of the bank guarantee must meet the requirements, established by the legislation of the Republic of Kazakhstan.
      3. Not later than fifteen calendar days from the date of receipt of a taxpayer’s application, a tax body shall make one of the following decisions, which shall be enforced from the date of signing:
      1) on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines with the attached schedule, coordinated with a taxpayer on fulfillment of the tax obligation, which establishes deadlines for payment or taxes and (or) fines and is an integral part of this decision;
      2) on refusal to change the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines.
      4. The decision to change deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall indicate a and amount of a tax and (or) fines, for which there was a change in payment deadlines, last name, name, patronymic (if there is one) or name of a taxpayer, identity number and validity of the decision.
      5. Decision to refuse to change deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be made in case of a taxpayer’s incompliance with of this Chapter.
      Footnote. Article 49 as amended by the Law of the Republic of Kazakhstan No. 200-IV (the order of enforcement see Article 2).

Article 50. The order of changing the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines under the pledge of property

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).
      1. An application on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines under the pledge of property of a taxpayer and (or) a third person shall be submitted by a taxpayer to a tax body, authorized to make the decision on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines, no later than ten calendar days from the date of conclusion of the pledge agreement.
      2. No later than fifteen calendar days from the date of receipt of a taxpayer’s application, a tax service body shall make one of the following decisions which shall be enforced from the date of its signing:
      1) on change of deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines with the attached schedule, coordinated with a taxpayer on fulfillment of the tax obligation, which establishes deadlines for payment or taxes and (or) fines and is an integral part of this decision;
      2) on refusal to change deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines.
      3. The decision to change the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall indicate a and amount of a tax and (or) fines, for which there was a change in payment deadlines, last name, name, patronymic (if there is one) or name of a taxpayer, identity number and validity of the decision.
      4. Decision to refuse to change deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be approved in case of a taxpayer’s incompliance with this Chapter.
      Footnote. Article 50 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).

Article 51. The order of conclusion of an agreement for pledge of property

      1. The agreement for pledge of property shall be concluded between a taxpayer and (or) a third person and a tax body at the location of a taxpayer’s registration, within fifteen calendar days from the date of receipt of a taxpayer’s written application for conclusion of the agreement for pledge of property with attachment of the report of an appraiser on appraisal of the market value of the property, put in pledge.
      The report of an appraiser on appraisal of the market value of the property, put into pledge, shall be composed no earlier than fifteen days from the date of submission of a taxpayer’s written application for conclusion of the agreement for pledge of property.
      2. The agreement for pledge of property shall be concluded in case of observance of the following conditions:
      1) the content of the pledge agreement shall correspond with the standards, established by the legislation of the Republic of Kazakhstan;
      2) the property, which is put into pledge, shall be liquid, insured against loss or damage, and its market value shall not be less than the amount of taxes and fines, payable to the budget. Shall not be subjected to pledge:
      the objects of life support;
      electrical, thermal and other forms of energy;
      the distrained property;
      the property, on which the restrictions are imposed by the public authorities;
      the property, alienated to the third parties;
      perishable raw materials and food;
      the property rights;
      3) repawning of property, put into pledge, shall not be allowed;
      4) in cases when the legislative acts of the Republic of Kazakhstan provide for obligatory state registration of the agreement for pledge of property, a taxpayer shall be obliged, after conclusion of the pledge agreement, to provide its registration in the appropriate register body and shall immediately present a document, confirming the registration of the pledge agreement to a tax service body, which makes the decision to change the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines.
      Footnote. Article 51 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 52. Expiration of the decision to change the deadlines for fulfillment of a tax obligation for payment of taxes and (or) fines

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).
      1. Operation of the decision to change the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be terminated after expiry of the duration of the period, established in it.
      2. Operation of the decision to change the deadlines for fulfillment of the tax obligation for payment of taxes and (or) fines shall be terminated ahead of schedule in case if the taxpayer pays all amounts of taxes and (or) fines before expiry of the duration period, established by the decision or in case if the taxpayer violates the conditions of the schedule of fulfillment of the tax obligation for payment of taxes and (or) fines.
      Footnote. Article 52 as amended by the Law of Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2)

Article 53. The order for foreclosure and realization of a taxpayer’s pledged property, and of the request to fulfill the bank guarantee

      1. In case if the schedule of fulfillment of the tax obligation, secured by the pledge of property of a taxpayer and (or) a third person and (or) the bank guarantee, was violated, a tax body shall foreclose property of a taxpayer and (or) a third person, or shall request to fulfill the bank guarantee.
      2. Realization of property, put into pledge by a taxpayer and (or) a third person, shall be performed in a compulsory manner and out of the court in accordance with the civil legislation of the Republic of Kazakhstan.

Article 54. Termination of the tax obligation

      1. The tax obligation of an individual shall be terminated:
      1) with death;
      2) with declaration of his/her death on the basis of the implemented court decision.
      2. The tax obligation of an individual entrepreneur shall be terminated after termination of his/her activity in the order, established by the legislation of the Republic of Kazakhstan.
      3. The tax obligation of a legal entity shall be terminated:
      1) after its liquidation;
      2) after its reorganization via accession (towards the accepted legal entity), merger and separation.

2. SPECIAL PART

SECTION 3. BASIC PROVISIONS

Article 55.s of taxes and other obligatory payments to the budget

      1. In the Republic of Kazakhstan, there are the following:
      1) taxes:
      a corporate income tax;
      an individual income tax;
      a value-added tax;
      the excise taxes;
      a rental tax for export;
      the special payments and taxes of subsoil users;
      a social tax;
      a vehicle tax;
      a land tax;
      a property tax;
      a tax on gambling industry;
      the fixed tax;
      a single land tax;
      2) other obligatory payments to the budget:
      the state duty;
      the charges:
      the registration charges;
      a toll for vehicles running in the territory of the Republic of Kazakhstan;
      an auction charge;
      a license charge for the right to perform certains of activities;
      a charge for a permission to use radio spectrum by television and radio broadcasting organizations;
      the fee:
      for use of land;
      for use of surface water resources;
      for emissions into the environment;
      for use of fauna;
      for use of forest;
      for use of especially protected natural areas;
      for use of radio spectrum;
      for provision of intercity and (or) international telephone and cellular communications;
      for use of navigable waterways;
      for placement of the outer (visual) advertisement.
      1-1. In the purposes of applying the international agreements, the value-added tax and excises shall be recognized as the indirect taxes.
      2. The amounts of taxes, other obligatory payments to the budget shall be transferred to the appropriate budgets in the order, established by the Budget Code of the Republic of Kazakhstan and by the Law on the Republican Budget.
      Footnote. Article 55 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

      Note of the RCLI!
      In accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV the provisions of Chapter 7 shall not be applied to...

Chapter 7. TAX ACCOUNTING

Article 56. Tax accounting and reporting documentation

      1. Tax accounting - is the process of a taxpayer’s (a tax agent’s) keeping of accounting documentation in accordance with the requirements of this Code for purposes of generalization and systematization of information about the taxation objects, and (or) objects, related to taxation, as well as the calculation of taxes and other obligatory payments to the budget and composition of tax reporting.
      Consolidated tax accounting - is the tax accounting, performed by authorized representatives of the participants of an agreement on joint activity on the consolidated activity, as well as on the share of each participant of the agreement on joint activity.
      2. Tax accounting is based on accounting data. The order of keeping accounting documentation shall be established by the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      3. A taxpayer (a tax agent), personally or through an authorized representative of participants of an agreement on joint activity, responsible for keeping tax accounting, shall organize tax accounting and determine forms of generalization and systematization of information in tax purposes in the form of tax registers in the way, in order to provide:
      1) formation of full and reliable information on the order of accounting for purposes of taxation of operations, performed by a taxpayer (a tax agent) during a tax period;
      2) interpretation of every line of forms of tax accounting;
      3) reliable composition of a tax accounting;
      4) presentation of information to tax service bodies for tax audit.
      4. A taxpayer (a tax agent) shall independently develop and approve the tax accounting policy unless otherwise provided in this paragraph.
      Taxpayers, who apply special tax regime for subjects of small business, special tax regime for peasants and farmers for the activity, which these special orders shall apply to, shall approve the tax accounting policy, developed independently in accordance with the form, established by the Government of the Republic of Kazakhstan.
      5. Tax accounting policy - is the document, accepted by a taxpayer (a tax agent), establishing the order of keeping the tax accounting with observance of the requirements of this Code.
      The tax accounting policy can be included in the form of separate part in the tax policy, developed in accordance with international standards of financial reporting and with requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      6. The accounting documentation shall include:
      1) an accounting documentation - for persons who are entrusted with its keeping by the legislative act on accounting and financial reporting.
      2) the tax forms;
      3) a tax accounting policy;
      4) other documents which are the basis for determination of taxation objects and (or) objects, related to taxation, and for calculation of the tax obligation.
      Footnote. Article 56 as amended by the Laws of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012).

Article 57. Regulations of the tax accounting

      1. A taxpayer (a tax agent) shall keep the tax accounting in tenge under the method of calculation in the order and in accordance with conditions, established by this Code.
      2. Method of calculation - is a method of accounting, according to which regardless of time of payment, the income and expenses are calculated from the date of execution of works, provision of services, shipping of goods in order to realize them and record the property.
      3. A taxpayer (a tax agent) shall determine taxation objects and (or) objects, related to taxation and calculate taxes and other obligatory payments to the budget on the basis of a tax accounting for a tax period.
      4. Unless otherwise is provided by this Code, accounting of the exchange rate differences for tax purposes shall be performed in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting with application of the market rate of exchange.
      5. Accounting for inventories for tax purposes shall be performed in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting unless otherwise is provided by this Code.
      6. Operation of a barter agreement, transfer of a subject of mortgage to a mortgagee in inobservance of the obligation, secured by the mortgage for tax purposes, shall be considered as realization of goods, execution of works, and provision of services.
      Footnote. Article 57 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 58. Regulations on the separate tax accounting

      1. A taxpayer, who performs thes of activities, for which there are various tax conditions, provided for by this Code, shall be obliged to keep the separate accounting of taxation objects and (or) objects, related to taxation for purposes of calculation of the tax obligations for theses of activities.
      2. A subsoil user shall be obliged to keep separate tax accounting of taxation objects and (or) objects, related to taxation in order to calculate the tax obligations for contract activity separately from noncontract activity in the order, provided for by Article 310 of this Code.
      3. Operations with derivative financial instruments shall not be considered as operations for subsoil use (contract activity).
      4. In case, provided by paragraph 4 of Article 80 of this Code, an authorized representative of participants of a contract on joint activity shall be obliged to keep the separate tax accounting of taxation objects and (or) objects, related to taxation for joint or other activity.
      5. An entrusted administrator shall be obliged to keep the separate tax accounting of taxation objects and (or) objects, related to taxation for the activity of an entrusted administration, which is performed in the interests of a founder of the entrusted administration under the agreement on entrusted administration of property or beneficiary in other cases of entrusted administration, and other activity.
      6. The separate tax accounting shall be kept by a taxpayer on the basis of accounting documentation with observance of conditions, established by this Code.
      A taxpayer cannot merge taxation objects and (or) objects, related to taxation for purposes of calculation of the tax obligations for thes of activities, for which there are various tax conditions, established by this Code.
      7. A taxpayer shall personally establish the order of keeping the separate tax accounting in a tax accounting policy, including a list of total income and expenses between thes of activities, for which there are various tax conditions, established by this Code.
      At that, the total income and expenses refer to income and expenses of a tax reporting period, including income and expenses of the general fixed assets, which do not have direct cause-effect relation with implementation of a certain of activity and cannot be fully attributed to any of activity, for which there are various tax conditions, established by this Code.
      8. In case if the tax accounting policy does not have established order of distribution of total income and expenses, for which there are various tax conditions, established by this Code, the tax service bodies shall perform distribution of these income and expenses during a tax audit in the order, established by sub-paragraph 1) of Article 310 of this Code.

Article 59. Requirements for composition and keeping of accounting documentation

      1. Accounting documentation shall be composed in paper and (or) electronic format and shall be presented to tax service bodies during implementation of a tax audit.
      2. Accounting documentation shall be made by a taxpayer (a tax agent) in Kazakh and (or) Russian languages.
      If there are certain documents, made in foreign languages, a tax service body shall have the right to require their translation into Kazakh or Russian languages.
      3. When making an accounting documentation in electronic form, a taxpayer (a tax agent) shall be obliged to present copies of this documentation in paper format during a tax audit at the request of tax service officials.
      4. Accounting documentation shall be kept until expiry of the limitation period, established by Article 46 of this Code for each of tax and other obligatory payment, this documentation is related to, from a tax period, following the period when accounting documentation is composed, except for the cases, provided for by paragraphs 5 and 6 of this Article.
      5. Accounting documentation, confirming the cost of the fixed assets, including those, transferred (received) on financial leasing, shall be kept until expiry of the limitation period, specified by Article 46 of this Code, which begins from the expiry date of the last tax period, in which replacement or absolute disbursement of these assets occurred.
      6. Accounting documentation, confirming the cost of assets, which are not subjected to depreciation in purpose of taxation, shall be kept until expiry of the limitation period, established by article 46 of this Code, which begins with expiry of the last tax period, in which the replacement or full use of these assets took place.
      7. During reorganization of a taxpayer (a tax agent) - a legal entity, the obligation for keeping of accounting documentation of a reorganized person shall be entrusted to his/her legal successor (legal successors).

Article 60. Requirements for tax accounting policy

      1. Tax reporting policy shall have the following regulations:
      1) forms and order of composition of tax registers, developed by a taxpayer (a tax agent) personally;
      2) a list of ongoing activities according to the generalification of Economic Activities, established by a standardization body, authorized by the Government;
      3) the names of officials, responsible for observance of the tax accounting policy.
      4) the order of keeping of the separate tax accounting in case of implementation of thes of activities, for which there are variouss of tax condition, established by this Code, with observance of the rules, specified by Article 58 of this Code;
      5) the order of keeping of the separate tax accounting in case of conducting the subsurface use operations.
      6) the methods, chosen by a taxpayer forifying expenses as a deduction for purpose of calculation of the corporate income tax, and the set-off of the value-added tax, provided for by this Code;
      7) the policy of the hedged risks’ determination, hedged articles, and hedging instruments, used in respect to them, a method of assessment of hedge effectiveness in the case of hedging operations;
      8) a policy of income accounting on the Islamic securities in case of operations with Islamic securities;
      9) the standards of depreciation on each subgroup, group of the fixed assets, including the provisions of paragraph 2 of Article 120 of this Code;
      10) in case of an issue, in accordance with this Code, of invoices by structural units of a nonresident legal entity, which is a payer of the value-added tax, - in the context of structural units, issuing invoices:
      the code of each of these structural units, used to numerate invoices for identification of these structural units;
      a maximal number of figures, used to numerate invoices during their issuing.
      2. Tax accounting policy on joint activity shall be developed and approved by the participants of an agreement on joint activity in the order and on the grounds, established by this Code.
      2-1. When implementing the activity on subsurface use as a part of a general partnership (consortium) under a production sharing agreement (contract), the tax accounting policy together with requirements of paragraph 1 of this Article shall contain, in accordance with paragraph 3 of Article 308-1 of this Code, the method of fulfillment of the tax obligation for each of taxes and other obligatory payments, provided for by the legislation of the Republic of Kazakhstan, chosen by the participants of a general partnership and (or) an operator.
      3. The operation of provisions, established in a tax accounting policy, provided for by sub-paragraphs 1), 4) - 6) of paragraph 1 of this Article, shall be applied to a calendar year.
      4. In implementation of thes of activities, which were not mentioned earlier in a tax accounting policy, a taxpayer (a tax agent) shall be obliged to make appropriate adjustments and (or) additions to the tax accounting policy.
      5. Adjustment and (or) addition of a tax accounting policy shall be performed by a taxpayer (a tax agent) in one of the following ways:
      1) by approval of a tax accounting policy or a new accounting policy part, developed in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      2) by making adjustments and (or) additions to a current tax accounting policy or to a part of current tax accounting policy, developed in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      6. It is prohibited for a taxpayer (a tax agent) to make adjustments and (or) additions to a tax accounting policy:
      1) of the tax period, which is under inspection - during the period of integrated and thematic inspections;
      2) of the appealed tax period - during the time of bringing and considering a complaint on a notification of the results of a tax audit and (or) a decision of a higher tax body, made upon the results of consideration of the complaint for the notification, taking into account the restored period for bringing a complaint.
      Footnote. Article 60 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 8. TAX FORMS

Article 61. Tax forms and the order of their composition

      1. Tax forms shall include a tax reporting, a tax application and tax registers.
      2. Tax forms shall be composed by a taxpayer (a tax agent) in paper and (or) electronic formats in Kazakh and (or) Russian languages.
      3. Tax forms, made in paper format, shall be signed by a taxpayer (a tax agent) or his/her representative, and sealed with the stamp of a taxpayer (a tax agent) or his/her representative, who has the stamp with their names in the cases, established by the legislation of the Republic of Kazakhstan.
      Tax forms, composed in an electronic format, except for the tax registers, shall be sealed with the electronic signature of a taxpayer (a tax agent).

Article 62. The shelf life of tax forms

      1. Tax forms shall be kept by a taxpayer (a tax agent) during the limitation period, established by Article 46 of this Code.
      2. In reorganization of a taxpayer, a tax agent - a legal entity, the obligation for keeping tax forms for the reorganized person shall be entrusted to its legal successor (legal successors).

§1. Tax reporting

Article 63. Basic provisions

      1. Tax reporting - is a document of a taxpayer (a tax agent), submitted to a tax service body in accordance with the order, established by this Code, which contains information about a taxpayer, taxation objects and (or) objects, related to taxation, and calculation of the tax obligations, obligatory pension contributions and social contributions.
      Note of the RCLI!
      This wording of paragraph 2 shall operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (for the suspended version see an archived version No. 33 of the Tax Code of the Republic of Kazakhstan).
      2. Tax reporting shall include:
      1) tax declarations, calculations, attachments to them, which are subjected to composition and submission by a taxpayer (a tax agent), on thes of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions, presented by an importer of the declaration on indirect taxes for the imported goods and an application on import of goods and payment of indirect taxes;
      2) reporting on monitoring, presented by large taxpayers, subjected to monitoring;
      3) register of lease (use) agreements, presented by legal entities and individual entrepreneurs, who rent the commercial objects, trade spaces on retail markets to persons, who perform payments to the budget on the one-off coupon basis.
      Forms of tax reporting and regulations of their composition shall be approved by the Government of the Republic of Kazakhstan, taking into account Articles 65 - 67 of this Code, and Article 11-2 of the Law of the Republic of Kazakhstan "On Incorporation of the Code of the Republic of Kazakhstan "On Taxes And Other Obligatory Payments Into The Budget" (The Tax Code)".
      Note of the RCLI!
      This wording of paragraph 3 shall operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (for the suspended version see an archived version No. 33 of the Tax Code of the Republic of Kazakhstan).
      3. Tax reporting, except for the declaration for indirect taxes for imported goods, the application on import of goods and payment of indirect taxes, shall be subdivided into the followings:
      1) the primary reporting - is the tax reporting, presented by a person for a tax period when registration of a taxpayer took place and (or) the tax obligation for certains of taxes and other obligatory payments to the budget, and the obligation for calculation, withholding and transfer of obligatory pension contributions and calculation and payment of social contributions, on which this person is a taxpayer (a tax agent), occurred for the first time, on presentation of the register of lease (use) agreement, provided for by sub-paragraph 3) of paragraph 2 of this Article;
      2) the regular reporting - is the tax reporting, presented by a person for tax periods, following the tax period, when registration of a taxpayer (a tax agent) took place and (or) the tax obligation for certains of taxes and other obligatory payments to the budget, and the obligation for calculation, withholding and transfer of obligatory pension contributions and calculation and payment of social contributions, on which this person is a taxpayer (a tax agent), occurred for the first time, on presentation of the register of lease (use) agreements, specified by sub-paragraph 3) of paragraph 2 of this Article, and upon the results of the tax period - in case of the replacement of taxation objects during the tax period;
      3) additional reporting - is the tax reporting, presented by a person in making adjustments and (or) additions to the earlier presented tax reporting for the tax period, to which these adjustments and (or) additions on thes of taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, on which this person is a taxpayer (a tax agent), are related to, and on information, reflected in the register of lease (use) agreements, provided by sub-paragraph 3) of paragraph 2 of this Article;
      4) additional reporting on the notification - is the tax reporting, presented by a person for making adjustments and (or) additions to the earlier presented tax reporting for the tax period, when a tax body revealed violations upon the results of the in-house audit for thes of taxes and other obligatory payments to the budget, for obligatory pension contributions and social contributions, on which this person is a taxpayer (a tax agent), and on information, reflected in the register of lease (use) agreements, provided for by sub-paragraph 3) of paragraph 2 of this Article;
      5) liquidation reporting - is the tax reporting, presented by a person on liquidation or reorganization of a taxpayer, for thes of taxes and other obligatory payments to the budget, for obligatory pension contributions and social contributions, on which this person is a taxpayer (a tax agent), on removal from the register for the value-added tax, and on information, reflected in the register of lease (use) agreements, provided for by sub-paragraph 3) of paragraph 2 of this Article;
      Footnote. Article 63 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 64. Specifics of making the tax reporting

      1. In the cases, specified by this Code, taxpayers, performing thes of activities, for which various tax conditions are established, shall compose the tax reporting on each of activity.
      The taxpayers, who, during a calendar year, switched from the special tax regime for legal entities-producers of agricultural products and rural consumer cooperatives to the generally accepted order, shall compose the tax reporting separately for each period of implementation in the mentioned calendar year for:
      the special tax regime;
      the generally accepted order.
      2. Subsoil users, who are obliged to keep the separate tax accounting, provided by this Code, shall compose the tax reporting in the order, specified by this Code.
      3. If a taxpayer is related to the groups of taxpayers, for whom there are various tax forms, established by the Government of the Republic of Kazakhstan, this taxpayer shall make the tax forms, established for each group of taxpayers, which he/she is related to.
      Footnote. Article 64 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012).

Article 65. Specifics of establishment of the tax reporting on the corporate income tax

      1. The Government of the Republic of Kazakhstan approves the forms of declaration for corporate income tax with attachments to this declaration separately for each of the following groups of taxpayers:
      1) The insurance and reinsurance companies, mutual insurance companies;
      2) The non-commercial organizations;
      3) The organizations, working in social area;
      4) The subsoil users, working under a production sharing agreement (a contract) or a subsoil use contract, approved by the President of the Republic of Kazakhstan, the provisions of which provide stability of the tax regime;
      4-1) subsoil users, working under the subsoil use, except for those:
      who conduct mining operations for widespread minerals, groundwater and therapeutic mud;
      who are mentioned in sub-paragraph 4) of this paragraph;
      5) other payers of the corporate income tax, who are not mentioned in sub-paragraphs 1) - 4) of this paragraph, for whom the obligation for composition and presentation of the declaration is established.
      2. The declaration on the corporate income tax is designed for taxpayers of the corporate income tax to declare income, included in the total annual income, expenses, which are attributed to deduction, their correction, taxable income (loss), income and expenses, reducing the taxable income, postponed losses, calculated amount of tax for a tax period and the amount of taxes, reducing amount of the calculated tax for a tax period.
      Attachments to the declaration for the corporate income tax are designed for the detailed reflection of the information on calculation of the tax obligation, used by the tax service bodies for the purposes of the tax audit.
      The forms of attachments to the declaration for the corporate income tax may contain the following information:
      1) on income (losses) from the value increase;
      2) on income and expenses on doubtful obligations, doubtful requirements, written-off of obligations and requirements, including in the context of creditors and debtors;
      3) on income and expenses of remunerations. The form of this attachment on remunerations may by established in the context of receivers of remunerations;
      4) on income and expenses from realization of goods, execution of works, provision of services. The form of this attachment may be established in the context of providers for persons who are not the payers of the value-added tax;
      5) on income (losses) from derivative financial instruments, except for the swap. The form of the attachment may be established in the context of contractors;
      6) on management and general administrative expenses of a nonresident;
      7) on investment tax preferences;
      8) on income and expenses, reducing the taxable income. The form of this attachment may be established in the context of receivers of gratuitously transferred property, sponsorship;
      9) on depreciation, repair costs and other deductions from the fixed assets;
      10) on income from foreign sources, on amounts of profit or a part of profit of the companies, registered or located in the countries with preferential taxation, and on amount of paid foreign tax and the set-off. The form of this attachment may be established in the context of persons, from whom these profits are received;
      11) on calculation of the tax obligation for the received standard tax benefits;
      12) on income, which is subjected to exemption from taxation in accordance with the international agreements;
      13) on verification of a report on income and expenses with a declaration on the corporate income tax;
      14) on income (losses) from swap. The form of this attachment may be established in the context of contractors;
      15) on taxation objects and (or) objects, related to taxation, the tax obligation in the context of founders of an entrusted administration of property and (or) beneficiary in other cases of an entrusted administration;
      16) on management and general administrative expenses of a resident, which are deductible by permanent establishments of a resident, located outside the Republic of Kazakhstan;
      17) on the taxation objects and (or) objects, related to taxation, on calculation of the corporate income tax for thes of activities, in respect of which there is a separate accounting, established in accordance with Article 58 and (or) paragraph 4 of Article 448 of this Code;
      18) the information, which shall be reflected in an annual financial reporting of a payer of the corporate income tax, composed in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      3. For certain categories of taxpayers, in addition to the information, mentioned in paragraph 2 of this Article, the forms of attachments to a declaration on the corporate income tax may contain the following information:
      1) for insurance, reinsurance companies, mutual insurance companies - on income from reduction of the size of created provisions (reserves) and expenses for creation of provisions (reserves);
      2) for noncommercial organizations:
      on income and expenses for gratuitously received (transferred) property, for entrance fees, for membership fees. The form of this attachment may be established in the contexts of persons who transferred and received gratuitously property, and in the context of persons who received and transferred entrance fees, membership fees;
      on expenses for maintenance of noncommercial organizations;
      on expenses for organizing and holding events;
      3) for subsurface users, working under the contracts on subsoil use or the production sharing contracts:
      for contributions to the Fund for Liquidation of Mining Consequences;
      for distribution of net income and net income, aimed at increase of the fixed capital of a resident legal entity with saving a share of participation of each founder, participant;
      for taxation objects and (or) objects, related to taxation, for calculation of the corporate income tax separately for each contract on subsoil use;
      for specifics of calculation of taxation objects and (or) objects, related to taxation, amounts of the tax for the contracts on subsurface use, provided for by Article 308-1 of this Code;
      on expenses for geological studies, exploration and preparatory works for extraction of natural resources and other costs of subsurface users;
      4) for the banks and the organizations, performing certains of banking operations on the basis of the license, and the persons, who perform such operations without the license within the powers, established by the legislative acts of the Republic of Kazakhstan:
      for income from the realization of goods, execution of works, provision of services in the context of thes of goods, works, services;
      for income from reducing the size of the created provisions (reserves) and expenses for creation of provisions (reserves) (for the persons, who have the right for deduction in accordance with Article 106 of this Code);
      for the contributions to guarantee the deposits of individuals.
      4. The government of the Republic of Kazakhstan approves the following forms of calculation of the amounts of the corporate income tax:
      1) calculation of the advance amounts on the corporate income tax, payable for the period before submission of the declaration;
      2) calculation of the amount of advances on the corporate income tax, payable for the period after submission of the declaration;
      3) calculation of the corporate income tax, withheld from the source of payment from the income of a resident;
      4) calculation of the corporate income tax, withheld from the source of payment from the income of a nonresident.
      5. The calculations, listed in sub-paragraphs 1), 2) of paragraph 4 of this Article, shall be designed for calculation of the amounts of advances on the corporate income tax for the current tax period and shall be presented by the taxpayers, for whom there is the obligation for calculation and payment of the amounts of advances on the corporate income tax, established by this Code.
      6. The calculations, listed in sub-paragraphs 3), 4) of paragraph 4 of this Article, shall be presented by tax agents for providing information of calculation of the tax obligation, used for the tax audit.
      The form of an attachment to the calculation for the corporate income tax, which is withheld at the source of payment from the income of a resident, may contain, in the context of receivers of income, the following information on:
      1) the amount of the payable income;
      2) the amount of the paid income;
      3) the rate of the corporate income tax;
      4) the amount of the tax, withheld at the source of payment;
      5) the amount of the factually paid tax.
      The form of an attachment to the calculation for the corporate income tax, withheld at the source of payment from the income of a nonresident, may contain, in the context of receivers of income, the following information on:
      1) the general identity information of a taxpayer;
      2) taxation objects, including those, exempted from taxation in accordance with international agreement;
      3) the tax rates;
      4) the application of international agreements;
      5) the period of activity in the Republic of Kazakhstan;
      6) the amount of the calculated tax in accordance with this Code or an international agreement.
      Footnote. Article 65 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2012); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2012); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 66. Specifics of establishment of the tax accounting for the value-added tax

      Note of the RCLI!
      This wording of Article 66 operates up to 01.01.2016 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (for the suspended version see an archived version No. 7 of the Tax Code of the Republic of Kazakhstan).

      1. The declaration for the value added tax shall be designed for calculation of the amount of the value-added tax by payers of the value-added tax and for reflecting information on:
      1) the amount of taxable and tax-free turnover;
      2) the amount of taxable import;
      3) the amount of the purchase of goods, execution of works, and provision of services in the Republic of Kazakhstan;
      4) the amount of the value-added tax which shall be set off;
      5) the chosen method of attributing the amount of the value-added tax to the set off and the results of its application;
      6) the excess of the amount of the value-added tax, which shall be set off over the amount of the charged value-added tax, including at the end of a tax period;
      7) the calculation of the amount of the value-added tax.
      The declaration for the value-added tax may contain a request to refund an excess of the amount of the value-added tax, which shall be set off, over the amount of the charged value-added tax.
      At that, the request to refund an excess of the amount of the value-added tax, which shall be set off, over the amount of the charged value-added tax, may be reflected in the primary, regular and (or) liquidation declarations for the value-added tax.
      2. Attachments to the declaration for the value-added tax shall be designed for the detailed reflection of the information on calculation of the tax obligation, used by tax service bodies for the tax audit.
      The forms of the attachment to the value-added tax may contain the following information on:
      1) sales turnover, taxable at zero rate;
      2) sales turnover, exempted from the value added tax;
      3) import of goods, for which the deadline for payment of the value-added tax was changed;
      4) import of goods, the value-added tax for which is paid by the method of the set-off;
      5) the works and services, purchased from a nonresident, and the amount of the value-added tax, payable for this nonresident;
      6) correction of the size of the taxable turnover and the amount of value-added tax, attributed to the set-off;
      7) invoices for purchased goods, executed works, provided services and for the realized goods, executed works, provided services in the context of providers and buyers;
      8) documents on the output of goods from the state material reserve, written out by an authorized state body for State Material Reserves, in the context of customers;
      9) amounts of the value-added tax, presented for refund.
      3. Number of cells to specify the invoice shall not be limited in the presentation in an electronic format of:
      1) the register of invoices (documents for issuance of the goods from the state material reserve) for purchased goods, works, services during the reporting tax period;
      2) the register of invoices for realized goods, works, services during the reporting tax period.

Article 67. Specifics of establishment of the tax accounting for the individual income tax and the social tax

      1. The Government of the Republic of Kazakhstan approves the following forms of the declaration for the individual income tax and the social tax with attachments to this declaration:
      1) The declaration for the individual income tax and the social tax on the citizens of the Republic of Kazakhstan for the following groups of taxpayers, who are the tax agents of:
      the legal entities, which are residents of the Republic of Kazakhstan, except for the legal entities, applying a special tax regime for subjects of small business on the basis of the simplified declaration;
      the nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment;
      individual entrepreneurs, except for those, applying the special tax regimes for peasant and farmers, for subjects of small business on the basis of the simplified declaration;
      the private notaries;
      the lawyers;
      the private enforcement agents;
      2) the declaration for the individual income tax and the social tax on foreigner and stateless persons for the following groups of taxpayers, who are the tax agents of:
      the legal entities-residents of the Republic of Kazakhstan, except for the legal entities, applying the special tax regime for subjects of small business on the basis of the simplified declaration;
      the nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment;
      the individual entrepreneurs, except for those, applying the special tax regimes for peasants and farmers, for subjects of small business on the basis of the simplified declaration;
      3) the declaration for the individual income tax with attachments to this declaration separately for each group of taxpayers:
      the individual entrepreneurs, except for those, applying the special tax regimes for peasants and farmers, for subjects of small business on the basis of the patent or the simplified declaration, the individuals, who are not the citizens of the Republic of Kazakhstan;
      the individuals, who are mentioned in paragraph 2 of Article 185 of this Code;
      the individuals, who received income, which is not taxable at the source payment (except individual entrepreneurs), the taxpayers, who received income outside the Republic of Kazakhstan, the individuals, who have money at foreign bank accounts, located outside the Republic of Kazakhstan.
      2. The declaration for the individual income tax and the social tax on the citizens of the Republic of Kazakhstan for tax agents shall be designed for reflection of information on:
      1) The income of the individuals, from whom the individual income tax, obligatory pension contributions, the social tax, and social contributions are calculated and withheld.
      2) The amount of an excess in the charged social security benefits over the amount of contributions to the State Social Insurance Fund;
      3) The amounts of the social benefits for temporary disability, paid by the state bodies;
      4) The amounts of the charged tax obligations, obligatory pension contributions, social contributions.
      Attachments to the declaration for the individual income tax and the social tax shall be designed for detailed reflection of the information on calculation of the tax obligation, used by tax service bodies for the purposes of the tax audit.
      The forms of the attachments to the declaration for the individual income tax and the social tax may contain the information on amounts of the calculated individual income tax and social tax for structural units, for the list of employees’ income, taxable and nontaxable with the social tax, calculation of the social tax by taxpayers for the activity, performed under a contract on subsurface use.
      The provisions of this paragraph shall also be applied to the declaration for the individual income tax and the social tax for tax agents with respect to the citizens of the Republic of Kazakhstan, presented for structural units of a legal entity.
      3. The declaration for the individual income tax and the social tax on foreigners and stateless persons for tax agents shall be designed for reflecting the information on:
      1) Income of foreigners and stateless persons, from whom the individual income tax, obligatory pension contributions, the social tax, and social contributions are calculated and withheld;
      1-1) The amounts of excess in the charged social benefits over the charged amount of contributions to the State Social Insurance Fund;
      2) The amounts of charged but not paid income of foreigners and stateless persons, which are attributed to the set off by a tax agent, from which the individual income tax is calculated;
      3) The amounts of the charged and payable to the budget taxes and other obligatory payments, and obligatory pension contributions, social contributions in accordance with this Code and an international agreement.
      Attachments to the declaration for the individual income tax and the social tax shall be designed for detailed reflection of the information on calculation of the tax obligation, used by tax service bodies for the purposes of the tax audit.
      The forms of the attachments to the declaration for the individual income tax and the social tax may contain the information on calculation of the social tax by taxpayers for the activity, performed under each subsurface use contract, on calculation of the individual income tax from income of foreigners and stateless persons, who are the residents and nonresidents, on calculation of the individual income tax and the social tax including those for structural units.
      At that, the attachments on calculation of the individual income tax from income of foreigners and stateless persons, who are the residents and nonresidents in the context of receivers of income may mention the following information on:
      1) The general identity information of a taxpayer;
      2) The taxation objects, including those tax-exempted in accordance with the international agreement;
      3) The rates of the tax;
      4) An application of foreign agreements;
      5) A period of activity in the Republic of Kazakhstan;
      6) The amount of the charged individual income tax and the social tax, which include those for structural units, in accordance with this Code or an international agreement;
      7) The tax deductions;
      The provisions of this paragraph shall also be applied to the declaration for the individual income tax and the social tax for tax agents with respect to foreigners and stateless persons, presented for structural units of a legal entity.
      4. The declaration for the individual income tax for individual entrepreneurs shall be presented by individual entrepreneurs, except for those, applying the special tax regimes for peasants and farmers, for subjects of small business on the basis of the patent or the simplified declaration.
      This declaration shall be designed for declaring by taxpayers:
      The income, included into the total annual income;
      The expenses, attributed to the set-offs;
      A correction of income and the set-offs;
      The taxable income (loss);
      The income and expenses, reducing the taxable income;
      The postponed losses, the charged amount of the tax.
      Attachments to the declaration for the individual income tax shall be designed for reflection of the information on calculation of the tax obligation, used by tax service bodies for the tax audit.
      The forms of the attachments to the declaration for the individual income tax may contain the following information:
      1) Mentioned in sub-paragraphs 1) - 6), 8) - 10), 12) - 15) of paragraph 2 of Article 65 of this Code;
      2) on the tax deductions, established by paragraph 1 of Article 166 of this Code.
      5. The declaration for the individual income tax and property shall be presented by the individuals, listed in paragraph 2 of Article 185 of this Code.
      This declaration shall be designed for taxpayers to declare the received income, calculated and paid amount of the individual income tax for income, which is nontaxable at the source of payment, amount of the charged individual income tax on the income, which is taxable at the source of payment.
      Attachments to the declaration for the individual income tax and property shall be intended for the detailed reflection of the information on calculation of the tax obligation, presence of ownership of the property, located in the Republic of Kazakhstan and (or) outside the Republic, used by tax service bodies for the purposes of the tax audit.
      The forms of the attachments to the declaration for the individual income tax and property may contain the following information on:
      1) The income, taxable at the source of payment;
      2) The property and other income;
      3) The property which is under ownership.
      6. The declaration for the individual income tax for other groups of individuals shall be presented by the individuals, who are not mentioned in paragraphs 4 and 5 of this Article, including those who received income, which is nontaxable at the source of payment (except for individual entrepreneurs), and by the individuals, who have money at foreign bank accounts, located outside the Republic of Kazakhstan.
      This declaration shall be intended for declaring of income of individuals, tax deductions, and calculations of amount of the individual income tax.
      Attachments to the declaration shall be designed for the detailed reflection of the information ons and amounts of income, in calculation of the tax obligation, used by tax service bodies for purposes of the tax audit.
      The forms of the attachments to the declaration may contain the following information on:
      1) The property and other income;
      2) The income of a private notary, a private enforcement agent, and a lawyer;
      3) The income, received from sources in foreign states, including on income, received in a state with a preferential taxation, and on amounts of the paid foreign tax and the set-off of a foreign tax. The form of this attachment may be established in the context of persons from whom this income is received.
      4) Income, subjected to tax exemption in accordance with the international agreements;
      5) Income of the individuals, who have money at foreign bank accounts, located outside the Republic of Kazakhstan, and on presence of money on such accounts.
      Footnote. Article 67 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 68. The order of submission of the tax reporting

      1. The tax reporting shall be submitted by a taxpayer (a tax agent) to tax bodies in the order and within the period, established by the Code.
      2. If a taxpayer is attributed to the group of taxpayers, for whom various forms of tax reporting are established by the Government of the Republic of Kazakhstan, this taxpayer shall be obliged to submit the tax reporting in the forms, specified for each group of taxpayers, he is related to.
      3. Taxpayers (tax agent) shall have the right to submit the tax reporting, unless otherwise provided for by this Article, to the appropriate tax bodies optionally:
      1) in person:
      for tax reporting - in a paper format;
      for reporting on monitoring - in an electronic format, providing the computer processing of information;
      2) (by mail) by a registered letter with a notification - in a paper format;
      3) in an electronic format, providing the computer processing of information, - by means of a system of receiving and processing of tax reporting.
      Provisions of sub-paragraph 2) of this paragraph shall not be applied to the reporting:
      on monitoring, which is submitted by major taxpayers, subjected to monitoring;
      on the value-added tax, submitted by the taxpayers, who are the payers of the value-added tax after their removal from the register for the value-added tax under a decision of a tax body in accordance with paragraph 4 of Article 571 of this Code.
      The provision of sub-paragraph 3) of this paragraph shall not be applied to the reporting for the value added tax, submitted by the taxpayers, who are not payers of the value-added tax after their removal from the register for the value-added tax under a decision of a tax body in accordance with paragraph 4 of Article 571 of this Code.
      4. The tax reporting shall be submitted in duplicate if it was submitted in person in a paper format. One copy of the tax reporting shall be returned to a taxpayer (a tax agent) with a mark of tax body.
      5. The structure of an electronic format of the tax reporting, the software for composition and submission of the tax reporting in electronic form and update of this software shall be placed on the official web site of an authorized body on the regular basis no later than twenty working days before the deadline for submitting the tax reporting.
      6. After submission of the liquidation tax reporting a taxpayer (a tax agent) shall not have the right to submit the further tax reporting to a tax body, except for the additional and (or) the additional reporting on the notification, unless otherwise provided for by this paragraph.
      In case a tax payer (a tax agent) changes a decision on liquidation, reorganization by separation after the completion of the tax audit, the liquidation tax reporting submitted for the incomplete tax period shall be equated with the next tax reporting for a tax period. For the last tax periods from the date of submission of the liquidation tax reporting a taxpayer shall be obliged to submit the tax reporting to the appropriate tax bodies in the order and within the period, established by this Code.
      7. If there are no any taxation objects, the tax reporting shall not be submitted, except for the tax reporting, provided by Article 149, paragraph 1 of Article 162, Articles 185, 270, 364, 437 of this Code.
      The obligation for submission of the tax reporting on the value-added tax shall be applied to the taxpayers, who are registered as taxpayers of the value-added tax.
      The obligation for submission of the tax reporting on excise tax shall be applied to the taxpayers, registered in tax bodies in accordance with sub-paragraphs 1), 2), 3), and 5) (except for the wholesale realization of tobacco products) of paragraph 1 of Article 574 of this Code.
      8. Attachments to declarations, calculations shall not be submitted if there is no data which shall be reflected in them.
      Footnote. Article 68 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 69. The order of revocation of a tax reporting

      1. Unless otherwise provided by this paragraph, a taxpayer (a tax agent) shall submit a tax application on revocation of the tax reporting, mentioned in paragraphs 2 and 3 of this Article, to a tax body at the place of registration of the taxpayer (a tax agent).
      In case of revocation of a tax reporting, which is recognized as not submitted in accordance with sub-paragraph 2) of paragraph 5 of Article 584 of this Code, a taxpayer (a tax agent) shall submit a tax application on revocation of the tax reporting to a tax body at the place of submission of this reporting.
      The tax reporting shall be subjected to revocation by a tax service body from the system of receiving and processing of tax reporting on the basis of the tax application of a taxpayer (a tax agent), and in the case, mentioned in the third part of paragraph 2 of this Article, taking into account all the additional forms of the tax reporting, submitted for the stated tax period.
      Simultaneously with the tax application on revocation of a tax reporting, submitted on the basis of sub-paragraph 2) of paragraph 2 of this Article, a taxpayer (a tax agent) shall be obliged to submit the tax reporting in accordance with paragraph 2 of Article 68 of this Code.
      Revocation of a tax reporting, submitted for a tax period, mentioned in a tax application, shall be performed by the following methods:
      1) method of removal, in which an earlier submitted tax reporting shall be removed from the central system;
      2) method of changing, in which the changes, declared by a taxpayer (a tax agent) shall be made in the earlier submitted tax reporting.
      2. The method of removal is used for revocation of the following tax reporting:
      1) the liquidation tax reporting in case of the decision, made by a taxpayer in accordance with Article 37, 38, 40 - 43 of this Code to resume the activities before the tax audit;
      2) the tax reporting, submitted by a taxpayer in violation of the conditions of paragraph 2 of Article 68 of this Code;
      3) the tax reporting, submitted by a taxpayer, who, in accordance with this Code, does not have the obligation to submit a tax reporting;
      4) the tax reporting, which is recognized as not submitted in accordance with paragraph 5 of Article 584 of this Code.
      Unless otherwise provided by this paragraph, in revocation of a tax reporting by the method of removal in the accounts of a taxpayer (a tax agent) shall be subjected, by a tax body at the place of registration, to reversal of the calculated (reduced) amounts of taxes, other obligatory payments to the budget, obligatory pension contributions and social contributions on the revoking tax reporting.
      In case of revocation of the tax reporting, which is recognized as not submitted in accordance with sub-paragraph 2) of paragraph 5 of Article 584 of this Code, the reversal of the amounts, listed in the first part of this paragraph, shall be performed by a tax body at the place of submission of this reporting.
      A tax body performs the revocation of a tax reporting without a tax application by the method of removal in non-fulfillment of the notification by a taxpayer (a tax agent), mentioned in paragraph 4 of this Article. The revocation shall be performed within two working days from the date of expiry of the deadline, set for fulfillment of this notification.
      3. The method of changing shall be used for revocation of the tax reporting:
      1) which does not specify or incorrectly specifies the code of currency;
      2) which does not specify or incorrectly specifies the number and (or) the date of a contract on subsurface use;
      3) which does not specify or incorrectly specifies the status of residency;
      3-1) which incorrectly specifies the code of a tax body;
      3-2) which incorrectly specifies a tax period;
      3-3) which incorrectly specifies the of tax reporting;
      4) the liquidation tax reporting in case a taxpayer makes the decision in accordance with Articles 37, 38, 40 - 43 of this Code on resumption of the activity after the tax audit.
      In revocation of a tax reporting by the method of changing the personal accounts of a taxpayer (a tax agent) by a tax body at the place of registration shall be subjected to reversal of the calculated (reduced) amounts, reflected in the revoking tax reporting with further reflection in the personal account of the information on tax reporting, taking into account the declared changes and (or) additions.
      4. If a taxpayer (a tax agent) does not submit a tax application on revocation of the tax reporting, mentioned in sub-paragraphs 2) - 4) of paragraph 2 of this Article, a tax body, within the established period, shall send to a taxpayer (a tax agent) the notification, provided for by sub-paragraph 9) of paragraph 2 of Article 607. The notification shall be subjected to fulfillment within the period, established by paragraph 2 of Article 608 of this Code.
      5. It is prohibited for a taxpayer (a tax agent) to revoke an erroneously submitted tax reporting:
      1) of a tax period, which is under inspection - in the period of complex and thematic inspections on thes of taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, mentioned in the instructions for implementation of the inspections;
      2) of an appealed tax period - in the period of consideration of the complaint on a notification upon the results of a tax audit and (or) a decision of a higher body, made upon the results of considering the complaint on the notification, including the restored deadline for submission of the complaint.
      6. Tax bodies shall be obliged within five working days from the date of submission of the tax application, mentioned in paragraph 1 of this Article, to perform the revocation of a tax reporting and send to a taxpayer (a tax agent) a notification on revocation of a tax reporting in the form, established by an authorized body.
      Footnote. Article 69 in the wording of the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); as amended by the Laws of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 70. Making adjustments and additions to a tax reporting

      1. Making adjustments and additions to a tax reporting shall be performed by a taxpayer (a tax agent) via composing the additional tax reporting for the tax period which these adjustments and additions refer to.
      2. The additional tax reporting shall specify:
      1) the disparity between the amounts, mentioned in an earlier submitted tax reporting and the actual tax obligation for a tax period - upon changing the amounts in the earlier submitted tax reporting;
      2) a new value - upon changing of the rest of the data in the earlier submitted tax reporting.
      3. When submitting the additional and (or) the additional on the notification tax reporting, the revealed by a taxpayer (a tax agent) or a tax body upon the result of the in-house audit in accordance with Articles 586, 587 of this Code, the amounts of taxes, other obligatory payments, obligatory pension contributions and social contributions shall be transferred to the budget without bringing the taxpayer (tax agent) to the responsibility, established by the Laws of the Republic of Kazakhstan.
      4. A taxpayer (a tax agent) shall have the right to submit the additional liquidation tax reporting before the beginning of a tax audit, performed by a tax body under the tax application of the taxpayer on liquidation, reorganization by separation or termination of the activity.
      5. It is prohibited for a taxpayer (a tax agent) to make adjustments and additions to the appropriate tax reporting:
      1) of a tax period, which is under inspection - in the period of implementation (taking into account extension and suspension) of complex and thematic inspections on thes of taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, listed in the instructions for implementation of the tax audit;
      2) of an appealed tax period - in the period of consideration of the complaint on the notification on the results of a tax audit and (or) a decision of a higher body, made upon the results of considering the complaint for a notification, including the restored deadline for submission of the complaint for thes of taxes and other obligatory payments to the budget, obligatory pension contributions and social contributions, listed in the complaint of a taxpayer (a tax agent);
      3) in the part of requirements for the refund of the value-added tax.
      Footnote. Article 70 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010). 

Article 71. Extension of the deadline for submission of the tax reporting by an authorized body

      1. A major taxpayer, subjected to monitoring, shall have the right no later than ten working days from the date of expiry of the deadline for submission of the reporting on monitoring, specified in Article 624 of this Code, to submit to an authorized body the tax application on extension of the deadline for submission of this reporting.
      2. An authorized body upon the results of consideration of the tax application, mentioned of paragraph 1 of this Article, shall be obliged no later than five working days after its receipt to make a decision on refusal to extend the deadline for submission of the reporting on monitoring or on extension of the deadline for submission of the reporting on monitoring.
      3. The decision on refusal to extend the deadline for submission of the reporting on monitoring shall be made if a major taxpayer, subjected to monitoring, has tax arrears as of the date of submission of his tax application, which is mentioned in paragraph 1 of this Article, on the basis of the certificate on absence (presence) of tax arrears, arrears of obligatory pension contributions and social contributions or the fact of violation of the deadlines for submission of the reporting on monitoring for previous twelve-month period.
      4. An authorized body shall have the right to extend the deadline for submission of the reporting on monitoring for the period no longer than three months from the deadline, set for submission of this reporting.
      5. If an authorized body decided to refuse to extend the deadline for submission of the reporting on monitoring, a major taxpayer, who is subjected to monitoring, shall submit this reporting in the order, established by this Code.
      6. If mistakes are revealed in the software of a tax service bodies which have an impact on timeliness of submission of the tax reporting in electronic format, the authorized body shall extend the deadline for submission of this reporting for no longer than three months from the deadline, set for submission of this reporting.
      Footnote. Article 71 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009). 

Article 72. Extension of the deadline for submission of the tax reporting by a tax body

      1. A tax body under an application of a taxpayer (a tax agent) shall extend the deadline for submission of the tax reporting provided that it shall be presented in electronic form, except for the reporting on monitoring and tax reporting on indirect taxes on import of goods to the territory of Republic of Kazakhstan from the territory of the Customs Union member-states.
      2. The tax application for extension of the deadline for submission of the tax reporting shall be submitted in duplicate by a taxpayer (a tax agent) to a tax body at the place of the registration before the expiry of the deadline, set by this Code, for submission of the tax reporting. One copy of the tax application shall be returned to the taxpayer (tax agent) with a mark of a tax body.
      Extension of the deadline for submission of the tax reporting shall be applied to the tax reporting, presented by a tax payer (tax agent) within a calendar year, in which the application on extension of the deadline for submission of the tax reporting is submitted to a tax body.
      3. The deadline for submission of the tax reporting shall be extended for a period:
      1) on the corporate income tax or the individual income tax - no longer than thirty calendar days from the deadline, set for submission of the declaration;
      2) on others of taxes, other obligatory payments to the budget, pension contributions and social contributions - no longer than fifteen calendar days from the deadline, established for submission of the declaration and (or) settling.
      Extension of the deadline for submission of the tax reporting shall not be applied to the deadline for submission of the calculation of advances, provided for by Article 141 of this Code.
      4. Extension of the deadline for submission of the tax reporting shall not change the deadline for payment of taxes, other obligatory payments to the budget, pension contributions and social contributions.
      Footnote. Article 72 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 73. The order of suspension (extension, resumption) of submission of the tax reporting by a taxpayer (a tax agent)

      1. A taxpayer (a tax agent), in the order, established by this Article, shall have the right on the basis of the tax application on suspension (extension, resumption) of submission of the tax reporting:
      1) to suspend submission of the tax reporting;
      2) to extend the deadline for submission of the tax reporting;
      3) to resume submission of the tax reporting, unless otherwise provided for by this Article.
      A taxpayer (a tax agent), in case of a decision to suspend the activity, shall submit to a tax body at his/her location the application on suspension (extension, resumption) of submission of the tax reporting for the forthcoming period. The period of suspension of submission of the tax reporting in view of its extension shall not exceed the period, established by Article 46 of this Code.
      Simultaneously with the tax application on suspension (extension, resumption) of submission of the tax reporting, a taxpayer (a tax agent) shall submit the tax reporting for thes of taxes, other obligatory payment to the budget, obligatory pension contributions and social contributions from the beginning of a tax period to the date of suspension of the activity, mentioned in this application.
      If the deadline for submission of the next tax reporting comes after submission of a tax application, the submission of this next tax reporting shall be performed before the date of submission of the tax application.
      2. Within three working days from the date of receipt of the tax application on suspension (extension, resumption) of submission of the tax reporting, a tax body shall make a decision on suspension of submission of the tax reporting or on refusal to suspend submission of the tax reporting in the form, established by an authorized body.
      3. The decision on suspension of submission of the tax reporting or on refusal to suspend suspension of submission of the tax reporting shall be presented to a taxpayer (a tax agent) personally against signature or other way which confirms the fact of sending and receiving.
      4. The decision on refusal to suspend submission of the tax reporting shall be made if a taxpayer (a tax agent) has tax arrears, arrears of obligatory pension contributions, social contributions as on the date of submission of the application or if a taxpayer (a tax agent) does not submit the tax reporting, mentioned in paragraph 1 of this Article.
      5. In case if a tax body makes a decision on refusal to suspend submission of the tax reporting, a taxpayer (a tax agent) shall submit the tax reporting in the order, established by this Code.
      6. The decision on suspension of submission of the tax reporting, received by a taxpayer (a tax agent), shall be the ground for not submitting the tax reporting for the period for suspension of submission of the tax reporting, specified in the tax application on suspension (extension, resumption) of submission of the tax reporting, unless otherwise provided by this Article. Non-submission of the tax reporting, mentioned in this paragraph, shall be equated with submission of the tax reporting with zero rates.
      7. In case if a taxpayer (a tax agent) makes a decision on resumption of the activity before expiry of the period of suspension of the activity, this taxpayer (tax agent) shall submit, to a tax body at his/her location before expiry of the period of suspension, the tax application on suspension (extension, resumption) of submission of the tax reporting, and the tax reporting in the order, established by this Code.
      8. After expiry of the period of suspension of the activity, specified in the decision on suspension of submission of the tax reporting, a taxpayer (a tax agent) shall be obliged to submit the tax reporting to a tax body in the order, established by this Code, unless otherwise provided by paragraph 9 of this Article.
      9. A taxpayer shall have the right no later than the date of expiry of current period of suspension of submission of the tax reporting to submit the tax application on suspension (extension, resumption) of submission of the tax reporting.
      In submission of the tax application on suspension (extension, resumption) of submission of the tax reporting, this period shall be extended for the period, specified in this application, taking into account the provision of paragraph 1 of this Article. The tax application shall be the ground for not submitting the tax reporting for forthcoming tax periods until the date of resumption of the activity if there is a mark that a tax body received such application.
      10. In case a tax body reveals the facts of resumption of the activity by a taxpayer (a tax agent) in the period of its suspension, the tax bodies shall recognize the period of suspension of the tax reporting as terminated from the date of resumption of the activity without notification of these persons.
      For purposes of this paragraph, the resumption of the activity is when a taxpayer (a tax agent), who suspended the activity, begins to perform the activity, leading to appearance of the obligation to calculate and pay taxes and other obligatory payments to the budget in accordance with the Special part of this Code.
      11. The provisions of this Article shall not be applied to the following taxpayers:
      1) individual entrepreneurs, who apply the special tax regimes for peasants and farmers, for subjects of small business on the basis of the patent.
      2) individual entrepreneurs or legal entities, who are payers of the tax on gambling industry and (or) fixed tax;
      3) legal entities, applying the special tax regime for legal entities-producers of agricultural products, aquaculture production (fish farming) and the rural consumer cooperatives.
      12. The provisions of this Article shall not be applied to the order and deadlines for submission of the tax reporting on property taxes for property, vehicles and land, for payment for land use.
      Footnote. Article 73 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.01.2010 No. 242-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 74. The order of suspension (extension, resumption) of submission of the tax reporting by an individual entrepreneur, using a special tax regime for subjects of small business on the basis of a patent

      1. A taxpayer (a tax agent), in the order, established by this Article, shall have the right on the basis of the application on suspension (extension, resumption) of submission of the tax reporting:
      1) to suspend submission of the tax reporting;
      2) to extend the period of suspension of submission of the tax reporting.
      In case if an individual entrepreneur, who applies the special tax regime on the basis of the patent, suspends his/her activity, the application on suspension (extension, resumption) of submission of the tax reporting for forthcoming period shall be submitted to a tax body at the location until the expiry of the patent. The deadline for submission of the tax reporting in view of its extension must not exceed the deadline, established by Article 46 of this Code.
      2. The decision of a tax body on suspension of submission of the tax reporting shall be made in the form, established by an authorized body, on the date of submission of the tax application.
      3. The decision on suspension of submission of the tax reporting shall be presented to a taxpayer or his/her representative personally against signature or in other way which confirms the fact of sending and receiving.
      3-1. The decision on refusal to suspend submission of the tax reporting shall be made if a taxpayer (a tax agent) has tax arrears, arrears of obligatory pension contributions, social contributions as on the date of submission of the application or a taxpayer (a tax agent) does not submit the tax reporting, mentioned in paragraph 1 of this Article.
      4. The decision on suspension of submission of the tax reporting shall be the basis for not submitting the estimation for receiving the patent for the period from the date, specified in the tax application on suspension of submission of the tax reporting, to the date of resumption of the activity.
      5. A taxpayer shall be recognized as the one, who resumed the activity after expiry of the period of the activity suspension, unless otherwise provided by this Article.
      6. A taxpayer shall have the right no later than the date of expiry of the period of suspension of submission of the tax reporting to submit a tax application on suspension (extension, resumption) of submission of the tax reporting to a tax body. This application shall be the basis for not presenting the estimation for receiving the patent until the date of the activity resumption, mentioned in the application.
      7. A taxpayer shall have the right to resume the activity before expiry of the period of the activity suspension by submission of the estimation for receiving the patent to tax bodies from the date of the activity resumption.
      8. In the submission of estimation for receiving the patent in the period of suspension of submission of the tax reporting, a taxpayer shall be recognized as the one, who resumed the activity from the date of beginning of the activity, mentioned in this estimation.
      9. In the submission by a taxpayer of the tax application or estimation for receiving the patent, mentioned in paragraphs 6, 7 of this Article, the activity of the taxpayer shall be recognized as resumed from the date of expiry of the period of the activity suspension, specified in the application on suspension (extension, resumption) of submission of the tax reporting.
      9-1. In case a tax body reveals the fact of resumption of the activity by a taxpayer (a tax agent) in the period of its suspension, the tax bodies shall recognize the period of suspension of the tax reporting as terminated from the date of the activity resumption with a written notice to such taxpayer (tax agent).
      For the purposes of this paragraph, the resumption of the activity is when a taxpayer (a tax agent), who suspended the activity, begins to perform the activity, leading to appearance of the obligation to calculate and pay taxes and other obligatory payments to the budget in accordance with the Special part of this Code.
      10. The provisions of this Article shall not be applied to the order and deadlines for submission of the tax reporting on taxes for property, vehicles and land, for payment for land use.
      Footnote. Article 74 as amended by the Laws of the Republic of Kazakhstan of 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); of 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

§ 2. Tax application

Article 75. Basic provisions

      1. Tax application - is a document of a taxpayer (a tax agent), presented to a tax service body to realize his/her rights and to perform obligations in the cases, established by this Code.
      2. The forms of tax applications shall be approved by the Government of the Republic of Kazakhstan.
      Footnote. Article 75 as amended by the Law of the Republic of Kazakhstan of 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012).

Article 76. The order of submission of a tax application

      1. A tax application shall be submitted by a taxpayer (a tax agent) to tax bodies in the order and within the periods, established by this Code.
      2. Taxpayers (tax agents) shall have the right to submit a tax application, unless otherwise established by this Code, to appropriate tax bodies optionally:
      1) in person - in a paper format;
      2) (by mail) by a registered letter with notification - in a paper format;
      3) in an electronic form, which allows the computer processing of information, - by the system of receiving and processing of tax reporting;
      3. In submission of a tax application on paper in person, the tax form shall be composed in a duplicate, one copy shall be returned to a taxpayer (a tax agent) with a mark of a tax body.
      4. The structure of electronic format of a tax application, software for composition and submission of a tax application in electronic form and update of this software shall be placed on the official website of an authorized body no later than January 1 of the current year.
      5. Making adjustments and (or) addition to a tax application shall be performed in the cases and the order, established by this Code.
      Footnote. Article 76 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

§ 3. Tax registers

Article 77. Tax registers

      1. A tax register - is a document of a taxpayer (a tax agent), which contains the information on taxation objects and (or) objects, related to taxation.
      Tax registers shall be designed for generalization and systematization of information for provision of the goals of the tax audit, mentioned in paragraph 3 of Article 56 of this Code.
      Formation of tax accounting shall be performed by reflection of the information, used for taxation purposes, in chronological order and ensuring the continuity of tax accounting data between tax periods (including those on operation, the results of which is taken into account in several tax periods, which makes an impact on the size of a taxation objects in forthcoming periods or transfers to a number of years).
      Tax registers shall be maintained in the special forms. The forms of tax registers and the order of reflection of tax accounting data in them shall be developed by a taxpayer (a tax agent) personally, except for the forms of tax registers, established by the Government of the Republic of Kazakhstan, and shall be approved in the tax accounting policy.
      The accuracy of reflection of business operations in tax registers shall be provided by the persons, who signed them.
      2. Tax registers shall include:
      1) tax registers, composed by a taxpayer (a tax agent) personally in the forms, established by the taxpayer (tax agent) in the tax accounting policy, taking into account the provisions of Article 56 of this Code;
      2) tax registers, composed by a taxpayer (a tax agent), the forms and regulations of which shall be established by the Government of the Republic of Kazakhstan.
      3. Tax registers shall contain the following obligatory requisites:
      1) the name of a register;
      2) the identity number of a taxpayer (a tax agent);
      3) the period for which the register is made;
      4) the last name, the first name and the middle name (if there is one) of a person who is responsible for a register.
      4. The government of the Republic of Kazakhstan shall have the right to establish the forms of registers for reflection of the information on:
      1) use of tax exemption, reduction of taxable income for the corporate income tax, investment tax preferences;
      2) determination of the cost balances of groups (subgroups) of the fixed assets and further expenses for the fixed assets;
      3) the derivative financial instruments;
      3-1) the amounts of the management and general administrative expenses of a nonresident legal entity which are attributed for deduction by its establishment in the Republic of Kazakhstan;
      3-2) the property, which is transferred to financial leasing;
      4) the invoices, which are written out and received by a payer of the value-added tax;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2012.
      5) the goods, purchased by taxpayers, who perform the realization of these goods in trade objects, including retail markets.
      Note of the RCLI!
      The paragraph shall be enforced from 01.01.2012.
      The provisions of sub-paragraph 5) shall be applied to the individual entrepreneurs only, who apply the special tax regime on the basis of the patent.
      5. In case of keeping tax registers on paper, correction of errors in these tax registers shall be justified and confirmed by the signature of the person, who made the correction, with specification of the date and justification of the corrections.
      6. Tax registers shall be presented to tax bodies’ officials during the documentary checks on paper and (or) in an electronic format - at the request of the tax bodies’ officials, performing the inspection.
      7. When making tax registers in electronic form, a taxpayer (a tax agent) shall be obliged, during the tax audit at the request of the tax bodies’ officials, to present tax registers in electronic formats and copies of these tax registers on paper, which are certified by the signatures of the head and the persons (person), who are (is) responsible for composition of these tax registers of a taxpayer (a tax agent), and by the stamp of a taxpayer (a tax agent), except for the cases when a taxpayer (a tax agent) does not have a stamp on the grounds, provided by the legislation of the Republic of Kazakhstan.
      Footnote. Article 77 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012); dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2); dated 09.06.2010 No. 288-IV (shall be enforced from 01.01.2011); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012).

Chapter 9. SPECIFICS OF THE TAX ACCOUNTING

Article 78. Financial leasing

      1. Transfer of property under a lease agreement, concluded in accordance with the legislation of the Republic of Kazakhstan, for the period longer than three years, shall be recognized as financial leasing, if it corresponds with one of the following conditions:
      1) transfer of the property to the ownership of a lessee and (or) provision of the right to a lessee to purchase property for the fixed price are specified by a lease agreement;
      2) a period of a financial leasing exceeds seventy five percent of useful life of the property, transferred to financial leasing;
      3) the current (discounted) cost of leasing payments for the whole period of financial leasing exceeds ninety percent of the cost of the property, transferred to financial leasing.
      Financial leasing is also a provision in the secondary leasing of the leased objects.
      For purposes of this Code, the secondary leasing is a provision to other lessee (lessees) of the leased objects, remained in the ownership of a lessor in case of termination of a lease agreement or its changes in connection with the change in number of the leased objects (for purposes of this Article, hereinafter - the primary lease agreement), with simultaneous observance of the following conditions:
      date of cancellation, termination or amendment of the contract of the primary lease and date of the contract(s) of the secondary leasing accounted for one tax period specified in Article 269 of this Code;
      a secondary lease agreement saves the conditions, which are provided by the primary lease agreement, except for the conditions for the number of the leased objects, leasing payments and a lease period;
      the objects, provided in the secondary leasing, shall be the objects in the number, which does not exceed their total number in the primary lease agreement;
      in case the primary lease agreement foresees the method of annuity payments - the total amount of lease payments under a secondary lease agreement (agreements) shall not exceed the total amount of lease payments in the primary lease agreements, reduced to the amount of lease payments, received from a lessee under the primary lease agreements.
      in case that the primary lease agreement foresees the method of payment in equal shares - the cost of a leased object, transferred to the secondary leasing, shall not exceed the unpaid cost of the leased object under the primary lease agreement, the amount of the remuneration rate under a second lease agreement (agreements) shall not exceed the amount of the remuneration rate under the primary lease agreement;
      the leased objects shall be provided in the secondary leasing for the period no less than three years.
      For purposes of this Code, the transfer of property to the financial leasing shall be considered as realization of the property by a lessor to a lessee. At that, the lessee shall be considered as the owner of the leased object, and lease payments - as payments on the loan granted to the lessee.
      For purposes of this Code:
      the method of annuity payments - is the method of settling of lease payments, in which the lease payments shall be set to equal amounts at equal time intervals;
      the method of payment in equal shares -is the method of settling of lease payments, in which the lease payments, except for lease remunerations, shall be set to equal amounts.
      2. If a lease agreement determines the right of a lessee to extend the period of financial leasing, the period of financial leasing shall be determined, taking into account the period of the actual extension.
      3. The cost of property, which is transferred (received) to the financial leasing (under financial leasing), shall be determined at the date of conclusion of the lease agreement.
      The property, which is transferred to the financial leasing, is the leased objects, subjected to receiving by a lessee as the primary means of real estate investments, biological assets.
      4. For purposes of taxation, the following cases shall not be recognized as the financial leasing:
      1) leasing transactions in the event of termination of their lease agreements (termination of the obligations under the lease agreement) before the expiry of three-year period from the date of conclusion of these agreements, except for the following cases:
      recognition of a lessee's bankruptcy in accordance with the legislation of the Republic of Kazakhstan and his/her removal from the State register of legal entities;
      recognition of an individual a lessee on the basis of the implemented court decision as missing or announcement of his death, incapable or partially capable, ascertainment of his/her disability of I, II group, and in case of death of an individual - a lessee;
      coming into force of regulations of an enforcement agent on return of an enforcement document to a lessor in connection with in the absence of the lessee’s property, including money, securities and income, which may be levied, and when an enforcement agent unsuccessfully takes the measures, provided by the legislation of the Republic of Kazakhstan on enforcement procedure and the status of enforcement agents, for identification of the property, including money, securities and income;
      shall be enforced of the court decision to refuse a lessor’s application for foreclosure of the property of a lessee, including money, securities or income;
      transfer of the leased objects to the secondary leasing;
      2) a leasing transaction, in which the amount of lease payments (under the agreement and (or) actual) for the first year of the lease agreement shall be more than 50 percent of the cost of a leased object;
      3) the leasing transactions, in which a lessee was replaced before the expiry of a three-year period from the date of conclusion of a lease agreement, except for the replacement in connection with the reorganization of a lessee;
      3-1) the leasing transactions, in which a lessee was replaced;
      4) the transactions of transfer of property to the subleasing.
      Footnote. Article 78 as amended by the Laws of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 09.06.2010 No. 288-IV (shall be enforced from 01.01.2011). 

Article 79. Long-term contracts

      1. For purposes of this Article, a long-term contract is a contract (an agreement) on production, installation, building, which is incomplete within a tax period for the corporate income tax, when the production, installation, building, provided by the contract, was started.
      2. Amount of actual expenses for a tax period under a long-term contract shall be attributed to deduction in accordance with Article 100 - 125 of this Code.
      3. Income under long-term contract shall be determined by the actual method or the method of completion according to the choice of a taxpayer.
      The chosen method of determination of income shall be reflected in the tax policy and cannot be changed during the term of the contract.
      4. In accordance with the actual method, the income under a long-term contract for the reporting tax period shall be the income, subjected to receiving (received) for the reporting tax period, but no less than amounts of the expenses for this period under the long-term contract.
      5. In accordance with the method of completion, the income under a long-term contract for the reporting tax period shall be determined as the product of the total amount of income under a long-term contract and the share of fulfillment of this contract for the reporting tax period.
      At that, the share of fulfillment of the contract shall be determined as the ratio of amount of the expenses for the reporting tax period and those, attributed to deduction in accordance with this Code, to the total amount of expenses under the long-term contract, which may be attributed to deduction in accordance with this Code, for the term of the contract.

Article 80. Implementation of the joint activity

      1. Unless otherwise provided by this Code, in case of an agreement on implementation of the joint activity or other agreement, which foresees two or more participants of an agreement on joint activity without forming a legal entity (hereinafter - the agreement on joint activity), taxation object and (or) objects, related to taxation shall be taken into account and subjected to taxation from each participant of the agreement on joint activity in the order, established by this Code.
      2. Each participant of an agreement on joint activity, regarding his/her share of participation, shall personally account assets, obligations, income, and expenses of joint activity for determination of taxation objects and (or) objects, related to taxation, unless otherwise provided by this Code.
      3. In case that an agreement on joint activity does not specify the order of distribution of assets, income, and expenses of the joint activity for determination of taxation objects and (or) objects, related to taxation, the participants of the agreement on joint activity shall develop and approve the tax accounting policy on joint activity before submission of the first tax reporting, reflecting this order and the tax obligation, appeared as the result of the joint activity.
      4. An agreement on joint activity may determine an authorized representative of the participants of the agreement on joint activity, who is responsible for keeping the tax accounting for this activity or its part, unless otherwise provided by this Code.
      5. For taxation purposes, assets, obligations, income, and expenses of the joint activity or its part shall be taken into account by an authorized representative of the participants of the agreement on joint activity separately from assets, obligations, income, and expenses of other activity of this authorized representative.
      6. Distribution of assets, obligations, income, and expenses of the joint activity for determination of taxation object and (or) objects, related to taxation between the participants of the agreement on joint activity, shall be performed by the participants of the agreement on joint activity and (or) their authorized representative for each tax period in the order, established in the agreement on joint activity.
      If the condition of an agreement on joint activity and (or) tax accounting policy on the joint activity does not establish the order of distributing the assets, obligations, income, and expenses for determination of taxation objects and (or) objects, related to taxation, the participants of the agreement on joint activity and (or) an authorized representative of these participants shall perform this distribution in proportion to the shares of participation in accordance with the agreement on joint activity.
      The results of distributions of assets, obligations, income, and expenses for determination of taxation objects and (or) objects, related to taxation between the participants of the agreement on joint activity, must be drawn ??in writing, signed by all participants of the agreement on joint activity and (or) their authorized representative (if there is one), sealed (if there are stamps in the cases, provided by the legislation of the Republic of Kazakhstan). The document on the results of distribution of assets, obligations, income, and expenses shall be submitted by each participant of the agreement on joint activity to tax service bodies during the implementation of the documentary check.
      An authorized representative of the participants of an agreement on joint activity shall be obliged to have copies of all the documents, on the basis of which the distribution of assets, obligation, income, and expenses was performed, unless otherwise provided by this Code.
      Footnote. Article 80 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2009). 

SECTION 4. THE CORPORATE INCOME TAX

Chapter 10. BASIC PROVISIONS

Article 81. The payers

      1. Payers of the corporate income tax are legal entities, who are residents of the Republic of Kazakhstan, except for the state institutions, and nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment or receive income from sources in the Republic of Kazakhstan.
      2. Legal entities, who apply the special tax regime on the basis of the simplified declaration, shall calculate and pay the corporate income tax for the income, which is taxable under this regime, in accordance with Chapter 61 of this Code.
      3. Payers of the tax on gambling industry and the fixed tax shall not be the payers of the corporate income tax for the income from the activity, specified in Articles 411, 420 of this Code.

Article 82. Taxation objects

      The objects of taxation of the corporate income tax are:
      1) the taxable income;
      2) the income, which is taxable at the source of payment;
      3) the net income of a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment. 

Chapter 11. TAXABLE INCOME

      Note of the RCLI!
      Operation of Article 83 for insurance, reinsurance companies in the part of their insurance operations, reinsurance operations is suspended until 01.01.2012 by the Law of the Republic of Kazakhstan dated 01.12.2008 No.100-IV and the taxation order operates during the suspension period...

Article 83. Taxable income

      Taxable income shall be determined as the disparity between the total annual income, taking into account the adjustments, provided by Article 99 of this Code, and the deductions, provided for by this Section.

§1. The total annual income

Article 84. The total annual income

      1. The total annual income of a resident legal entity shall consist of the income, which is subjected to receiving (received) by this legal entity in the Republic of Kazakhstan and outside the Republic during a tax period.
      The total annual income of a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, shall consist of the income, specified in Article 198 of this Code.
      The income from sources outside the Republic of Kazakhstan, which are received by a resident legal entity, shall be subjected to taxation in the order, established by this Section and Article 27 of this Code.
      2. For taxation purposes, the following shall not be considered as income:
      1) the cost of the property, received as a contribution to the authorized capital;
      2) the amount of money, received by an issuer for placement of the shares, issued by it.
      3) unless otherwise provided by this Code, for a taxpayer, transferring the property at no cost, - the cost of gratuitously transferred property. The cost of gratuitously executed works, provided services shall be determined in the amount of expenses for execution of the works, provision of the services;
      4) the amount of reduction of the size of the tax obligation in the cases, provided by this Code;
      5) unless otherwise provided by this Code, the income, which appears in connection with changes in value of assets and (or) obligations, recognized as income in accounting in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for that, subjected to receiving (received) from other person;
      6) increase in undistributed profit at the expense of reduction in reserves for revaluation of assets in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      7) the income, which appears in connection with recognition of the obligation in the accounting in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting in the form of positive disparity between the amount of the actual obligation and the cost of this obligation, recognized in the accounting;
      Note of the RCLI!
      Sub-paragraph 8) shall be enforced from 01.01.2012.
      8) for a managing company, which performs entrusted administration of the assets of a mutual fund on the basis of the license for investment portfolio management - the investment income, which is received by mutual funds in accordance with the legislation of the Republic of Kazakhstan on investment funds, and recognized by this custodian of the mutual fund, except for remuneration of this managing company.
      Footnote. Article 84 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 09.01.2012 No. 535-IV (the order of enforcement see Article 2).

Article 85. Income included in the total annual income

      1. The total annual income shall include all thes of a taxpayer’s income:
      1) the income from realization;
      2) the income from value increase;
      3) the income from derivative financial instruments;
      4) the income from the cancellation of obligations;
      5) the income for doubtful obligations;
      Note of the RCLI!
      Sub-paragraph 6) is in the wording of the Law of the Republic of Kazakhstan dated 26.11.2012 No. 57-V (shall be enforced from 01.01.2013)
      6) the income from reducing the size of created provisions (reserves) of banks and organizations, performing certains of banking operations on the basis of the license;
      Note of the RCLI!
      Operation of sub-paragraph 7) for insurance, reinsurance companies is suspended until 01.01.2012 by the Law of the Republic of Kazakhstan dated 01.12.2008 No. 100-IV and the taxation order operates during the suspension period
       7) the income from reduction of the insurance reserves, created by insurance, reinsurance companies under contracts of insurance, reinsurance;
      8) the income from cession of the right of claim;
      9) the income, which is received for the agreeing to limit or terminate an entrepreneurial activity;
      10) the income from retirement of fixed assets;
      11) the income from the adjustment of costs of geological studies and preparatory works for extraction of natural resources, and other expenses of subsoil users;
      12) the income from excess of the amount of transfers to the Fund of Liquidation of Mining Consequences over the amount of actual expenses for the liquidation of mining consequences;
      13) the income from joint activity;
      14) the penalties, fines and others of sanctions, conferred or recognized by a debtor, except for the refunded ones from the budget, unreasonably withheld penalties if these amounts had not been previously attributed to deduction;
      15) the received compensations for earlier performed deductions;
      16) the income in the form of gratuitously received property;
      17) the dividends;
      18) the remuneration for a deposit, security, bill, Islamic lease certificates;
      19) an excess of the amount of the positive exchange rate disparity over the amount of the negative exchange rate disparity. The amount of the exchange rate shall be determined in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      20) the winnings;
      21) the income, received in exploitation of the social objects;
      22) the income from selling of a company as the property complex;
      22-1) the income for investment deposit, placed in an Islamic bank;
      23) the net income from an entrusted administration of property, received (subjected to receiving) by a founder of the entrusted administration under a contract on entrusted administration or by a beneficiary in other cases of the entrusted administration;
      24) the other income which is not specified in sub-paragraphs 1) - 23) of this paragraph.
      2. In case the same income may be reflected in several Articles of income, this income shall be once included in the total annual income.
      In case that the date of recognition of income in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting is different from the date of recognition of income in accordance with this Code, the specified income shall be once taken into account for taxation purposes.
      At that, the date of recognition of income for taxation purposes shall be determined in accordance with the provision of this Code.
      3. For purposes of this Section, in case a taxpayer, who is an entrusted administrator, is entrusted with fulfillment of the tax obligation for a founder of the entrusted administration of property or a beneficiary by the act of foundation of entrusted administration of property, the total annual income of this taxpayer shall include the income of the founder of the entrusted administration under the contract on the entrusted administration of property or beneficiary in other cases of entrusted administration.
      4. A taxpayer shall have the right to make adjustments to income in accordance with Articles 131 and 132 of this Code.
      Footnote. Article 85 as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 86. The income from realization

      1. The income from realization is the cost of realized goods, works, and services, except for the income, included in the total annual income in accordance with Articles 87 - 98 of this Code, and the income, specified in paragraph 2 of Article 111 of this Code, in the part which does not exceed the amount of expenses, specified in paragraph 1 of Article 111 of this Code, unless otherwise provided by the legislation of the Republic of Kazakhstan on Transfer Pricing.
      The cost of the realized goods, works, and services shall not include the amount of the value-added tax and excise.
      2. For purposes of this Section, the income from service provision shall also include:
      1) the income in the form of remuneration for a credit (a loan, microcredit) on repo transactions;
      2) the income in the form of remuneration for transfer of property to the financial leasing;
      3) the royalties;
      4) the income from the leased property.
      Footnote. Article 86 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

Article 87. The income from the value increase

      1. The income from the value increase shall be formed of:
      1) realization of the assets, which are not subjected to depreciation, except for the assets, which are redeemed for the state needs in accordance with the legislative acts of the Republic of Kazakhstan;
      2) transfer of the assets, which are not subjected to depreciation, as a contribution to the authorized capital;
      3) retirement of the assets, which are not subjected to depreciation, as a result of reorganization by merger, accession, separation or segregation.
      2. For purposes of this Article, the assets, which are not subjected to depreciation, shall include:
      1) the parcels of land;
      2) the objects of incomplete building;
      3) the uninstalled equipment;
      4) the assets with the service life of more than one year, which are not used in the activity, aimed at receiving of income;
      5) the securities;
      6) the shares of participation;
      7) the fixed assets, the cost of which is fully attributed to deduction in accordance with the tax legislation of the Republic of Kazakhstan, operating until January 1, 2000.
      8) the assets, which are put into operation under an investment project under the contracts, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments, the cost of which is attributed to deduction;
      9) the property, attributed to the social objects in accordance with paragraph 2 of Article 97 of this Code.
      3. In the case, specified in sub-paragraph 1) of paragraph 1 of this Article (except for the cases, provided by paragraphs 5, 6, 11 of this Article), the increase shall be determined by each asset as the positive disparity between the cost of realization and the primary cost.
      In the case, specified in sub-paragraph 2) of paragraph 1 of this Article (except for the cases, provided by paragraphs 5, 6, 11 of this Article), the increase shall be determined by each asset as the positive disparity between the cost of asset, based on the cost of a contribution, specified in the founding documents of a legal entity, and the primary cost.
      In the case, specified in sub-paragraph 3) of paragraph 1 of this Article (except for the cases, provided by paragraphs 5, 6, 11 of this Article), the increase shall be determined by each asset as the positive disparity between the cost, reflected in the transfer act or separation balance, and the primary cost.
      4. For purposes of this Article, the primary cost of assets, which are not subjected to depreciation, except for securities and shares of participation, is the totality of costs of purchase, production, installation of assets, and other costs, increasing their value, including post-acquisition in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for:
      the costs (expenses), which are not attributable to deduction in accordance with this Code, except for the costs, specified in sub-paragraph 14) of Article 115 of this Code;
      the costs (expenses), which are attributed to deduction in accordance with the second part of paragraph 12 of Article 100 of this Code;
      the costs (expenses), on which a taxpayer shall have the right for deduction on the basis of paragraphs 6 and 13 of Article 100, and Articles 101 - 114 of this Code;
      the depreciation charges;
      the costs (expenses), which appear in the accounting and are not considered as expense for taxation purposes in accordance with paragraph 15 of Article 100 of this Code.
      5. For the securities, except for the debt securities, as well as for participation share, the increase of the value for each security, share shall be recognized:
      1) in realization - the positive disparity between the cost of realization and the primary cost (contribution);
      2) in transfer as a contribution to the authorized capital - the positive disparity between the cost of a security, participation share, which are determined on the basis of the cost of contribution, specified in the founding documents of a legal entity and the primary cost of securities, participation shares;
      3) in retirement as a result of the reorganization of a legal entity by merger, accession, separation, and segregation - the positive disparity between the cost, reflected in the transfer act or separation balance, and the primary cost (contribution).
      6. For the debt securities, the increase of the value for each security shall be recognized:
      1) in realization - the positive disparity, excluding coupon, between the cost of realization and the primary cost, including depreciation of discount and (or) bonus as of the date of the realization;
      2) in transfer as a contribution to the authorized capital - the positive disparity, excluding coupon, between the cost of a debt security, which is determined on the basis of the cost of the contribution, specified in the founding documents of a legal entity, and the primary cost, including depreciation of discount and (or) bonus as of the date of the transfer;
      3) in retirement as a result of the reorganization of a legal entity by merger, accession, separation, and segregation - the positive disparity, excluding coupon, between the cost, reflected in the transfer act or separate balance, and the primary cost, including depreciation of discount and (or) bonus as of the date of the retirement;
      7. For purposes of this Article, the primary cost of securities and a participant share is the totality of actual costs of their purchase, the costs, connected with purchase of securities, increasing their value and participation shares in the cases, provided by international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, and the cost of a contribution to the authorized capital.
      8. Unless otherwise provided by this Article, the cost of a contribution to the authorized capital is the cost which is specified in the founding documents of a legal entity.
      8-1) The income from increase of the value in realization of securities shall be included in the total annual income, taking into account the provisions of paragraphs 2, 3, 4, 4-1 and 4-2 of Article 137 of this Code.
      9. When a taxpayer, who shall not determine deductions of the fixed assets in accordance with this Code, includes in the authorized capital the living quarters, country cottages, garages, other personal objects which are under the ownership right of this taxpayer for one year or longer from the moment of the registration of the ownership right, the cost of a contribution to the authorized capital shall be the cost of the transferred property, determined in accordance with the civil legislation of the Republic of Kazakhstan.
      10. When a taxpayer, who shall not determine deductions of the fixed assets in accordance with this Code, includes in the authorized capital the property, which is not specified in paragraph 9 of this Article, the cost of a contribution to the authorized capital shall be the cost of purchase, production, building, mounting, and installation of the property, transferred to the authorized capital.
      When there is no cost of purchase, production, building, mounting, and installation of the property, transferred to the authorized capital, the cost of a contribution shall be the market value of the property as of the date of appearance of the ownership right for this property. For purposes of this paragraph, the market value is the cost, which is determined in the evaluation report, made under an agreement between an appraiser and a taxpayer in accordance with the legislation of the Republic of Kazakhstan on valuation.
      The market value of property must be determined by a taxpayer no later than the deadline, established for submission of the declaration for the corporate income tax.
      11. For the assets, specified in sub-paragraphs 7) and 8) of paragraph 2 of this Article, the increase of the value of each asset shall be determined:
      1) in case of realization - equal to the cost of realization;
      2) in case of transfer as a contribution to the authorized capital - equal to the cost of an asset, determined on the basis of the cost of the contribution, specified in the founding documents of a legal entity.
      3) in case of retirement as a result of reorganization of a legal entity by merger, accession, separation or segregation - equal to the cost, reflected in the transfer act or the separation balance.
      12. If the assets, which are not subjected to depreciation, were received gratuitously, for purposes of this Article, the primary cost shall be the cost of assets, included in the total annual income in the form of the cost of gratuitously received property in accordance with this Code.
      Footnote. Article 87 in the wording of the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 88. The income from cancellation of obligations

      1. The income from cancellation of obligations shall include:
      1) the cancellation of a taxpayer’s obligations by his/her creditor;
      2) the obligations, not demanded by a creditor at the time of approval of the liquidation balance in the liquidation of a taxpayer;
      3) the cancellation of obligations in connection with the expiry of the limitation period, specified by the legislative acts of the Republic of Kazakhstan;
      4) the cancellation of obligations under the implemented court decision.
      2. The amount of income from cancellation of obligations is equal to the amount of obligation (except for the amount of the value-added tax), which are payable in accordance with the primary documents of a taxpayer as of the date:
      of cancellation in the cases, specified in sub-paragraph 1), 3) and 4) of paragraph 1 of this Article;
      of approval of the liquidation balance in the case, specified in sub-paragraph 2) of paragraph 1 of this Article.
      3. The provision of paragraphs 1 and 2 of this Article shall not be applied to the obligations, recognized as doubtful in accordance with this Code.
      4. The income from cancellation of obligations shall not include the reduction of the size of obligations in connection with their transfer as the property complex under a sale contract.
      Footnote. Article 88 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 89. The income for doubtful obligations

      The obligations, which appear for the purchased goods (works, services), and for the calculated income and other payments to employees, determinable in accordance with paragraph 2 of Article 163 of this Code, and those, not satisfied within three years from the date of appearance of these obligations, shall be recognized as doubtful.
      The specified obligations shall be subjected to inclusion into the total annual income of a taxpayer within the amount of these obligations which is previously attributed to deduction, except for the value-added tax which shall be restored on mutual settlement with the budget on the rate, accepted on the date of appearance of the obligations, in proportion to the amount of the obligations, which are previously attributed to deduction.

Article 90. The income from reducing the size of the created provisions (reserves)

      Note of the RCLI!
      This wording of paragraph 1 shall operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (for the suspended version see an archived version No. 30 of the Tax Code of the Republic of Kazakhstan).
      Paragraph 1 is provided in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2013).
      Paragraph 1 is provided in the wording of the Law of the Republic of Kazakhstan dated 26.11.2012 No. 57-V (shall be enforced from 01.01.2014).
      1. The income from reducing the size of provisions (reserves), created by a taxpayer, who shall have the right to deduct the provision (reserves) in accordance with paragraphs 1 and 4 of Article 106 of this Code, unless otherwise provided by this Article, shall be recognized as:
      1) the amounts of provision (reserves), which are previously attributed to deduction, in the amount proportional to the amount of fulfillment, in case of fulfillment of the obligation by a debtor;
      2) the amounts of provision (reserves), which are previously attributed to deduction, when reducing the size of claims against a debtor under an agreement on break-up fee, novation agreement, transfer of the right of claim by conclusion of a cession agreement and (or) on the other grounds, provided by the legislation of the Republic of Kazakhstan, in the amount proportional to the amount of reducing the size of claims;
      3) the amounts of the provisions (reserves), previously attributed to deduction in the amount proportional to the amount of a reclassified requirement, in cases of the reclassification of claims.
      Note of the RCLI!
      Paragraph 1-1 shall be enforced from 01.01.2012 and operate until 01.01.2018 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV.
      1-1. The income from reducing the size of provisions (reserves), created by a taxpayer, who shall have the right to deduct the amounts of the costs of creation of the provisions (reserves) in accordance with paragraph 1-1 of Article 106 of this Code, unless otherwise provided by paragraph 2 of this Article, shall be recognized as:
      1) the amounts of provision (reserves), which are previously attributed to deductions, in the amount proportional to the amount of fulfillment, in case of fulfillment of the obligation by a debtor;
      2) the amounts of provision (reserves), which are previously attributed to deductions, when reducing the size of claims against a debtor under an agreement on break-up fee, novation agreement, transfer of the right of claim by conclusion of a cession agreement and (or) on the other grounds, provided by the legislation of the Republic of Kazakhstan, in the amount proportional to the amount of reducing of the size of claims;
      3) the amount of reducing provisions (reserves), previously attributed to deduction in the amount proportional to the amount of a reclassified claim, in case of the reclassification of claims.
      Note of the RCLI!
      The amendment in paragraph 2 shall be enforced from 01.01.2012 and operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV, in the wording of the Law of the Republic of Kazakhstan dated 26.11.2012 No. 57-V (shall be enforced from 01.01.2018).
      2. The following cases shall not be recognized as the income from reducing the size of provisions (reserves), created by a taxpayer, who shall have the right to deduct the amounts of the costs of creation of the provisions (reserves) in accordance with paragraph 1, 1-1 and 4 of Article 106 of this Code, unless otherwise provided by paragraph 2 of this Article,:
      1) removal from the State Register of legal entities in connection with the reorganization of a legal entity - a debtor under the court decision on the grounds, established by legislative acts of the Republic of Kazakhstan;
      2) recognition of an individual-a debtor on the basis of the implemented court decision as missing or declaration of his/her death, incapability or partial incapability, ascertainment of his/her disability of I, II group, and in case of death of an individual- a debtor;
      3) coming into force of regulations of an enforcement agent on return of an executive document to a taxpayer, who shall have the right to deduct the amount of the costs of creation of the provisions (reserves) in accordance with paragraphs 1 and 4 of Article 106 of this Code, in the case when a debtor and the third persons, who together with the debtor bear the joint and subsidiary responsibility before a taxpayer, who shall have the right to deduct the amount of the costs of creation of the provisions (reserves) in accordance with paragraphs 1 and 4 of Article 106 of this Code, do not have property, including money, securities or income which can be recovered, and when an enforcement agent unsuccessfully takes the measures, provided by the legislation of the Republic of Kazakhstan on execution procedure and the status of enforcement agents, for identification of the property, including money, securities and income;
      4) coming into force of the court decision on refusal to a taxpayer, who shall have the right to deduct the amount of the costs of creation of the provisions (reserves) in accordance with paragraphs 1 and 4 of Article 106 of this Code, to foreclose the property, including money, securities or income of a debtor;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2012 in accordance with the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV.
      5) removal from the register as an individual entrepreneur in connection with recognition of the individual entrepreneur’s - the debtor’s bankruptcy in accordance with the legislation of the Republic of Kazakhstan on bankruptcy;
      Note of the RCLI!
      Sub-paragraph 6) shall be enforced from 01.01.2012 and operate until 01.01.2018 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV.
      6) concession by a bank of the right of claim on a credit (a loan) to an organization, improving the quality of the credit portfolios of the second level banks, hundred percent of the voting shares of which belongs to the National Bank of the Republic of Kazakhstan, - in the part of the negative disparity between the cost of the right of claim on the credit (loan), on which the banks made the concession, and the cost of claim on the credit (loan), which is receivable by the bank from the debtor on the date of the concession of the right of claim on the credit (loan) in accordance with the primary documents of the bank.
      3. The income from reducing the size of insurance reserves, created by insurance, reinsurance company under the contracts of insurance and reinsurance, shall be the amount of reducing the size of the created insurance reserves, which are attributed to deduction in the size and the order, established by this Code.
      Footnote. Article 90 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012); dated 13.02.2009 No. 135-IV (the order of enforcement see Article 3); dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).

Article 91. The income from concession of the right of claim

      The income from concession of the right of claim:
      1) for a taxpayer, who purchases the right of claim, - is the positive disparity between the amount, receivable from a debtor at the request of the principal debt, including the amounts in excess of the principal debt on the date of the concession of the right of claim, and the cost of purchase of the right of claim;
      2) for a taxpayer, who conceded the right of claim, - is the positive disparity between the cost of the right of claim, for which the concession is made, and the cost of the claim, receivable from a debtor on the date of the concession of the right of claim in accordance with the primary documents of the taxpayer.

Article 92. The income from retirement of financial assets

      If the cost of retired fixed assets (on group I) or a group (on groups II, III and IV), determined in accordance with Article 119 of this Code, exceeds the balance of the subgroup (on group I) or groups (on groups II, III and IV) at the beginning of a tax period, taking into account the cost of the received fixed assets in the tax period, and further expenses, which are incurred in the tax period and taken into account in accordance with paragraph 3 of Article 122 of this Code, the size of the excess shall be included into the total annual income. The cost balance of this sub group (on group I) or a group (on groups II, III and IV) becomes equal to zero at the end of the tax period.
      Footnote. Article 92 as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2).

Article 93. The income from the cost adjustments to geological studies and preparatory works for mining and other expenses of subsoil users

      If the amount of income, which makes adjustments in accordance with Article 111 of this Code to the costs, which form a separate group, exceeds the amount of the last one at the beginning a tax period, taking into account the incurred expenses in the tax period, the amount of the excess shall be included into the total annual income. The size of this group becomes equal to zero at the end of the tax period.

Article 94. The income from exceeding the amount of contributions to the fund of liquidation of mining consequences over the amount of the actual costs for liquidation of mining consequences

      1. If the actual costs for liquidation of mining consequences are lower than the contributions, made to the specified fund, the disparity shall be included into the total annual income.
      2. In case that a subsoil user does not execute the works on liquidation of mining consequences within the period, established by the program for liquidation of mining, approved by an appropriate government body, the amounts of contributions to the Fund of Liquidation of Mining Consequences, attributed to deduction for the accounting period, shall be included into the total annual income of the tax period where they must be made.

Article 95. The received compensations on previously performed deductions

      1. The income, received in the form of compensations on previously performed deductions shall include:
      1) the amounts of claims, recognized as doubtful, previously attributed to deduction and refunded within further tax periods;
      2) the amounts, received from the state budget for covering the costs (expenses);
      3) the amount of compensation for damage, paid by an organization or a person, who inflicted the damage, except for the insurance payments, specified in Article 119 of this Code;
      4) other compensations, received for recovery of the costs which are previously attributed to deductions.
      The received compensation is the income of the tax period in which it was received.
      2. The amount of insurance premiums, which are refundable or refunded by an insurance company to a policy-holder at its expiry or in early termination of a contract of the unfunded insurance and previously attributed to deduction by the policy-holder, shall be included into the total annual income of the tax period where they were refundable and refunded to the policy-holder.

Article 96. Gratuitously received property

      Unless otherwise established by this Code, the cost of any property, including works and services, gratuitously received by a taxpayer shall be his/her income.
      The cost of gratuitously received property, including works and services, shall be determined by the date of accounting in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      The cost of property, including works and services, received in accordance with paragraph 11 of Article 100 of this Code shall not be recognized as gratuitously received property.
      Footnote. Article 96 as amended by the Law of the Republic of Kazakhstan 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 97. The income received in exploitation of the social objects

      1. The social objects shall include the property, which is owned by a taxpayer under the ownership right, used in performing thes of activities, provided by this Article.
      2. The total annual income of a taxpayer shall include the excess of receivable (received) income over the actual incurred costs in exploitation of the social objects, used in the followings of activities:
      1) a medical activity;
      2) an activity in the sphere of primary, basic secondary, general secondary, technical and professional, post-secondary, higher and postgraduate education; additional education;
      3) an activity in the sphere of science, physical culture and sports, culture, provision of services on preservation of historic and cultural heritage, archival values;
      4) a recreational activities for employees, members of their families, employees and families of the related parties, and exploitation of housing facilities.
      3. The income, received from exploitation of the social objects, used in public catering of employees of early childhood care and education, social protection and welfare of children, the elderly and the disabled persons, shall be included in the total annual income.
      Footnote. Article 97 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 98. The income (loss) from selling a company as a property complex

      1. The income from selling a company as a property complex shall be determined as the positive disparity between the cost of realization under a sale contract of a company as the property complex and the balance cost of transferred assets, reduced by the balance cost of the transferred obligations, according to the accounting data on the date of realization.
      2. The loss from selling a company as the property complex shall be determined as the negative disparity between the cost of realization under a sale contract of a company as the property complex and the balance cost of the transferred assets, reduced by the balance cost of the transferred obligations, according to the accounting data on the date of realization.
      Transfer of the loss from selling a company as the property complex shall be performed in the order, established by Article 137 of this Code.

Article 99. Adjustments to the total annual income

      1. The following shall be excluded from the total annual income:
      Note of the RCLI!
      Sub-paragraph 1) is amended by the Law of the Republic of Kazakhstan dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2013).
      1) dividends, except those, paid by private mutual funds of risk investment and stock funds of risk investment;
      2) the amount of obligatory calendar, additional and emergency contributions of banks, received by an organization, which performs obligatory assurance of the deposits of individuals;
      3) the amount of obligatory, additional and emergency contributions of insurance companies, received by the Fund of assurance of insurance payments;
      4) the amount of money, received by an organization, which performs obligatory assurance of the deposits of individuals, and by the Fund of assurance of insurance payments in the order of satisfaction of their requests on the refunded deposits and the performed assurance and compensation payments;
      5) investment income, received in accordance with the legislation of the Republic of Kazakhstan on pension provision and transferred to individual pension accounts;
      6) investment income, received in accordance with the legislation of the Republic of Kazakhstan on obligatory social insurance and aimed at increase of the assets of the State Social Insurance Fund;
      Note of the RCLI!
      Sub-paragraph 7) shall be enforced from 01.01.2012.
      7) investment income, received by joint-stock investment funds from investment activity in accordance with the legislation of the Republic of Kazakhstan on investment funds and taken into account by a custodian of a joint-stock investment fund;
      8) income from concession of the right of debt claim, received by the special financial company under a securitization transaction in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization;
      9) net income from an entrusted administration of property, received (receivable) by a founder of the entrusted administration under the agreement on the entrusted administration of property or beneficiary in other cases of the entrusted administration;
      10) the amount of annual obligatory contributions, received by the Fund of assurance of obligations' fulfillment of cotton receipts from cotton-processing organizations;
      11) the amount of annual obligatory contributions, received by the Fund of assurance of obligations’ fulfillment of grain receipts from grain-collecting stations;
      12) the amount of money, received by the Fund of assurance of obligation fulfillment of cotton (grain) receipts in the order of satisfaction of requests for the performed insurance payments;
      13) the income, received by an Islamic bank in the process of management of money, received in the form of investment deposits, transferred to the accounts of depositors of these investment deposits and remained on them;
      14) income from concession of the right of debt claim, received by the Islamic special financial company, created in accordance with the legislation of the Republic of Kazakhstan on securities market;
      Note of the RCLI!
      Sub-paragraph 15) shall be enforced from 01.01.2011 and operate until 01.01.2016 (see Article 2 of the Law of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV).
      15) income from realization, received (receivable) by a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, at the expense of a grant funds under an international agreement, a participant of which is the Republic of Kazakhstan, aimed at support (assistance) of the low-income citizens in the Republic of Kazakhstan;
      Note of the RCLI!
      The second, third and fourth part of paragraph 1 shall be enforced from 01.01.2012 and operate until 01.01.2018.
      The income from implementation of thes of activities, provided by the legislation of the Republic of Kazakhstan on banks and banking, included in the total annual income of the subsidiary of the bank, which purchases doubtful and bad assets of a parental bank, and transferred to the bank, which conceded the right of claim for doubtful and bad assets, shall be excluded from the total annual income of this subsidiary.
      At that, attribution of receivable income to the income from implementation of thes of activities, specified by the legislation of the Republic of Kazakhstan on banks and banking, shall be performed in the order, established by the National Banks of the Republic of Kazakhstan by agreement with an authorized body.
      The income from concession of the right of claim, received in connection with the buy-out from the organization, improving the quality of credit portfolios of the second-tier banks, and the hundred percent of the voting shares of which belong to the National Bank of the Republic of Kazakhstan, of the rights of claim for credits (loans) previously conceded to this organizations shall be excluded from the total annual income of a bank.
      2. In the transition to a different method of evaluation of inventories from that, which was used by a taxpayer in previous tax period, the total annual income of the taxpayer shall be increased on the amount of the positive disparity and reduced by the amount of the negative disparity, which are formed as a result of application of the new evaluation method.
      Transition to a different method of evaluation of inventories shall be performed by a taxpayer from the beginning of a tax period.
     Footnote. Article 99 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 19.03.2010 No. 258-IV (shall be enforced from 01.01.2011 and operate until 01.01.2016); dated 09.01.2012 No. 535-IV (the order of enforcement see Article 2); dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

§ 2. Deductions

Article 100. Deductions

      1. Expenses of a taxpayer in connection with implementation of the activity, aimed at receiving income, shall be deducted during the determination of taxable income, except for the expenses which are not subjected to deduction in accordance with this Code.
      2. In the cases, provided by this Code, the amount of expenses, subjected to deduction, shall not exceed the established standards.
      3. Deductions shall be performed by a taxpayer if he/she has the documents, confirming the expenses, connected with his-her activity, aimed at receiving income. These expenses shall be deducted in the tax period when they were actually incurred, except for the expenses of forthcoming periods, which are determined in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      Expenses of forthcoming periods shall be deducted in the tax period they belong to.
      4. Losses, suffered by the subjects of natural monopolies, shall be deducted within the standards, established by the legislation of the Republic of Kazakhstan.
      5. In case the sames of expenses are provided in several Articles of the costs, these expenses shall be deducted only once during the calculation of taxable income.
      6. Charged and recognized penalties, fines, forfeits shall be deducted, unless otherwise provided by Article 103, 115 of this Code.
      7. Remuneration for credits (loans) received for construction, assigned in the period of construction, shall be included into the cost of the construction object.
      8. Attribution to deduction of expenses for the joint activity or its part, in case of keeping the tax accounting by an authorized representative of the participant of an agreement on joint activity, shall be performed on the basis of the data, provided by this representative.
      9. A taxpayer’s costs for construction, purchase of fixed assets and other costs of capital nature shall be deducted in accordance with Article 116 - 125 of this Code.
      10. Expenses, incurred in exploitation of the social objects, specified in paragraph 3 of Article 97 of this Code, shall be deducted.
      11. If the conditions of a transaction foresee the provision by a taxpayer of quality assurance of the realized goods, executed works, provided services, the amount of actual expenses of the taxpayer for liquidation of shortcomings of the realized goods, executed works, provided services, which are incurred within the period provided for by a transaction of the warranty period, shall be deducted in accordance with this Code.
      12. Unless otherwise provided by this Code, the value-added tax, which is not attributable to deduction by the data on the value-added tax declaration, shall be accounted for in the cost of the purchased goods, works and services.
      A payer of the value-added tax shall have the right to attribute to deduction of the value-added tax:
      1) which is not attributable to set-off in the application of proportional method of the set-off in accordance with Article 261 and 262 of this Code;
      2) which is excludable from the set-off, in the case, specified in sub-paragraph 1) of paragraph 1 of Article 258 of this Code, on fixed assets, inventories, works, services, used for receiving income;
      3) which is excludable from the set-off, in the case, specified in sub-paragraph 7) of paragraph 1 of Article 258 of this Code, except for the transfer of the assets to the authorized capital, which are not subjected to depreciation.
      The deduction, provided by sub-paragraph 1) of the second part of this paragraph, shall be performed within the tax period where the value-added tax appears, which is not attributable to set-off in application of the proportional method of the set-off in accordance with Article 261 and 262 of this Code.
      The deductions, provided by sub-paragraphs 2) and 3) of the second part of this paragraph, shall be performed within the tax period, when the value-added tax shall be excludable from the set-off.
      The value-added tax, which is excludable from the set-off, in the cases, specified in sub-paragraphs 1) and 7) of paragraph 1 of Article 258 of this Code, for the assets, which are not attributable to depreciation, shall be accounted for in accordance with paragraph 4 of Article 87 of this Code.
      If a payer of the corporate income tax is a subsurface user, working under a production sharing agreement (a contract) as a part of a general partnership (consortium) and fulfillment of the tax obligations for the value-added tax is entrusted to an operator in accordance with paragraph 3 of Article 271-1 of this Code, the value-added tax, specified by the second part of this paragraph, in the amount, attributed to the share of this subsurface user by the data of the operator’s declaration for the value-added tax, shall be attributed to deduction.
      13. In removal of a taxpayer from the register for the value-added tax, an excess of the amount of the value-added tax, attributable to set-off, over the amount of the charged value-added tax on January 1, 2009, which is not set off against the future payments of the value-added tax, not presented to refund for the turnovers, taxable at the zero rate, after fulfillment of the requirements, specified in paragraph 2 of Article 230 of this Code, shall be attributed to deductions.
      14. The membership fees of the subjects of private entrepreneurship, paid by a taxpayer to the unions of private entrepreneurship in accordance with the Law of the Republic of Kazakhstan "On Private Entrepreneurship", within the monthly calculation index, established by the Law on the Republican Budget and which operates on January 1 of an appropriate financial year, for one employee, taking into account the average number of employees during the year, shall be deducted.
      14-1. The expenses of a taxpayer for the charged social contributions to the State Social Insurance Fund in the amount, which is determinable by the legislation of the Republic of Kazakhstan, shall be deducted.
      15. Unless otherwise provided by this Code, the expense, which appears in the accounting in connection with change in value of assets and (or) obligations during the application of international standards of financial reporting and requirement so the legislation of the Republic of Kazakhstan on accounting and financial reporting, shall not be considered as the expense for taxation purposes, except for that subjected to payment (paid).
      16. The expenses for derivative financial instruments shall be taken into account in accordance with the provisions of this Code.
      16-1. The cost of gratuitously transferred for advertising goods, which does not exceed 2-fold amount of the monthly calculation index, established for an appropriate financial year by the Law of the Republic of Kazakhstan on the Republican Budget and which operates on the date of the transfer or gift of goods, shall be attributed to deduction within the tax period when the gratuitously transfer of the goods was made.
      17. For the purposes of this part, in case if an entrusted administrator is entrusted by the act of foundation of entrusted administration of property with fulfillment of the tax obligation for a founder of the entrusted administration of property or beneficiary, expenses of the founder of the entrusted administration under the agreement of the entrusted administration of property of beneficiary in other cases of entrusted administration shall be included into the expenses of this entrusted administrator.
      18. A taxpayer shall have the right to make adjustments to the deductions in accordance with Article 131 and 132 of this Code.
      Footnote. Article 100 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2011).

Article 101. Deduction of the amounts of compensations for business trips

      The compensations for business trips, which are attributable to deduction, shall include:
      1) the actually incurred costs of a journey to the destination of a business trip and back, including covering the costs for reservation, on the basis of the documents, which confirm the costs for journey and reservation (including an electronic ticket when there is the document, confirming the fact of its payment);
      2) the actually incurred costs of rent of accommodation, including covering the costs for reservation, on the basis of the documents, confirming the expenses for rent of the accommodation and reservation;
      3) daily allowances, paid to an employee for the period of the business trip, in the amount, established by the decision of a taxpayer.
      The period of a business trip shall be determined on the basis of:
      an order or written directions of an employer on sending of an employee to a business trip;
      the number of days of business trip, based on the dates of departure to the place of business trip and return, specified in the documents, confirming the journey. If there is no such documents, the number of days of business trip shall be determined on the basis of other documents, confirming the date of departure to the place of business trip and (or) the date of return, which are provided for by the tax accounting policy of a taxpayer.
      4) for obtaining an entrance visa (the cost of the visa, consular services, obligatory health insurance), on the basis of the documents, confirming the expenses incurred with respect to obtaining an entrance visa (the cost of the visa, consular services, obligatory health insurance).
      Footnote. Article 101 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009).

Article 102. Deduction of the amounts of representation expenses

      1. The representation expenses shall include the expenses for reception and service of persons, including individuals who are not in the staff of a taxpayer, incurred:
      1) for purposes of establishment and maintenance of cooperation;
      2) for purposes of organizing and holding meetings of a board of directors, other management body of the taxpayer, except for executive bodies, regardless the place of holding of these meetings.
      The representation expenses shall also include the costs for transportation services of the special persons, meals during the negotiations, payment for services of interpreters who are not in the staff of the organization.
      The cost for leisure activities, entertainment and recreation shall not be included into the representation expenses.
      2. The representation expenses shall be attributed to deductions in the amount, which does not exceed 1 percent of the amount of expenses of an employer for the income of an employee, which is taxable, specified in paragraph 2 of Article 163 of this Code.
      Footnote. Article 102 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 103. Deduction for remuneration

      1. The deduction of remuneration shall be performed in accordance with the provisions of this Article.
      For purposes of this Article, remunerations are:
      1) the remunerations, specified by Article 12 of this Code;
      2) a forfeit (a fine, penalty) under a credit (loan) agreement between the interrelated parties;
      3) a payment for a guarantee to an interrelated party.
      2. The deduction of remuneration shall be performed within the amount, calculated using the following formula:
      (A + E) + (AC/AO) * (MC) * (B + C + D),
      A - the amount of remuneration, specified by paragraph 1 of this Article, except for the amounts, included in indicators B, C, D, E;
      B - the amount of remuneration, paid to an interconnected party, except for the amounts, included in indicator E;
      C - the amount of remuneration, paid to the persons, registered in a state with preferential taxation, determined in accordance with Article 224 of this Code, except for the amounts, included in indicator B;
      D - the amount of remuneration, paid to an independent party for loans, which are provided under a deposit or guarantee, surety or other form of security of interconnected parties, in case of fulfillment of the guarantee, surety or other form of security, except for the amount, included in indicator B;
      E - the amount of remuneration for credits (loans), given by a credit partnership, established in the republic of Kazakhstan;
      MC - marginal coefficient;
      AC - average annual amount of equity capital;
      AO - average annual amount of obligations;
      In calculation of the amounts A, B, C, D, E the remunerations for credits (loans), received for construction and assigned within the period of construction shall be excluded.
      For purposes of this Article, an independent party is a party which is the interrelated one.
      3. For purposes of paragraph 2 of this Article:
      1) an average annual amount of equity capital shall equal the arithmetical average of the amounts of equity capital at the end of each month of the reporting tax period. For the purposes of this Article, the negative value of average annual amount of equity capital shall be recognized as equal to zero;
      2) an average annual amount of obligations shall equal the arithmetical average of maximum amounts of obligations in each month of the reporting tax period. In calculation of average of annual obligations, the following charged obligations shall not be taken into account:
      the taxes, contributions and other obligatory payments to the budget;
      the salary and other income of employees;
      the income of forthcoming periods, except for the income from an interconnected party;
      the remunerations and compensations;
      the dividends;
      3) the marginal coefficient for financial organizations shall equal 7, for other legal entities - 4.
      4. For purposes of paragraph 2 of this Article, the amount of equity capital of a permanent establishment of a nonresident legal entity in the Republic of Kazakhstan shall be considered as if this permanent establishment is a distinct and separate legal entity and which operates independently from the nonresident legal entity, a permanent establishment of which it is.
      Footnote. Article 103 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009).

Article 104. Deduction of the paid doubtful obligations

      In case of the doubtful obligations, previously recognized as the income, were paid by a taxpayer to a creditor, the deduction of the amount of payment shall be allowed. This deduction shall be performed within the amount, previously attributed to income in the tax period when this payment was made.
      The order of attribution to deduction, provided by this Article shall also be applied to the cases of payment of the obligations, which were previously recognized as income in accordance with Article 88 of this Code. 

Article 105. Deduction of doubtful claims

      1. The doubtful claims are the claims, which appeared as a result of realization of goods, execution of works, provision of services to legal entities and individual entrepreneurs, and to nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment, affiliate, representation office, and not satisfied during three years from the date of appearance of the claims. The claims, which appeared for the realized goods, executed works, provided services and not satisfied due to the bankruptcy of a taxpayer - debtor in accordance with the legislation of the republic of Kazakhstan, shall also be recognized as the doubtful claims.
      2. The claims, recognized as doubtful in accordance with this Code, shall be subjected to deduction.
      Attribution by a taxpayer of doubtful claims to deduction shall be performed in simultaneous observance of the following conditions:
      1) presence of the documents, confirming the appearance of obligations;
      2) reflection of claims in the accounting on the date of attribution to deductions or attribution of these claims to expenses (write-off) in the accounting of previous periods.
      3. In case of recognition of a debtor’s bankruptcy, in addition to the specified in paragraph 2 of this article documents, it is necessary to have a copy of a court decision on termination of bankruptcy proceeding. In observance of the above-mentioned conditions, a taxpayer shall have the right to attribute to deductions the amount of doubtful claim in the tax period in which the court decision on termination of bankruptcy proceeding entered into force.
      4. The doubtful claim shall be attributed to deduction within the amount of the previously recognized income from realization of goods, execution of works, and provision of services. 

Article 106. Deduction of contributions to the reserve funds

      Note of the RCLI!
      This wording of paragraph 1 shall operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (for the suspended version see an archived version No. 30 of the Tax Code of the Republic of Kazakhstan).
      1. Banks and organizations, performing the certains of banking operations on the basis of the license for conduction of banking loan operations shall have the right to deduct provisions (reserves) against the following doubtful obligations and bad assets, contingent obligations, except for the assets and contingent obligations, provided in favor of interrelated parties or third persons on the obligations of the interconnected parties (except for the assets and contingent obligations of credit partnerships):
      1) deposits, including the balance on correspondent accounts, placed in other banks;
      2) credits (except for the financial leasing), provided to other banks and clients;
      3) debtor’s arrears of documentary settlements and guarantees;
      4) contingent obligations for uncovered letters of credit, issued or confirmed guarantees.
      The order of attribution of assets and contingent obligations to the category of doubtful and bad ones, shall be determined by the National Bank of the Republic of Kazakhstan by the agreement with an authorized body.
      Note of the RCLI!
      Paragraph 1-1 shall be enforced from 01.01.2012 and operate until 01.01.2018.
      1-1. Banks shall have the right to deduct the amount of costs of creation of provisions (reserves) against doubtful and bad assets, provided to a subsidiary of the bank for purchase of the rights of claim for credits (loans), which are recognized as doubtful and bad assets.
      The list of the granted permissions for creation or purchase of a subsidiary, purchasing doubtful and bad assets of a parental bank, shall be determined by the normative legal act of the National Bank of the Republic of Kazakhstan.
      At that, the amount of costs for creation of provisions (reserves) against doubtful and bad assets, provided by the parental bank to a subsidiary for purchase from the parental bank the rights of claim for credits (loans), which are created in the order, established by the National Banks of the Republic of Kazakhstan by the agreement with an authorized body, shall be subjected to deduction. The amount of costs for creation of provisions (reserves) against doubtful and bad assets, provided to the subsidiary for purchase of the right of claim for credits (loans), which are recognized as doubtful and bad assets, shall not exceed the ratio of the amount of the transferred by banks to the subsidiaries rights of claim for credits (loans), which are recognized as doubtful assets, to the date of the activity of the subsidiary.
      The order of attribution to deduction of the assets, allocated by banks to subsidiaries for purchase of the rights of claim for credits (loans), recognized as doubtful and bad assets, to the category of doubtful and bad assets, and the order of forming provisions (reserves) against the assets, which are provided by parental banks to subsidiaries, shall be established by the National Bank of the Republic of Kazakhstan by the agreement with an authorized body.
      Banks shall not have the right to deduct the amount of costs for creation of provisions (reserves) against doubtful and bad assets bought out from the organization, improving the quality of credit portfolios of the second-tier banks and hundred percent of voting shares of which belong to the National Bank of the Republic of Kazakhstan.
      Note of the RCLI!
      Operation of paragraph 2 for insurance, reinsurance companies shall be suspended until 01.01.2012 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV and the taxation order operates during the suspension period....
      2. Insurance, reinsurance companies shall have the right to deduct the costs of creation of insurance reserves under insurance and reinsurance contracts. The order of creation of insurance reserves shall be determined by the National Bank of the Republic of Kazakhstan by the agreement with an authorized body.
      Note of the RCLI!
      Paragraph 3 is provided in the wording of the Law of the Republic of Kazakhstan dated 26.11.2012 No. 57-V (shall be enforced from on 01.01.2013).
      3. Microcredit organizations shall have the right to deduct the costs of creation of reserves against doubtful and bad micro-credits, contingent obligations for provided micro-credits, except for the micro-credits and contingent obligations for micro-credits provided in favor of interrelated parties or third persons on obligations of interconnected parties, in the amount which does not exceed 15 percent of the amount of micro-credits, given within a tax period.
      The order of attribution of micro-credits and contingent obligations for the provided micro-credits to the category of doubtful and bad ones, and the order of creation of reserves shall be determined by the accounting policy of a microcredit organization, developed in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      Note of the RCLI!
      This wording of paragraph 4 shall operate until 01.01.2013 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (for the suspended version see an archived version No. 30 of the Tax Code of the Republic of Kazakhstan); provided by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2013).
      4. National Managing Holding and the legal entities, the main activity of which is implementation of loan operations or buyout of the rights of claim and hundred percent of voting shares (participation shares) of which belong to the National Managing Holding, shall have the right to deduct provisions (reserves) against the following doubtful and bad assets, contingent obligations, except for the assets and contingent obligations, provided for the interrelated parties or third persons on obligations of the interrelated parties (except for the assets and contingent obligations of credit partnerships):
      the deposits, including the balance on correspondent accounts, placed in other banks;
      the credits (except for the financial leasing), provided to banks and clients;
      the debtor’s arrears of documentary calculations and guarantees;
      The contingent obligations for uncovered letters of credit, issued or confirmed guarantees.
      The order of creation of provisions (reserves), attributed to deductions in accordance with this paragraph, the order of attribution of assets and contingent obligations to the category of doubtful and bad ones, and the list of the legal entities, specified in this paragraph and the order of formation of this list shall be approved by the Government of the Republic of Kazakhstan.
      Footnote. Article 106 as amended by the Law of the Republic of Kazakhstan dated 13.02.2009 No. 135-IV (the order of enforcement see Article 3); as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 107. Deductions of the costs for liquidation of mining consequences and the amounts of contribution to the liquidation funds

      1. A subsoil user, working on the basis of the contract on subsurface use, concluded in the order, established by the legislation of the Republic of Kazakhstan, shall have the right to deduct contributions to the liquidation fund from the total annual income. The specified deduction shall be allowed in the amount of contributions to a special deposit account in any bank in the territory of the Republic of Kazakhstan, made by the subsoil user within a tax period.
      The amount and the order of contributions to the liquidation fund shall be established by a contract on subsurface use.
      In case if an authorized state body on subsurface use reveals the fact of misuse of the assets of the liquidation fund by a subsurface user, the amount of the misused assets shall be included in the total annual income of the subsoil user of the tax period when it occurred or revealed and not eliminated, and in expiry of the limitation period, established by Article 46 of this Code.
      2. The expenses of a subsoil user, which are actually incurred during a tax period for liquidation of mining consequences, shall be attributed to deductions in the tax period when they were incurred, except for the expenses, incurred at the expense of the assets of the liquidation fund, placed on the special deposit account.
      3. A taxpayer shall have the right to deduct from the total annual income the amounts of contributions to the liquidation fund of polygons of waste disposal, which are transferred to the special deposit account in any second tier bank in the Republic of Kazakhstan.
      The amount and the order of contribution to the liquidation fund of polygons of waste disposal, and the order of use of the fund’s assets shall be established in accordance with the legislation of the Republic of Kazakhstan.
      In case a body, authorized for these purposes, reveals the fact of misuse of assets of the liquidation fund of polygons of waste disposal by taxpayer, the amount of the misused assets shall be included into the total annual income of the taxpayer of the tax period when it occurred.
      Footnote. Article 107 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009). 

Article 108. Deduction of the costs for research, scientific and technical works

      The costs for research and scientific and technical works, except the costs for purchase of fixed assets, their installation and other costs of capital nature, shall be attributed to deductions. The basis of deductions on these costs shall be technical task for research, scientific and technical works and the acceptance certificate of the completed phases of works.

Article 109. Deduction of insurance bonuses and contributions of participants of insurance systems

      1. Insurance bonuses, payable or paid by a policy holder under the insurance contracts, except for the insurance bonuses under the accumulative insurance contracts, shall be attributed to deduction.
      2. Banks - participants of the system of obligatory assurance of the deposits of individuals shall have the right to deduct the amounts of obligatory calendar, additional and emergency contributions, transferred in connection with assurance of the individuals’ deposits.
      Note of the RCLI!
      Operation of paragraph 3 for insurance, reinsurance companies is suspended until 01.01.2012 by the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV.
      3. Insurance, reinsurance companies, which are participants of the assurance system of insurance payments, shall have the right to deduct the amounts of obligatory, emergency and additional contributions, transferred in connection with assurance of insurance payments.
      4. Cotton-processing organizations - participants of the system of assurance of obligation fulfillment for cotton receipts shall have the right to deduct the amount of annual obligatory contributions, transferred in connection with assurance of obligations fulfillment for cotton receipts.
      5. Grain-receiving stations - participants of the assurance system of obligation fulfillment for grain receipts shall have the right to deduct the amounts of annual obligatory contributions, transferred in connection with assurance of obligation fulfillment for grain receipts.

Article 110. Deduction of the expenses for assigned income of employees and other payments to individuals

      1. Expenses of an employer for the taxable income of an employee, specified in paragraph 2 of Article 163 of this Code, shall be subjected to deduction, except for:
      those, included in the primary cost of fixed assets, objects of preference;
      those, recognized as further expenses in accordance with paragraph 3 of Article 122 of this Code;
      those, included in the primary cost of the assets, which are not subjected to depreciation, in accordance with Article 87 of this Code.
      Income of an employee in the form of expenses of an employer, which are aimed in accordance with the legislation of the Republic of Kazakhstan at education, advanced training or retraining of the employee on the specialty, connected with productive activity of the employer, shall also be attributed to deductions.
      2. Expenses of a taxpayer in the form of payment to the individuals, specified in sub-paragraphs 2), 3), 7), 9 - 12), 14), 17) of paragraph 3 of Article 155 of this Code, shall be attributed to deduction.
      3. Voluntary professional pension contributions, paid by a taxpayer under the agreements on pension provision at the expense of voluntary professional pension contributions, shall be deducted within the amount, established by the legislation of the Republic of Kazakhstan on pension provision.
      Footnote. Article 110 as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2).

Article 111. Deductions of the costs for geologic studies and preparatory works for the extraction of natural resources and other deductions of a subsurface user

      1. The costs, which are actually incurred by a subsoil user until the date of beginning of the extraction after commercial discovery, geological studies, exploration, preparatory works for extraction of mineral resources, including the costs of evaluation, arrangement, general administrative expenses, the amounts of paid signing bonus and commercial discovery bonus, the costs of purchase of fixed assets and intangible assets and other costs which shall be attributed to deduction in accordance with this Code, shall form a separate group of depreciable assets. The specified costs shall be deducted from the total annual income in the form of depreciable contributions from the date of beginning of the extraction after commercial discovery of mineral resources. The amount of depreciable contributions shall be calculated by application of the depreciation rate, which is determined by the discretion of a subsurface user, but no more than 25 percent to the amount of accumulated costs on the group of depreciable assets, which is provided by this paragraph, at the end of a tax period.
      The specified order shall also be applied in case if a subsurface user works under an extraction contract, concluded on the basis of discovery and evaluation of a deposit under an exploration contract. The amount of accumulated costs on the group of depreciable assets, appeared at the end of the last tax period under the exploration contract shall be deducted from the total annual income in the form of depreciation charges under the extraction contract.
      In case of termination of the mining activity under a separate extraction contract or joint exploration and extraction, provided that a subsoil user terminated the mining activity after the beginning of the extraction after commercial discovery, established by this Article, the cost balance of the group of depreciable assets, appeared at the end of the last tax period, shall be attributed to deduction.
      For purposes of this Article, the extraction after commercial discovery shall mean:
      1) under contracts on exploration, and joint exploration and extraction with unapproved reserves of mineral resources - the beginning of the extraction of mineral resources after approval of the reserves by an authorized for these purposes state body of the Republic of Kazakhstan;
      2) under contracts on joint exploration and extraction, under which the reserves of mineral resources are on the state balance and approved by an expert conclusion of the state body, authorized for these purposes, including the reserves, which require additional geological study, geological and economic re-evaluation, - the beginning of the extraction of mineral resources from the date of conclusion of these contracts, if these works are provided for by the work program of a contract and coordinated with an authorized state body on study and use of mineral resources.
      2. The costs, specified in paragraph 1 of this Article, shall be reduced by the amount of the following income of a subsoil user for the activity, performed under the contract on subsoil use:
      1) received in the period of geological studies and preparatory works for the extraction, except for the income, subjected to exclusion from the total annual income in accordance with Article 99 of this Code;
      2) received from realization of mineral resources, extracted before the date of beginning of the extraction after commercial discovery;
      3) received from realization of a part of the right for subsoil use.
      3. The order, established by paragraph 1 of this Article, shall also be applied to the costs of purchase of intangible assets, which are incurred by a taxpayer in connection with purchase of the right for subsoil use.
      Footnote. Article 111 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

Article 112. Deduction of expenses of a subsurface user for training of Kazakh personnel and development of the social sphere of regions

      1. The expenses, which are actually incurred by a subsurface user for education of Kazakh personnel and development of the social sphere of regions, shall be attributed to deduction within the amounts, established by a contract on subsurface use.
      2. The expenses, specified in paragraph 1 of this Article, which are actually incurred by a subsurface user before the beginning of the extraction after commercial discovery, shall be attributed to deductions in the order, established by Article 111 of this Code within the amounts, established by a contract on subsoil use.
      3. For purposes of this Article, the expenses, which are actually incurred by a subsurface user:
      1) for education of Kazakh personnel shall be recognized the amount, aimed at education, advanced training and re-training of the citizens of the Republic of Kazakhstan, and the funds transferred for these purposes to the state budget;
      2) for development of the social sphere of a region shall be recognized the costs of development and maintenance of the objects of social infrastructure of the region, and the funds, transferred for these purposes to the state budget.

Article 113. Deduction of the excess of the amount of negative disparity in exchange rate over the amount of positive disparity in exchange rate

      If the amount of negative disparity in exchange rate exceeds the amount of positive disparity in exchange rate, the amount of excess shall be attributed to deduction.
      The amount of disparity in exchange rate shall be determined in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.

Article 114. Deduction of taxes and other obligatory payments to the budget

      1. Unless otherwise provided by this Article, in a reporting tax period, the taxes and other obligatory payments to the budget, paid to the budget of the Republic of Kazakhstan or other state are entitled to deduction:
      1) in the reporting tax period, within the amounts, charged and (or) calculated for the reporting tax period and (or) the tax periods preceding the reporting tax period;
      2) in the tax periods preceding the reporting tax period, within the amounts, charged and (or) calculated for the reporting tax period.
      At that, the paid amounts of taxes and other obligatory payments to the budget shall be determined taking into account carrying out the set-offs in the order, established by Article 599 and 601 of this Code.
      Calculation and charge of taxes and other obligatory payments to the budget shall be performed in accordance with the tax legislation of the Republic of Kazakhstan or other state (for taxes and other obligatory payments to the budget, which are paid to the budget of other state).
      2. The following shall not be attributed to deduction:
      1) the taxes which are excluded before the determination of the total annual income;
      2) the corporate income tax and the taxes on income of legal entities, paid in the Republic of Kazakhstan and in other states;
      3) the taxes which are paid in states with preferential taxation;
      4) the excess-profit tax.
      Footnote. Article 114 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 115. Non-deductible expenses

      Non-deductible expenses are:
      1) the expenses, which are not connected with the activity aimed at receiving income;
      2) the expenses for transactions with the taxpayer, who is recognized as a false enterprise on the basis of the implemented sentence or a court decision, incurred from the date of the beginning of the criminal activity, established by the court, except for the costs of transaction, recognized by the court as valid;
      3) the expenses for transaction with the taxpayer, who is recognized as inactive in the order, specified by Article 579 of this Code, from the date of publication of the data on the official web site of an authorized body;
      4) the expenses for the transaction (transactions), recognized by a court as the performed by a subject of private entrepreneurship without the intention to carry out business activities;
      5) the forfeits (penalties, fines), transferrable (transferred) to the budget, except for the forfeits (penalties, fines), transferrable (transferred) to the budget under contracts on state purchases;
      6) the amount of excess of the expenses, for which there are standards of deduction, provided by this Code, over the maximum amount of deduction, calculated using these standards;
      7) the amount of taxes and other obligatory payments to the budget, calculated (charged) and paid in excess of the amount, established by the legislation of the Republic of Kazakhstan or other state (for the taxes and other obligatory payments, which are paid to the budget of other state);
      8) the expenses for purchase, production, building, mounting, installation and other expenses, included into the cost of the social objects, provided by paragraph 2 of Article 97 of this Code, and the expenses for their exploitation;
      9) the cost of the property, gratuitously transferred by a taxpayer, unless otherwise provided by this Code. The amount of gratuitously executed works, provided services shall be determined in the amount of the expenses, incurred in connection with execution of these works, provision of these services;
      10) the excess of the amount of the value-added tax, which is attributed to the set-off, over the amount of the charged value-added tax for a tax emerged from the taxpayer, applying Article 267 of this Code;
      11) the contributions to the reserve funds, except for the deductions, provided by Articles 106, 107 of this Code;
      12) the cost of the inventories, transferred under a contract of purchase (of sale) of a company as the property complex;
      13) the amount of the paid additional payment of a subsoil user, who works under a production sharing contract;
      14) the expenses of a taxpayer, included in accordance with Article 87 of this Code into the primary cost of the assets, which are not subjected to depreciation.
      Note of the RCLI!
      Paragraph shall be enforced from 01.01.2012 and operate until 01.01.2018.
      The subsidiary of a bank, purchasing doubtful and bad assets of the parental bank shall not have the right to deduct the following expenses:
      in the form of the money, received by this subsidiary in accordance with the legislation of the Republic of Kazakhstan on banks and banking operations and transferred to the bank, which conceded the rights of claim for doubtful and bad assets to this subsidiary;
      which are not related to thes of activities, provided by the legislation of the Republic of Kazakhstan on banks and banking operations.
      Footnote. Article 115 as amended by the Laws of the Republic of Kazakhstan dated10.12.2008 No. 100-IV (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

§ 3. Deductions of fixed assets

Article 116. Fixed assets

      1. Unless otherwise provided by this Article, the fixed assets are:
      1) basic assets, investments in real estate, intangible and biological assets, which are taken into account in the accounting of a taxpayer in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting and which are intended for use in the activity aimed at receiving income;
      2) assets for a period of more than one year, produced and (or) obtained by the concessionaire (successor or entity specifically created exclusively by the concessionaire for the implementation of the concession agreement) under the concession agreement;
      3) assets with lifetime of more than one year which are the social objects, specified in paragraph 3 of Article 97 of this Code;
      4) assets with lifetime of more than one year, which are designed for use during more than one year in the activity, aimed at receiving income, received by an authorized administrator in an authorized administration under an agreement on authorized administration or under any other act on foundation of authorized administration of property.
      2. The fixed assets shall not include:
      1) basic assets and intangible assets which are put into operation by a subsoil user before the beginning of the extraction after commercial discovery and which are accountable for taxation purposes in accordance with article 111 of this Code;
      1-1) the assets, for which calculation of depreciation charges in accordance with international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, shall not be performed, except for biological assets and the assets, specified in sub-paragraphs 2), 3) and 4) of paragraph 1 of this Article;
      2) a land;
      3) the museum treasures;
      4) the monuments of architecture and art;
      5) a construction for public use: roads, sidewalks, boulevards, public gardens;
      6) an incomplete capital construction
      7) the objects, related to Film Fund;
      8) the national standards of measurement units of the Republic of Kazakhstan;
      9) the basic assets, the cost of which is previously attributed to deductions in accordance with the tax legislation of the Republic of Kazakhstan, which operated until January 1, 2000;
      10) the intangible assets with undetermined lifetime which are recognized as such and accounted in the accounting balance of a taxpayer in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      11) the assets, put into operation within an investment project under the contracts with provision of the right of additional deductions form the total annual income, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments;
      11-1) the assets, put into operation within an investment project under the contracts with provision of exemption from payment of the corporate income tax, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments, in a part of the amount, attributed to deduction before January 1, 2009;
      12) objects of preferences during three tax periods following the tax period of putting these objects in operation, except for the cases, provided by paragraph 13 of Article 118 of this Code;
      13) assets with lifetime of more than one year which are the social objects, provided by paragraph 2 of Article 97 of this Code;
      Footnote. Article 116 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2011).

Article 117. Determination of the cost balance

      1. Accounting of fixed assets shall be performed for the groups, formed in accordance with theification, established by an authorized state body on technical regulation and metrology in the following order:

No. in order

No. groups

Name of the fixed assets

1

2

3

1.

I

Buildings, constructions, except for oil, gas wells and transmission devices

2.

II

Machinery and equipment, except for Oil and Gas machinery and equipment, and computers and equipment for information processing

3.

III

Computers, software and equipment for information processing

4.

IV

Fixed assets, which are not included into other groups, including oil, gas wells, transmission devices, machinery and equipment of Oil and Gas

      Each object of group I shall equate with a subgroup.
      2. The final amounts, called the costs balance of a subgroup (group I), a group, shall be determined for each subgroup (group I), group at the end and the beginning of a tax period.
      The cost balance of group I shall consist of the cost balances of subgroups for each object of basic means and cost balance of a subgroup, formed in accordance with sub-paragraph 2) of paragraph 3 of Article 122 of this Code;
      3. The residual value of fixed assets of group I is the cost balance of subgroups at the beginning of a tax period, taking into account the adjustments made in the tax period in accordance with Article 122 of this Code.
      4. Fixed assets shall be accounted for:
      1) group I - in the context of the fixed assets, each of which forms a separate subgroup of the cost balance of a group;
      2) groups II, III and IV - in the context of the cost balances of groups.
      5. The received fixed assets shall increase the appropriate balances of subgroups (for group I), groups (for the rest of the groups) on the cost, determined in accordance with Article 119 of this Code in the order, established by this Article.
      6. The retired fixed assets shell decrease the appropriate balances of subgroups (for group I), groups (for the rest of the groups) on the cost, determined in accordance with Article 119 of this Code in the order, established by this Article.
      7. The cost balance of a subgroup (group I), a group at the beginning of a tax period shall be determined as:
      the cost balance of a subgroup (group I), a group at the end of the previous tax period
      minus
      the amount of depreciation charges, calculated in the previous tax period,
      minus
      the adjustments, made in accordance with Article 121 of this Code.
      The value of the cost balance of a subgroup (group I), a group at the beginning of a tax period shall not be negative.
      8. The cost balance of a subgroup (group I), a group at the end of a tax period shall be determined as:
      the cost balance of a subgroup (group I), a group at the end of a tax period
      plus
      the received at the tax period fixed assets
      plus
      the retired at the tax period fixed assets
      plus
      the adjustments made in accordance with paragraph 3 of Article 122 of this Code.
      9. An entrusted administrator shall be obliged to form separate cost balances of group (subgroups) in the part of the cost, which is not attributed to deductions before January 1, 2009, on the fixed assets, put into operation before and (or) after January 1, 2009 within an investment project under the contracts with provision of exemption from the corporate income tax, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments.
      Footnote. Article 117 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 118. Receipt of the fixed assets

      1. Fixed assets upon the receipt, including those, under a contract on financial leasing and by transfer from the inventories, shall increase the cost balance of groups (subgroups) by the primary cost of these assets.
      The recognition for taxation purposes of receipt of the fixed assets shall mean the inclusion of the received assets in the fixed assets.
      2. Unless otherwise provided by this Article, the primary cost of the fixed assets shall include the expenses, incurred by a taxpayer until the date of putting the fixed asset into operation. These expenses shall include the costs of purchase of a fixed asset, its production, building, amounting and installation, and other costs increasing its value in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for:
      the costs (expenses), which are not subjected to deduction in accordance with this Code;
      the costs (expenses), attributed to deductions in accordance with the second part of paragraph 12 of Article 100 of this Code;
      the costs (expenses), which a taxpayer shall have the right to deduct on the basis of paragraphs 6 and 13 of Article 100 of this Code, as well Articles 100-114 of this Code;
      depreciation charges;
      the costs (expenses), emerged in the accounting and are not considered as the costs for taxation purposes in accordance with paragraph 15 of Article 100 of this Code.
      3. Unless otherwise provided by this Code, the primary cost of a fixed asset, received via the transfer from the inventories or the assets, designed for selling, shall be its balance cost, determined on the date of this receipt in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      The primary cost of a fixed asset, received via the transfer from the inventories or the assets, designed for selling, the recognition of which as a fixed asset was previously suspended, shall be its balance cost, which is determined on the date of its receipt in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, not exceeding the cost, specified in paragraph 2 of article 119 of this Code.
      4. Upon the gratuitous receipt of the fixed assets, the primary cost of the fixed assets shall be the balance cost of the received assets, specified in the transfer and acceptance act of these assets, taking into account the actual costs which increase the value of these assets during the initial recognition in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for the costs (expenses) which are not included in the primary cost of the fixed assets on the basis of paragraph 2 of this Article.
      5. In receipt as a contribution to the authorized capital of the primary costs of fixed assets is the cost of the contribution, specified in the founding documents of a legal entity, including the actual costs which increase the value of these fixed assets during the initial recognition in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for the costs (expenses) which are not included in the primary cost of the fixed assets taking into account the provisions of paragraph 2 of this Article.
      6. Upon the receipt of fixed assets in connection with the reorganization by merger, accession, separation or segregation of a taxpayer, the primary cost of these fixed assets shall be the balance cost, specified in a transfer act or a separation balance, except for the case, provided by the second part of this paragraph taking, into account the actual costs which increase the value of these assets during the initial recognition in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for the costs (expenses), which are not included in the primary cost of the fixed assets on the basis of paragraph 2 of this Article.
      The cost balance of a subgroup (group) of the newly formed legal entity, created via merger or a legal entity, which accepted other legal entity, shall increase by the amount of the transferred fixed assets on the data of the tax accounting in case that this cost is reflected in the transfer act in accordance with the second part of paragraph 6 of Article 119 of this Code.
      7. In Upon the receipt of the fixed assets by an entrusted administrator into an entrusted administration, the primary cost of these fixed assets shall be:
      1) in case if the assets of a transferor were fixed, - the cost, determined in accordance with paragraph 10 of Article 119 of this Code;
      2) in other cases - the costs, determined by the date of the act of transfer and acceptance of these assets.
      8. Upon the receipt of the fixed assets from an entrusted administrator in connection with termination of the obligations under an entrusted administration, the primary cost of these fixed assets shall be:
      1) in case if these assets of the entrusted administrator were fixed, - the cost, determined in accordance with paragraph 11 of Article 119 of this Code;
      2) in other cases - the cost, determined in accordance with paragraph 10 of Article 119 of this Code and reduced by the amount of depreciation charges. At that, the depreciation charges shall be calculated for each tax period of an entrusted administration, preceded the reporting tax period, based on the marginal depreciation rate, provided by this Code for an appropriate group of fixed assets, applied to the primary cost, which is reduced by the amount of depreciation charges for previous periods.
      9. Upon the receipt of the fixed assets by concessionaire (legal successor or a legal entity, specially created solely by the concessionaire for realization of a concession contract) under a concession contract, the primary cost of these fixed assets shall be the cost, which is determined in accordance with paragraph 12 of Article 119 of this Code, and in cases of absence of this cost - the cost which is determined by the Government of the Republic of Kazakhstan.
      10. Upon the receipt of the fixed assets by a grantor during the termination of a concession contract, the primary cost of these fixed assets shall be the cost, determined in accordance with paragraph 13 of Article 119 of this Code.
      11. In transfer of a taxpayer, applying the special tax regime for subjects of small business on the basis of the simplified declaration, to a calculation of the corporate income tax in accordance with Article 81 - 149 of this Code, the primary cost of the fixed assets shall be the balance cost of basic assets, investments in real estate, intangible and biological assets, used in the special tax regime, determined in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting not taking into account depreciations and re-evaluations on the date of the transfer to the generally accepted order of taxes calculation.
      12. The fixed assets of group I, which were previously replaced in connection with temporary termination of use in the activity, aimed at receiving income, shall be included in the cost balance of group I of the fixed assets in the tax period, when these fixed assets were put into operation for the activity, aimed at receiving income, at the cost of the replacement, taking into account those, attributable to increase of value of these assets in accordance with Article 122 of this Code.
      13. The assets, for which preferences are withdrawn, shall be included in the cost balance of a group (subgroup) in the cases, specified in paragraph 4 of Article 125 of this Code, at the primary cost, determined in the order, established by paragraph 2 of this Article.
      14. The object of preferences after expiration of three tax periods following the tax period of putting this object into operation, except for the assets, specified in paragraph 13 of this Article, shall be included in the cost balance of a group (subgroup) in the case, specified in paragraph 6 of Article 125 of this Code, at zero cost.
      Footnote. Article 118 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No. 167-IV (shall be enforced from 01.01.2009); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 119. Replacement of the fixed assets

      1. Unless otherwise provided by this Article, the retirement of the fixed assets is termination of recognition of these assets in the accounting as the basic assets, investments in real estate, intangible and biological assets, except for the cases of termination of the recognition as a result of full depreciation and (or) devaluation, and the transfer to the assets designed for selling.
      Recognition for taxation purposes of retirement of the fixed assets shall mean the exclusion of the replaced assets from the fixed assets.
      2. Unless otherwise provided by this Article, the cost balance of a subgroup (group) shall be reduced by the balance cost of the replaced fixed assets, determined in accordance with the international standards of financial reporting and requirement of the legislation of the Republic of Kazakhstan on accounting and financial reporting on the date of replacement.
      3. In realization of the fixed assets, including those under a contract of leasing, without their transfer to the inventories, the cost balance of a subgroup (group) shall be decreased by the cost of realization, except for the value-added tax.
      If a sale contract, including a sale contract of company as the property complex, does not determine the cost of realization in the context of the fixed assets objects, the cost balance of the subgroup (group) shall decrease by the balance cost of the replaced fixed assets, determined in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting on the date of realization.
      4. In gratuitous transfer of the fixed assets, the cost balance of a subgroup (group) shall be decreased by the balance cost of the transferred assets according to the data of accounting, specified in the transfer and acceptance act of these assets.
      5. In transfer of the fixed assets as a contribution to the authorized capital, the cost balance of a subgroup (group) shall be decreased by the cost, determined in accordance with the civil legislation of the Republic of Kazakhstan.
      6. Unless otherwise provided by this Code, in replacement of the fixed assets as a result of the reorganization by merger, accession, separation or segregation, the cost balance of a subgroup (group) of a legal entity, undergoing reorganization, shall decrease by the balance cost of the transferred assets, specified in the transfer act or the separation balance.
      In the reorganization by merger, accession, the taxpayers shall have the right for purposes of tax accounting to reflect in the transfer act the cost of the transferred fixed assets according to the data of tax accounting of a legal entity, undergoing reorganization:
      1) on fixed assets of group I - residual value of the fixed assets, calculated in the order, provided by paragraph 3 of Article 117 of this Code;
      2) on the fixed assets of groups II, III, IV provided the transfer of all fixed assets of a group - the amount of cost balance of the group, calculated in the order, established by paragraph 8 of Article 117 of this Code.
      The cost balance of a subgroup (group) of a legal entity, undergoing reorganization by merger, accession shall decrease by the amount of the transferred fixed assets according to the data of the tax accounting, reflected in the transfer act in accordance with this paragraph.
      7. In withdrawal of property by a founder, a participant, the cost balance of a subgroup (group) shall decrease by the cost, determined in an agreement between the founders, participants.
      8. In loss, destruction, damage of fixed assets:
      1) in case of insurance of the fixed assets - the cost balance of a subgroup (group) shall decrease by the cost equal to the amount of insurance payments to a policy holder by an insurance company in accordance with an insurance contract.
      2) in absence of insurance of the fixed assets of group I - the cost balance of appropriate groups shall decrease by the residual value of the fixed assets, calculated in the order, specified by paragraph 3 of Article 117 of this Code;
      3) in absence of insurance of the fixed assets, except for the fixed assets of group I, deduction shall not be reflected.
      9. When a lessee returns an object of financial leasing to a lessor, the cost balance of a subgroup (group) shall decrease by the positive disparity between the cost of purchase of the financial leasing object and the amount of leasing payments for the period from the date of return of the leasing object, decreased by the amount of remuneration for financial leasing.
      10. In transfer of the fixed assets to an entrusted administration, the cost balance of a group (subgroup) shall decrease:
      1) for group I - by the residual value of the fixed assets;
      2) for groups II, III, IV - by the balance cost, determined in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.
      11. An entrusted administrator in termination of the obligation for entrusted administrator shall decrease the cost balance of a group (subgroup):
      1) for group I - on the residual value of the fixed assets, determined in the order, specified in paragraph 3 of Article 117 of this Code;
      2) for groups II, III, IV:
      in transfer of all assets of a group - on the amount of the cost balance of a group, calculated in the order, specified by paragraph 8 of Article 117 of this Code;
      in other cases - on the primary cost of the transferred assets, determined in accordance with Article 118 of this Code and decreased by the amount of depreciation charges. At that, the depreciation charges shall be calculated for each tax period of an entrusted administration, which precede the reporting tax period on the basis of the marginal rate of depreciation, specified in this Code for an appropriate group of the fixed assets, applied to the primary cost, reduced by the amount of depreciation charges for the previous period.
      12. In transfer of the fixed assets to a concessionaire under a concession agreement, the cost balance of a subgroup (group) of a grantor shall decrease:
      1) for group I - by the residual value of the fixed assets, calculated in the order, provided by paragraph 3 of Article 117 of this Code;
      2) for groups II, III, IV - by the cost, determined in the order, established by the Government of the Republic of Kazakhstan.
      13. In transfer of the fixed assets to a grantor during the termination of a concession contract, the cost balance of a group (subgroup) of a concessionaire shall decrease:
      1) for group I - by the residual value of the fixed assets, calculated in the order, provided by paragraph 3 of Article 117 of this Code;
      2) for groups II, III, IV - for the cost, determined in the order, established by the Government of the Republic of Kazakhstan.
      14. In temporary termination of use of the fixed assets in the activity, aimed at receiving income:
      1) for group I - the cost balance of appropriate subgroups shall decrease by the residual value of the fixed assets, calculated in the order, provided by paragraph 3 of Article 117 of this Code. The decrease of the cost balance of the subgroup shall be performed in the case when the tax period of the temporary withdrawal of the assets from operation and its return into operation after the temporary termination of use do not match.
      2) for groups II, III, IV the deduction shall not be reflected.
      Temporary termination of use of the fixed assets shall include the temporary replacement of the assets without termination of recognition of these assets in the accounting as the basic assets, investments in real estate, intangible and biological assets.
      Footnote. Article 119 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No. 167-IV (shall be enforced from 01.01.2009); dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012). 

Article 120. Calculation of depreciation charges

      1. The cost of fixed assets shall be attributed to deduction via calculation of depreciation charges in the order and under conditions, established by this Code.
      2. Unless otherwise provided by this Article, the depreciation charges for each group shall be determined via application of depreciation standards, specified in the accounting policy, which shall not exceed the marginal rates, established by this paragraph, to the cost balance of a subgroup, a group at the end of a tax period:

No. in order

No. of groups

Name of the fixed assets

Marginal rate of depreciation (%)

1

2

3

4

1.

I

Buildings, constructions, except for oil, gas wells and transmission devices

10

2.

II

Machinery and equipment, except for the machinery and equipment of Oil and Gas, and computers and equipment for information processing

25

3.

III

Computers, software and equipment for information processing

40

4.

IV

Fixed assets, which are not included in other groups, including oil, gas wells, transmission devices, machinery and Oil and Gas equipment

15

      2-1. The depreciation charges for the cost balances of the groups (subgroups), specified in paragraph 10 of Article 117 of this Code shall be determined via application of the marginal rates of depreciation, specified by this Article, to these cost balances of the groups (subgroups) at the end of a tax period.
      3. For buildings, constructions, except for oil, gas wells and transmission devices, the depreciation payments shall be determined for each object separately.
      4. In case of liquidation or reorganization of a taxpayer, the transfer of the legal entity, applying the special tax regime for subjects of small business on the basis of the simplified declaration, to the calculation of the corporate income tax in accordance with Article 81-149 of this Code, and in termination of application of the special tax regime for legal entities-producers of agricultural products, aquaculture production (fish farming) and the rural consumer cooperatives, the depreciation charges shall be adjusted on the period of the activity in a tax period.
      5. A taxpayer shall have the right to recognize buildings and constructions for production purposes, machinery and equipment corresponding with the provision of paragraph 2 of Article 123 of this Code, first put into operation in the Republic of Kazakhstan:
      as the fixed assets and attribute their cost to deductions in the order, established by Article 116 - 122 of this Code, or
      as the objects of preferences and attribute their cost to deductions under the conditions and in the order, established by Article 123 - 125 of this Code.
      6. A subsoil user shall have the right to calculate depreciation on double rate of depreciation for the fixed assets, first put into operation in the Republic of Kazakhstan, if these fixed assets were used for receiving the total annual income of no less than three years. These fixed assets shall be accounted separately from the cost balance of a group in the first tax period of exploitation.
      The provisions of this paragraph shall be applied to the fixed assets only which simultaneously correspond with the following conditions:
      1) they are the assets, which have the direct cause-effect relation with carrying out the activity under a contract (contracts) on subsurface use because of the specifics of their use;
      2) the further expenses, incurred by a subsoil user for these assets, shall not be distributed between the activity under a contract (contracts) for subsoil use and non-contract activity in the tax accounting.
      Footnote. Article 120 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.01.2010 No. 242-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012). 

Article 121. Other deductions of the fixed assets

      1. After retirement, except for the gratuitous transfer, of a fixed asset of a subgroup (group), the amount of the cost balance of the subgroup at the end of a tax period shall be recognized as the loss from retirement of the fixed assets of group I.
      The cost balance of this subgroup shall be equated with zero and shall not be subjected to deduction.
      2. After retirement of all fixed assets of a group (for groups II, III, IV), the cost balance of the appropriate group at the end of a tax period shall be subjected to deduction, unless otherwise provided by this Article.
      3. In gratuitous transfer of all fixed assets of a subgroup (for group I) or a group (for groups II, III, IV), the cost balance of the appropriate subgroup or group at the end of a tax period shall be equated with zero and shall not be subjected to deduction.
      4. A taxpayer shall have the right to deduct the amount of the cost balance of a subgroup (group) at the end of the tax period, which is less than 300-fold amount of monthly calculation index, established by the Law on the Republican Budget and which operates on the last date of a tax period.
      Footnote. Article 121 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2).

Article 122. Deduction of further expenses

      1. Further expenses are the actual expenses, incurred during exploitation, repair, reconstruction, modernization, maintenance and liquidation of the assets, specified in paragraph 2 of this Article, including those, incurred at the expense of the reserve funds of a taxpayer, except for the expenses of subsoil users, incurred at the expense of the liquidation fund, contributions to which are attributed to deductions in accordance with Article 107 of this Code.
      2. Further expenses, except for those, specified in paragraph 3 and 6 of this Article and the further expenses which, in accordance with paragraph 4 of Article 87 of this Code, increase the primary cost of the assets, which are not subjected to depreciation, shall be subjected to deductions in the tax period when they actually incurred.
      The provision of this paragraph shall be applied to the following assets:
      1) fixed assets and (or)
      2) basic assets, investments in real estate, intangible and biological assets which are taken into account in the accounting of a taxpayer in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting and are designed for use in the activity, aimed at receiving income, except for the assets, specified:
      in sub-paragraph 1) of this paragraph;
      in sub-paragraph 1) of paragraph 2 of Article 116 of this Code - in the period from the date of the beginning of the extraction after commercial discovery;
      in sub-paragraphs 6), 13) of paragraph 2 of Article 116 of this Code.
      3. Unless otherwise provided by this Article, the amount of further expenses, subjected in the accounting to attribution to increase of the balance cost of the assets, specified in sub-paragraph 12) of paragraph 2 of Article 116 of this Code, sub-paragraph 1) of paragraph 2 of this Article, and the further expenses, specified in paragraph 5 of Article 125 of this Code:
      1) shall increase the cost balance of a group (subgroup) which is appropriate to the of an asset;
      2) shall form an appropriate cost balance of a group (subgroup) which is appropriate to the of an asset at the end of current tax period, if there is no cost balance of a group (subgroup) which is appropriate to the of an asset.
      Further expenses, provided by this paragraph, shall be recognized for taxation purposes in the tax period when they were attributed to the growth of the balance cost of assets in the accounting, except for the case, provided by paragraph 12 of Article 118 of this Code.
      4. The amount of further expenses, incurred by a lessee in respect of the leased assets shall be deducted.
      5. Further expenses for reconstruction, modernization of buildings and construction of buildings and for production purposes, machinery and equipment shall be subjected to deductions via the choice of the taxpayer, who has the right to apply the investment tax preferences, in accordance with paragraph 3 of this Article or Articles 123 - 125 of this Code.
      6. For the assets, specified in sub-paragraph 1) of paragraph 2 of Article 116 of this Code, the amount of further expenses, incurred from the date of commercial discovery of mineral resources, which is subjected to attribution in the accounting to the growth of the balance cost of these assets, shall increase the amount of the accumulated expenses for the group of depreciable assets, specified in paragraph 1 of Article 111 of this Code at the end of a tax period, including the case when this amount equals zero at the end of a tax period.
      The further assets, provided by this paragraph, shall be recognized for taxation purposes in the tax period when they were attributed in the accounting to increase of the balance cost of the assets.
      Footnote. Article 122 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9). 

§ 4. Investment tax preferences

Article 123. Investment tax preferences

      1. Investment tax preferences (hereinafter - preferences) shall be applied upon the choice of a taxpayer in accordance with this Article and Articles 124, 125 of this Code and consist of attribution to deductions of the cost of preference objects and (or) further expenses for reconstruction, modernization.
      Legal entities of the Republic of Kazakhstan, except for those, specified in paragraph 6 of this Article, shall have the right to apply preferences.
      2. Objects of preferences shall include the buildings and constructions for production purposes, machinery and equipment first put into operation in the Republic of Kazakhstan, which correspond with the following conditions during no less than three tax periods following the reporting tax period:
      1) they are the assets, specified in sub-paragraph 2) of paragraph 1 of Article 116 of this Code, or they are basic assets;
      2) they are used by a taxpayer, who applied preferences in the activity, aimed at receiving income;
      3) they are not the assets, which have the direct cause-effect relation with carrying out the activity under a contract (contracts) on subsurface use because of the specifics of their use;
      4) the expenses, incurred by a subsoil user for these assets shall not be subjected to distribution between the activity under a contract (contracts) on subsoil use and non-contract activity in the tax accounting;
      Note of the RCLI!
      Sub-paragraph 5) shall be enforced from 01.01.2012.
      5) they are not the assets, put into operation within an investment project under the contracts, concluded before 1 January, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments.
      3. Further expenses for reconstruction, modernization of buildings and constructions for production purposes, machinery and equipment shall be attributed to deductions in the tax period when they are actually incurred, when these buildings and constructions, machinery and equipment simultaneously correspond with the following conditions:
      1) they shall be taken into account in the accounting of a taxpayer as the basic means in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;
      2) they are designed for use in the activity, aimed at receiving income, during no less than three tax periods following the tax period of putting into operation after the reconstruction, modernization;
      3) they are temporarily taken out of operation for the period of reconstruction, modernization;
      4) they are not the assets, which have the direct cause-effect relation with carrying out the activity under a contract (contracts) on subsoil use because of the specifics of their use;
      5) the expenses, incurred by a subsurface user for these assets, shall not be subjected to distribution between the activity under a contract (contracts) on subsoil use and non- contract activity in the tax accounting.
      For the purposes of application of preferences, reconstruction, modernization of a basic asset is the of further expenses, the result of which simultaneously is:
      the change, including renovation, of the construction of the basic asset;
      the increase of lifetime of the basic asset for more than three years;
      the improvement of technical characteristics of the basic asset in comparison with its technical characteristics at the beginning of the calendar month when this basic asset was temporarily taken out of operation to perform reconstruction, modernization;
      4. For the purposes of application of preferences, the buildings for production purposes shall include nonresidential buildings (parts of nonresidential buildings), except for:
      the commercial buildings (parts of such buildings);
      the buildings for cultural and entertainment purpose (parts of such buildings);
      the buildings of hotels, restaurants and other buildings for short-stay accommodation, catering (parts of such buildings);
      the office buildings (parts of such buildings);
      the garages for motor vehicles (parts of such buildings);
      the parking (part of a building).
      For the purposes of application of preferences, the constructions for production purposes shall include the constructions, except for the construction of sports and recreation, cultural and entertainment facilities, hotel and restaurant purpose, for administrative purposes, for parking.
      5. For the purposes of application of preferences, a newly constructed building (a part of the building) first put into operation in the Republic of Kazakhstan is:
      during construction upon conclusion of a building contract - transfer of the construction object by a builder to a client after signing the act on commissioning of the building (a part of the building) by the State Acceptance Commission;
      in the other cases - when signing the act on commissioning of the building (a part of the building) by the State Acceptance commission;
      6. The taxpayers shall not have the right to apply preferences if they observe one or more of the following conditions:
      1) taxation of a taxpayer shall be performed in accordance with part 5 of this Code;
      2) a taxpayer shall perform production and (or) realization of the excisable goods, specified in sub-paragraphs 1) - 4) of Article 279 of this Code;
      3) a taxpayer shall apply the special tax regime, provided by Chapter 63 of this Code.
      Footnote. Article 123 as amended by the Law of the Republic of Kazakhstan dated 01.12.2008 No. 100-IV (shall be enforced from 01.01.2012); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2012).

Article 124. Application of preferences

      1. Application of preferences shall be performed by the following methods:
      1) the method of deduction after putting an object into operation;
      2) the method of deduction before putting an object into operation;
      2. Application of the method of deduction after putting an object into operation is the deductions of the primary cost of objects of preferences, as determined in accordance with paragraphs 2 and 3 of Article 125 of this Code, in equal shares during the first three tax periods of exploitation or the flat payment in the period of putting into operations.
      3. Application of the method of deduction before putting an object into operation is the deductions of the costs of building, production, purchase, mounting and installation of objects of preferences, and the costs of reconstruction, modernization of buildings for production purposes, machinery and equipment before their putting into operation in the tax period when these costs were actually incurred.
      4. The Preferences shall be cancelled from the moment of their application and a taxpayer shall be obliged to reduce deductions by the amount of preferences for each tax period when they were applied, if during three tax periods, following the period of commissioning of buildings and constructions for production purposes, machinery and equipment, for which the preferences were applied, one of the following cases occurs:
      1) violation of the provisions of paragraphs 2 - 4 of Article 123 of this Code by a taxpayer;
      2) there is a case when a taxpayer, who applied the preferences or his/her legal successor, in the case of reorganization of this taxpayer, meets the provisions of paragraph 6 of Article 123 of this Code.

Article 125. Specifics of the tax accounting of the objects of preferences

      1. A taxpayer shall perform the accounting of objects of preferences and further expenses for reconstruction, modernization of buildings and constructions for production purposes, machinery and equipment separately from the fixed assets during three tax periods following the tax period of commissioning the buildings and constructions for production purposes, machinery and equipment, for which the preferences were applied, unless otherwise provided by this Article.
      The objects of preferences and the further expenses for reconstruction, modernization of buildings and constructions for production purposes, machinery and equipment shall be accounted in the context of each object, for which a preference was applied.
      2. The primary cost of the object of preference, which is a basic asset, shall include the expenses, incurred by a taxpayer before the date of commissioning this object. These expenses shall include the costs of the object, its production, building, mounting and installation, and other costs increasing its value in accordance with the international standards of financial reporting and requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for:
      the costs (expenses), which are not subjected to deductions in accordance with this Code;
      the costs (expenses), attributed to deductions in accordance with the second part of paragraph 12 of Article 100 of this Code;
      the costs (expenses), which a taxpayer shall have the right to deduct according to the paragraphs 6 and 13 of Article 100 of this Code and Articles 101 - 114 of this Code;
      depreciation charges;
      the costs (expenses), which appear in the accounting and which are not considered as the expense for taxation purposes in accordance with paragraph 15 of Article 100 of this Code.
      3. The primary cost of an object of preferences, which is the asset, specified in sub-paragraph 2) of paragraph 1 of Article 116 of this Code, shall be determined in the order, specified in paragraph 9 of Article 118 of this Code.
      4. The assets, for which preferences were cancelled, shall be recognized as the fixed assets from the date of putting them into operation in accordance with the provisions of paragraph 1 of Article 116 of this Code and shall be included in the cost balance of a group (subgroup), appropriate to the of this asset in the order, specified by Articles 117 and 118 of this Code;
      5. In cancellation of preferences for further expenses for reconstruction, modernization of buildings and constructions for production purposes, machinery and equipment, these expenses shall be taken into account in the order, defined by paragraph 3 of Article 122 of this Code.
      6. An object of preferences after three tax periods, following the tax period of putting the object of preference into operation, except for those, specified in paragraph 4 of this Article, shall be recognized as the fixed asset in accordance with the provisions of paragraph 1 of Article 116 of this Code and shall be included in the cost balance of a group (subgroup), appropriate to the of this asset in the order, provided by Articles 117 and 118 of this Code.
      Footnote. Article 125 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

§ 5. Derivative financial instruments

Article 126. Basic provisions

      1. In case of appliance of a derivative financial instrument for the purposes of hedging or in implementation by delivering the basic asset, the tax accounting of the derivative financial instrument shall be performed in accordance with Articles 129, 130 of this Code.
      2. The Loss from derivative financial instruments shall be determined in accordance with Article 136 of this Code and shall be transferred in accordance with Article 137 of this Code, taking into account Articles 129, 130 of this Code.

Article 127. Income from derivative financial instrument, except for a swap

      1. The Income from derivative financial instruments, except for the swap, is an excess of inpayments over the expenses, which shall be determined in accordance with this Article. For purposes of tax accounting, the income shall be determined at the date of implementation or early termination of a derivative financial instrument.
      2. The inpayments for a derivative financial instrument are the payments which are receivable (received) for this derivative financial instrument in the intermediate calculations during the period of a transaction and on the date of implementation or early termination of the derivative financial instrument.
      3. The Expenses from a derivative financial instrument are the payments which are payable (paid) for this derivative financial instrument in the intermediate calculations during the period of a transaction and on the date of implementation or early termination of the derivative financial instrument. 

Article 128. Income from a swap

      1. The income from a swap is an excess of inpayments over the expenses, which shall be determined in accordance with this Article. For the purposes of tax accounting, the income from a swap shall be determined at the end of the reporting tax period.
      2. The inpayments for a swap are the payments which are receivable (received) for this swap during the reporting tax period.
      3. The Expenses from a swap are those payable (paid) during the reporting tax period for this swap.

Article 129. Specifics of the tax accounting for hedging operations

      1. Hedging are the operations with derivative financial instruments, performed in order to reduce potential losses as a result of unfavorable change in value or other index of a hedging object. The hedging objects are the assets and (or) obligations, and money flows, related to these assets and (or) obligations or with the expected transactions.
      2. In order to confirm reasonability of attributing the operations with derivative financial instruments to the hedging operations, a taxpayer, when submitting the tax declarations, shall submit the calculation, confirming that performance of these operations leads (may lead) to reduction of potential losses (lost profits) on transactions with a hedging object.
      3. The income or loss from hedging operations shall be taken into account for the purposes of tax accounting in accordance with the provisions of this Code, determined for a hedging object.
      4. The income or loss from hedging operations shall be recognized in the tax period, for which it is determined for the purposes of tax accounting.

Article 130. Specifics of the tax accounting in implementation by a delivery of the basic asset

      1. If implementation of a derivative financial instrument occurs by a purchase or realization of the basic asset, the expenses, which are payable (paid), and the payments, which are receivable (received) as a result of purchase or realization of this basic asset, shall not be attributed to the expenses and inpayments for derivative financial instruments.
      2. The inpayments and expenses from the operations, specified in paragraph 1 of this Article, shall be taken into account for tax accounting purposes in accordance with the provisions of this Code, which are applied to the income and deductions for the basic asset.
      Footnote. Article 130 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009). 

§ 6. Adjustments to income and deductions

Article 131. Basic provisions

      Adjustment is an increase or reduction of the amount of income or deduction of the reporting tax period within the amount of an earlier recognized income or deduction in the cases, established by Article 132 of this Code.

Article 132. Adjustments to income and deductions

      1. Income or deductions shall be adjusted in the cases of:
      1) of full or partial return of goods;
      2) of changes of the conditions of a transaction;
      3) of change in the cost, compensation for the realized or purchased goods, executed works, provided services;
      4) of mark downs, discounts on sales;
      5) of change in the amount, payable in the national currency for the realized or purchased goods, executed works, provided services on the basis of the contract conditions;
      6) of cancellation of the claim, to which income adjustment is made in accordance with Paragraph 2 of this Article.
      2. Adjustment to income shall be made by a taxpayer-creditor in cancellation of a claim from:
      a legal entity;
      an individual entrepreneur;
      a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, on the requirements, attributed to the activity of this permanent establishment.
      The adjustment to income, provided by this paragraph shall be made in the cases of:
      1) of failure to demand by a taxpayer-creditor of the satisfaction of the claim upon the liquidation of a taxpayer-debtor on the date of approval of its liquidation balance;
      2) of cancellation of a claim under the implemented court decision;
      The Adjustment shall be made when the following conditions are observed:
      1) presence of the primary document, confirming the existence of a claim;
      2) reflection of a claim in the accounting on the date of the adjustment to income or attribution to the expenses (write-off) in the accounting in the previous periods.
      The provisions of this paragraph shall not be applied to the claims recognized as doubtful in accordance with this Code.
      3. Adjustment to income shall not be made during reduction of the amount of claims in connection with their transfer under a sale contract of a company as the property complex.
      4. Adjustment to income and deductions shall be made in the tax period when the cases, specified in paragraph 1 of this Article, occurred.
      Footnote. Article 132 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).

Chapter 12. REDUCTION OF TAXABLE INCOME AND TAXATION EXEMPTION OF CERTAIN GROUPS OF TAXPAYERS

Article 133. Reduction of taxable income

      1. A taxpayer shall have the right to reduce the taxable income by the followings of expenses:
      1) in the total amount which does not exceed 3 percent of taxable income:
      the amount of excess of the actually incurred expenses over the receivable (received) income in exploitation of the social objects, provided by paragraph 2 of Article 97 of this Code;
      the cost of the property, transferred to a non-commercial organization or the organizations, working in the social sphere on a gratuitous basis. The cost of gratuitously executed works, and provided services shall be determined in the amount of expenses, incurred in connection with execution of works, provision of services. The cost of the transferred property is specified in the act of transfer and acceptance of this property.
      sponsorship and charity when having the decision of the taxpayer based of a request from the person, receiving the support;
      2) 2-fold incurred expenses for salaries of the disabled persons and 50 percent from the amount of the calculated social contribution from salaries and other payments to the disabled persons;
      3) the expenses for education of an individual, who is not employed by a taxpayer, under the condition of conclusion a contract with the individual who has an obligation to work for the taxpayer for at least three years.
      For the purposes of this paragraph, the expenses for education shall include:
      the actually incurred expenses for payment for education;
      the actually incurred expenses for accommodation within the amounts, established by the Government of the Republic of Kazakhstan;
      the expenses for paying a trainee the amount of money, established by the taxpayer, but which does not exceed the amounts, established by the Government of the Republic of Kazakhstan;
      the actually incurred expenses for the journey to the place of education upon the admission and back after completion of education;
      4) the cost of the property, which is gratuitously transferred to the autonomous education institutions, established by paragraph 1 of Article 135-1 of this Code.
      Note of the RCLI!
      The paragraph 1 is supplemented with sub-paragraph 
      5) in accordance with the Law of the Republic of Kazakhstan dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2013).
      2. A taxpayer shall have the right to reduce taxable income for the followings of income:
      1) remuneration for the financial leasing of basic assets, investments into real estate, biological assets;
      2) remuneration for the debt securities, which are on the official list of the Stock Exchange, working in the Republic of Kazakhstan, on the date of assignment of this remuneration;
      3) remuneration for the state issue-grade securities, agency bonds;
      3-1) the income from increase of the value when realizing the state issue-grade securities, reduction by the losses from realization of the state issue-grade securities;
      3-2) the income from increase of the value when realizing agency bonds, reduction by the losses from realization of the agency bonds;
      4) the cost of the property, received in the form of humanitarian aid in case of emergency situations of natural and man-made character and used as intended;
      5) the cost of basic assets, gratuitously received by a republican state enterprise from a state body or a republican state enterprise on the basis of the decision, made by the Government of the Republic of Kazakhstan;
      6) the income from increase of the value when realizing shares, shares of participation in a legal entity or a consortium, reduced by the losses from realization of shares, shares of participation in a legal entity or a consortium. This sub-paragraph shall be applied under simultaneous fulfilling of the following conditions:
      on the date of realization of the shares, shares of participation, a taxpayer has these shares, shares of participation for more than three years;
      a legal entity-issuer or the legal entity, a share of participation in which is realized, or a participant of a consortium who realizes a share of participation in this consortium, is not a subsoil user;
      more than 50 percent of the cost of assets of a legal entity-issuer or the legal entity, a share of participation in which is realized, or the total cost of the assets of the consortium members, a share of participation in which is realized, on the date of this realization is the property of persons (person) who are (is) not subsoil users (user);
      7) the income from increase of the value, when being realized by the method of open tenders on the Stock Exchange, working in the Republic of Kazakhstan, of the securities, which are on the official list of this Stock Exchange, reduced by the losses, which incurred from realization by the open tender method at the Stock Exchange, working in the Republic of Kazakhstan, of the securities, which are on the official list of this Stock Exchange on the date of realizing.
      3. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 133 as amended by the Laws of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 134. Taxation of non-commercial organizations

      1. For the purposes of this Code, a non-commercial organization is an organization, registered in the form, established by the civil legislation of the Republic of Kazakhstan for a non-commercial organization, except for joint-stock companies, institutions and consumer cooperatives, except for the cooperatives of apartment (premises) owners, working in the public interests and corresponding with the following conditions:
      1) it shall not be aimed at receiving income;
      2) it shall not distribute net income of property between the participants.
      2. The income of a non-commercial organization under a contract on implementation of state social order, in the form of remuneration for deposits, grants, entrance and membership fees, contributions of participants of a condominium, sponsorship and charity, gratuitously received property, inpayments and donations on the gratuitous basis shall not be subjected to taxation under observing the conditions, specified in paragraph 1 of this Article.
      For the purposes of this paragraph, the contributions of participants of a condominium are:
      the obligatory payments by owners of premises (apartments), aimed at covering the total expenses for maintenance and exploitation of the joint property;
      the payments by owners of premises (apartments), aimed at covering additional expenses which are not attributed to the obligatory and those, providing necessary exploitation of a house as a whole, entrusted to the owners of the premises (apartments) with their consent;
      a fine in the amount, established by the legislation of the Republic of Kazakhstan charged upon a delay of obligatory payments for general expenses by the owners of the premises (apartments).
      The amounts and the order of contributions of participants of a consortium shall be approved by a general meeting of members of the condominium in the order, established by the legislative act of the Republic of Kazakhstan on housing relations.
      3. In case of inobservance of the conditions, specified in paragraph 1 of this Article, the income of a non-commercial organization shall be taxable in the generally established order.
      4. The income which is not specified in paragraph 2 of this Article shall be taxable in the generally established order.
      At that, a non-commercial organization shall be obliged to keep separate accounting for the income, which is exempted from taxation in accordance with this Article, and the income, which is taxable in the generally established order.
      5. When receiving the income, which is taxable in the generally established order, the amount of expenses of a non-commercial organization, which is attributable to deductions, shall be determined by the choice of a taxpayer based on a proportional or separate method.
      6. According to the proportional method, the amount of expenses, which is attributable to deductions, in the total amount of expenses, shall be determined, taking into account the proportion of the income, which is not specified in paragraph 2 of this Article, in the total amount of the income of a non-commercial organization.
      7. According to the separate method, a taxpayer shall keep the separate accounting for the expenses, attributable to the income, specified in paragraph 2 of this Article and the expenses, attributable to the income, which shall be taxable in the generally established order.
      Footnote. Article 134 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 20); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010).

Article 135. Taxation of organizations working in the social sphere

      1. The income of the organizations, specified by this Article shall not be taxable under observing the conditions, established by this Article.
      2. For the purposes of this Code, the organizations working in the social sphere shall be the organizations which perform thes of activities, specified in this paragraph, income from which is 90 percent of the total annual income of these organizations, taking into account the income in the form of gratuitously received property and remuneration for deposits.
      The activity in the social sphere shall include the followings of activities:
      1) provision of medical services, except for cosmetology, sanatorium and resort;
      2) provision of services of the primary, basic secondary, general secondary, technical and vocational, post-secondary, higher and postgraduate education shall be performed under the appropriate licenses to conduct educational activities, and additional education, early childhood care and education;
      3) the activity in the sphere of science (including scientific research, use, including realization of scientific intellectual property by its author) performing of scientific and (or) scientific and technical activities by subjects, accredited by the authorized body in the field of science, sports (except for sport shows of commercial nature), culture (except for entrepreneurship), provision of services for preservation (except for dissemination of information and propaganda) of historical and cultural heritage and cultural values, objects, listed in the registers of historic and cultural heritage or in the State List of Monuments of History and Culture in accordance with the legislation of the Republic of Kazakhstan, and in the field of social security and social welfare of children, the aged and the disabled persons;
      4) library services.
      The Income of the organizations, defined by this paragraph shall not be taxable when directing them to the implementation of such activities.
      3. For the purposes of this Code, the organizations working in the social sphere shall also include those, meeting the following conditions:
      1) the number of the disabled persons for a tax period is no less than 51 percent of the total number of employees.
      2) the expenses for salaries of the disabled persons for a tax period is no less than 51 percent (in the special organizations, where persons who are visually, acoustically, orally disabled work - no less than 35 percent) from the total expenses for salaries.
      4. The organizations working in the social sphere shall not include the organizations, receiving income from production and realization of the excisable goods.
      5. In violation of the conditions, defined by this Article, the received income shall be taxable in the order, established by this Code.
      Footnote. Article 135 as amended by the Laws of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011); dated 18.02.2011 No. 408-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 15.07.2011 No. 461-IV (shall be enforced upon expiry of six months after its first official publication).

Article 135-1. Taxation of autonomous educational organizations

      1. For the purposes of this Code, autonomous education institutions are:
      1) a non-commercial organization created at the initiative of the First President of the Republic of Kazakhstan - the Leader of the Nation to provide funding for autonomous educational organizations, determined by sub-paragraphs 2) - 5) of this paragraph, the highest governing body of which is the Supreme Guardianship Board;
      2) a non-commercial education institution when observing all of the following conditions:
      it was created by the Government of the Republic of Kazakhstan;
      its highest governing body is the Supreme Guardianship Board, created in accordance with the legislation of the Republic of Kazakhstan;
      it performs one or mores of educational activities, specified by the Laws of the Republic of Kazakhstan:
      primary, secondary and high school;
      post-secondary education;
      higher and postgraduate education;
      additional education;
      3) The National Holding Company in healthcare which simultaneously corresponds with the following conditions:
      it is a joint stock company, created under the decision of the Government of the Republic of Kazakhstan;
      50 and more percent of voting shares of this joint stock company are owned by the person, specified in sub-paragraph 2) of this paragraph;
      it performs the activity in healthcare area in accordance with the legislative acts of the Republic of Kazakhstan;
      4) an organization, except for that, specified in sub-paragraph 3) of this paragraph, if it corresponds with the following conditions:
      50 and more percent of voting shares of (participation shares) this company are owned by the persons, specified in sub-paragraphs 2) and 3) of this paragraph, or it is a non-commercial organization, founded solely by the persons, specified in sub-paragraph 2) of this paragraph;
      no less than 90 percent of income in the total annual income of this organization, taking into account the income in the form of gratuitously received property and remuneration for deposits, are the income, received from carrying out one or severals of the activity:
      provision of medical services (except for cosmetology, sanatorium and resort);
      provision of services on the following levels of activity, established by the Laws of the Republic of Kazakhstan:
      primary, secondary and high school;
      post-secondary education;
      higher and postgraduate education;
      additional education;
      the activity in the sphere of science, namely: scientific and technical, innovational, research, including basic and applied scientific research;
      provision of consulting services on thes of the activities, specified in this paragraph.
      For the purposes of this sub-paragraph, the inpayments from a founder which are received and aimed at implementation of the activities, specified in this paragraph are also the income, received from the aforesaids of activities;
      5) an organization, except for that, specified in sub-paragraph 3) of this paragraph, if it simultaneously corresponds with the following conditions:
      50 and more percent of voting shares (participation shares) of this organization are owned by the persons, specified in sub-paragraphs 2) and 3) of this paragraph or it is a non-commercial organization, founded solely by the persons, specified in sub-paragraph 2) of this paragraph;
      The Income of this organization for the reporting tax period shall be exempted from taxation in case of carrying out one or severals of activities in the sphere of science:
      scientific and technical;
      innovational;
      research activities, including basic and applied scientific research.
      Attribution of the ongoing activities to thes of activities in the sphere of science, specified in sub-paragraph 5) of this paragraph shall be confirmed by the resolution of an authorized state body on science.
      This sub-paragraph shall not be applied to the organizations if they carry out one or severals of activities:
      provision of medical services (except for cosmetology, sanatorium and resort);
      provision of services for the following levels of educational activities, established by the Laws of the Republic of Kazakhstan:
      primary, secondary and high school;
      post-secondary education;
      higher and postgraduate education;
      additional education;
      provision of consulting services on theses of activities.
      2. When determining by an autonomous education institution of the amount of the corporate income tax, payable to the budget, the amount of the calculated corporate income tax shall decrease by 100 percent in accordance with Article 139 of this Code.
      The provision of this paragraph shall not be applied to the periods when the net income or property, received by an autonomous education institution, which is specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article, were distributed among the participants.
      Footnote. The Chapter 12 is supplemented with Article 135-1 in accordance with the Law of the Republic of Kazakhstan dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2011).

Article 135-2. Taxation of an organization specialized in improvement of the quality of credit portfolios of the second tier banks and hundred percent of voting shares of which is owned by the national bank of the Republic of Kazakhstan

      1. The income of an organization, improving the quality of credit portfolios of the second tier banks and hundred percent of voting shares of which belong to the National Bank of the Republic of Kazakhstan shall be exempted from taxation, provided that this income is received from the followings of activities:
      1) purchase of doubtful and bad assets from the second tier banks and their realization;
      2) possession and realization of assets and (or) participation shares in the authorized capital, the rights of claim for which are purchased from the second tier banks by the organization, improving the quality of credit portfolios of the second tier banks;
      3) possession and realization of the shares and (or) bonds, issued and placed by the second tier banks, from which the organization, improving the quality of credit portfolios of the second tier banks, purchased the rights of claim for doubtful and bad assets;
      4) leasing or use of another form of repayable temporary use of the property, received for the rights of claim for legal entities, purchased by an organization, improving the quality of credit portfolios of the second tier banks
      5) placing money in securities.
      At that, attribution of the receivable income to the income, specified in this paragraph, shall be performed in the order, established by the National Bank of the Republic of Kazakhstan upon the agreement with an authorized body.
      2. The income from the activities, which are not mentioned in paragraph 1 of this Article, shall be taxable in the generally established order. At that, an organization, improving the quality of credit portfolios of the second tier banks and hundred percent of which belong to the National Bank of the Republic of Kazakhstan, shall be obliged to keep separate accounting for the income, which is exempted from taxation in accordance with this Article and the income, which is taxable in the generally established order.
      3. In receiving the income, taxable in the generally established order, the amount of expenses of an organization, improving the quality of credit portfolios of the second tier banks and hundred percent of which belong to the National Bank of the Republic of Kazakhstan, which is attributable to deductions, shall be determined upon the proportional or the separate method of according by the choice of this organization.
      4. By according to the proportional method, the amount of expenses, attributable to deductions, shall be determined in the total amount of expenses on the basis of the proportion of the income, received from the activities, which are not specified in paragraph 1 of this Article, in the total amount of income.
      5. By according to the separate method, an organization, improving the quality of credit portfolios of the second tier banks and hundred percent of which belong to the National Bank of the Republic of Kazakhstan, shall keep the separate accounting for the expenses, which are attributed to the income, received from the activities, specified by paragraph 1 of this Article, and the expenses, which are attributable to the income, taxable in the generally established order.
      Footnote. The Code is supplemented with Article 135-2 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced from 01.01.2012 and operate until 01.01.2018).

Chapter 13. LOSSES

Article 136. The concept of losses

      1. A loss from an entrepreneurship is:
      1) an excess of deductions over the total annual income, taking into account the amendments, provided by Article 99 of this Code;
      2) a loss from selling a company as a property complex.
      2. a loss from realization of securities is:
      1) a loss on securities, except for the debt securities, the negative disparity between the cost of realization and the cost of purchase;
      2) a loss on debt securities - is the negative disparity between the cost of realization and the cost of purchase, taking into account depreciation of a discount and (or) bonus on the date of the realization.
      3. A loss on derivative financial instruments, taking into account the specifics of hedging is an excess of expenses over the inpayments, which shall be defined in accordance with Article 127, 128 of this Code.
      4. A loss from realization of the non-depreciable assets, which are specified in sub-paragraphs 1), 2), and 3) of paragraph 2 of Article 87 of this Code, is the negative disparity between the cost of realization and the primary cost of these assets.
      5. A loss from entrepreneurship is not the losses, specified in paragraphs 2, 3 and 4 of this Article and the losses from retirement of the fixed assets of group I.
      Footnote. Article 136 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 137. Postponing of losses

      1. The losses from entrepreneurship and losses from retirement of the fixed assets of group I shall be postponed for the next ten years inclusively to repay them at the expense of the taxable income of these tax periods.
      1-1. The losses from realization of the non-depreciable assets, specified in sub-paragraphs 1), 2) and 3) of paragraph 2 of Article 87 of this Code, shall be compensated at the expense of the income from increase in the value, which is specified in sub-paragraphs 1), 2) and 3) of paragraph 2 of Article 87 of this Code.
      If these losses cannot be compensated in the period when they occurred, they can be postponed for the next ten years inclusive and shall be compensated at the expense of the income from increase in the value, specified in sub-paragraphs 1), 2) and 3) of paragraph 2 of Article 87 of this Code.
      2. Unless otherwise established by this Article, the losses, appeared in realizing securities, shall be compensated at the expense of the income from increase in the value, except for the income from increase in the value, received in realizing the securities, specified in paragraphs 3, 4, 4-1 and 4-2 of this Article.
      If these losses cannot be compensated in the period when they occurred, they can be postponed for the next ten years inclusively and shall be compensated at the expense of the income from increase in the value, received in realizing other securities, unless otherwise provided for by this Article.
      3. The losses appeared from realization of shares, shares of participation in a legal entity or a consortium, shall be compensated at the expense of the income from increase in the value in realizing of the shares, participation shares of a legal entity or a consortium. This paragraph shall be applied under simultaneous fulfillment of the following conditions:
      a taxpayer has the shares and the shares of participation on the date of realization of these shares and shares of participation for more than three years;
      a legal entity - issuer or a legal entity, the share of participation of which is realized, or a participant of a consortium who realizes the share of participation in this consortium shall not be a subsoil user;
      more than 50 percent of the cost of assets of a legal entity-issuer or a legal entity, the share of participation of which is realized, or the total cost of the assets of participants of a consortium, the share of participation of which is realized, shall be the property of a person (persons), who is not (are not) a subsoil user (subsoil users) on the date of this realization.
      4. The losses appeared from realization by the method of open tendering on the Stock Exchange, working in the Republic of Kazakhstan, of the securities, which are on the official lists of this Stock Exchange, shall be compensated at the expense of the income from increase in the value in realizing by the method of open tendering on the Stock Exchange, working in the Republic of Kazakhstan, of the securities, which are on the official lists of this Stock Exchange.
      4-1. The losses, occurred from realization of government-issued securities, shall be compensated at the expense of the income from increase in the value in realizing the government-issued securities.
      4-2. The losses, occurred from realization of agency bonds, shall be compensated at the expense of the income from increase in the value in realizing the agency bonds.
      5. If the losses, specified in paragraphs 3, 4, 4-1 and 4-2 of this Article, cannot be compensated in the period when they took place, they shall not be postponed for the next tax periods.
      6. The losses of a special financial company, received from the activity, implemented in accordance with the legislation of the Republic of Kazakhstan on project funding and securitization, can be postponed in the contracts on securitization during the period of circulation of the bonds, provided by the distinguished assets.
      7. The losses, incurred within application of the special tax regime for legal entities-producers of agricultural products, aquaculture production (fish farming) and rural consumer cooperatives, shall not be postponed for the next tax periods.
      Note of the RCLI!
      Paragraph 7-1 shall be enforced from 01.01.2012 and operate up to 01.01.2018.
      7-1. The losses, incurred by a subsidiary of a bank, which buys doubtful and bad assets of the parental bank, shall not be postponed for the next tax periods.
      8. The losses on derivative financial instruments, taking into account hedging operations, shall be compensated at the expense of the income on derivative financial instruments. If these losses cannot be compensated in the period when they took place, they can be postponed for the next ten years inclusively and shall be compensated at the expense of the income on derivative financial instruments.
      Footnote. Article 137 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.01.2010 No. 242-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012); dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 138. Postponing of losses during reorganization

      The losses, transferred in connection with the reorganization via separation or segregation, shall be distributed in accordance with the share of participation of legal successors in the reorganized taxpayer, and shall be postponed in the order, established by Article 137 of this Code.

Chapter 14. THE ORDER OF CALCULATION AND THE DEADLINES FOR PAYMENT OF THE CORPORATE INCOME TAX

Article 139. Calculation of the amount of the corporate income tax

      1. The corporate income tax, except for the corporate income tax on the net income and the corporate income tax, withheld at the source of payment, shall be calculated for a tax period in the following order:
      Product of the rate, established by paragraph 1 or paragraph 2 of Article 147 of this Code, and the taxable income, reduced by the amount of the income and the expenses, specified in Article 133 of this Code, and the amount of the expenses, postponed in accordance with Article 137 of this Code,
      minus
      the amount of the corporate income tax, on which the set-off is performed in accordance with Article 223 of this Code,
      minus
      the amount of the corporate income tax, withheld in a tax period at the source of payment from the income in the form of a winning, on which the set-off is performed in accordance with paragraph 2 of this Article,
      minus
      the amount of the corporate income tax, withheld at the source of payment from the income in the form of remuneration, transferred in the previous tax periods in accordance with paragraph 3 of this Article,
      minus
      the amount of the corporate income tax, withheld in a tax period at the source of payment from the income in the form of a remuneration, on which the set-off is performed in accordance with paragraph 2 of this Article.
      2. The amount of the corporate income tax, payable to the budget, shall be decreased by the amount of the corporate income tax, withheld at the source of payment from the income in the form of a winning, remuneration if the documents, confirming the withholding of this tax by the source of payment are presented.
      The provision of this paragraph shall not be applied to an organization, working in the social sphere, a non-commercial organization for the corporate income tax, withheld from the source of payment from the income in the form of remuneration for deposits.
      3. If the amount of the corporate income tax, withheld at the source of payment from the income in the form of remuneration, is bigger than the amount of the corporate income tax, payable to the budget, the disparity between the amount of the corporate income tax, withheld at the source of payment and the amount of the corporate income tax, payable to the budget, shall be postponed for the next ten tax periods inclusively and shall sequentially reduce the amounts of the corporate income tax, payable to the budget for these tax periods.
      Footnote. Article 139 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009). 

Article 140. Specifics of calculation and payment of the corporate income tax by certain groups of taxpayers

      A taxpayer, who uses the special tax regime for legal entities-producers of agricultural products, aquaculture production (fish farming) and the rural consumer cooperatives, shall perform calculation of the corporate income tax, taking into account the specifics, established by Article 451 of this Code.
      Footnote. Article 140 as amended by the Law of the Republic of Kazakhstan dated 21.01.2012 No. 242-IV (shall be enforced from 01.01.2011). 

Article 141. Calculation of the amount of advances

      1. Unless otherwise provided by paragraph 2 of this Article, the taxpayers shall calculate and pay advances on the corporate income tax within the current tax period in the order, established by this Code.
      2. The advances on the corporate income tax shall not be calculated and paid, as well as calculations of the amounts of advances on the corporate income tax, payable for the periods before and after handing in the declaration for the corporate income tax for previous tax period, shall not be submitted:
      1) unless otherwise provided by this paragraph, by the taxpayers, whose total annual income including adjustments for the previous tax period, does not exceed the amount equal to 325000-fold amount of the monthly calculation index, established by the Law on the Republican Budget and which operates as of January 1 of the financial year preceding the previous tax period;
      2) by the newly created (appeared) taxpayers - during the tax period when the state (account) registration in justice bodies took place, and during the next tax period,;
      3) by the nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment without opening an affiliate, representative office, a newly registered in the tax bodies as the taxpayers - during the tax period when the registration in the tax bodies took place, and during the next tax period;
      4) by the taxpayers, meeting the conditions of paragraph 1 of Article 134 of this Code;
      5) by the taxpayers, meeting the conditions of paragraph 1 of Article 135-1 of this Code;
      6) by the taxpayers, meeting the conditions of paragraphs 2 and 3 of Article 135 of this Code;
      7) by the taxpayers, meeting the provisions of paragraph 1 of Article 150 of this Code.
      3. The amount of advances on the corporate income tax, which is payable for the period before submission of the declaration for the corporate income tax for the previous tax period, calculated in accordance with paragraph 4 of this Article, shall be paid in equal shares during the first quarter of the reporting tax period.
      The amount of advances on the corporate income tax, which is payable for the period after submission of the declaration for the corporate income tax for the previous tax period, calculated in accordance with paragraphs 6 and 7 of this Article, shall be paid in equal shares during the second, third and fourth quarter of the reporting tax period.
      The amount of an adjustment to advances on the corporate income tax, made in accordance with paragraph 8 of this Article, shall be equally distributed over months of the reporting tax period, for which the deadlines for payment of advances on the corporate income tax are not yet occurred.
      4. Calculation of the amount of the corporate income tax, which is payable for the period before submission of the declaration for the corporate income tax for the previous tax period, shall be submitted for the first quarter of the reporting tax period to a tax body at the location of a taxpayer no later than January 20 of the reporting tax period.
      The amount of advances on the corporate income tax, which is payable for the period before submission of the declaration for the corporate income tax for the previous tax period, shall be calculated in the amount of one-fourth of the total amount of advances, calculated in the calculation of the advances on the previous tax period.
      4-1. In case a taxpayer did not calculate advances on the corporate income tax in the previous tax period, the amount of advances on the corporate income tax, payable for the period before submission of the declaration for the corporate income tax for the previous tax period, shall be calculated on the basis of the estimated amount of the corporate income tax for the current tax period.
      5. Calculation of the amount of advances on the corporate income tax, which is payable for the period after submission of the declaration for the corporate income tax for the previous tax period, shall be presented by a taxpayer within twenty calendar days from the date of its submission for the second, third, fourth quarters of the reporting tax period.
      6. The amount of advances on the corporate income tax, which is payable for the period after submission of the declaration for the corporate income tax for the previous tax period, shall be calculated in the amount of three-fourths of the amount of the corporate income tax, calculated within the previous tax period in accordance with paragraph 1 of Article 139 and Article 199 of this Code.
      7. The taxpayers, who are obliged to calculate and pay the corporate income tax, specified in this Article, who suffered losses for the previous tax period or who do not have any taxable income, shall be obliged within twenty calendar days from the date of submission of the declaration for the corporate income tax to submit to a tax body the calculation of the amount of advances on the basis of the estimated amount of the corporate income tax for the current tax period.
      8. Taxpayers shall have the right, during the reporting tax period, to submit the additional calculation of the amount of advances on the corporate income tax, except for the additional calculation of the amount of advances on the corporate income tax payable within the period before submission of the declaration for the corporate income tax for the previous tax period. At that, the additional calculation of the amount of advances for the corporate income tax, payable for the period after submission of the declaration for the corporate income tax for the previous tax period, shall be made, taking into account the estimated amount of income for the reporting tax period and shall be submitted within the months of the reporting tax period, for which the deadlines for payment of advances on the corporate income tax are not yet occurred.
      The amounts of advances on the corporate income tax, payable for the period after submission of the declaration for the corporate income tax for the previous period, taking into account the adjustments, specified in the additional calculations of the amounts of payments for the corporate income tax, cannot have negative value.
      The additional calculation of the amounts of advances on the corporate income tax payable for the period after submission of the declaration for the corporate income tax for the previous tax period can be submitted no later than December 20 of the tax period.
      9. In prolonging the deadline for presenting the declaration for the corporate income tax for the previous tax period:
      1) the amount of advances on the corporate income tax, payable for the period after submission of the declaration for the corporate income tax for the previous tax period, shall be calculated for the period, for which the deadline for submission of the declaration for the corporate income tax for the previous tax period was prolonged;
      2) a taxpayer shall pay the amount of an advance for the period, for which the deadline for submission of this declaration was prolonged, taking into account the estimated amount of the advance, payable for the period after submission of the declaration for the corporate income tax for the previous tax period.
      The positive disparity between the amounts of advances for the period, for which the deadline for submission of this declaration was prolonged, calculated in the amount of advances on the corporate income tax, payable for the period after submission of the declaration for the corporate income tax for the previous tax period and the amount of an advance, paid for the period for which the deadline for submission of this declaration was prolonged, shall be recognized as arrears of advances on the corporate income tax.
      10. Excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV.
      11. A newly formed legal entity in the result of reorganization via separation or segregation shall calculate advances on the corporate income tax in the tax period, when this reorganization was implemented, and during the next two tax periods in case that the legal entity, reorganized via separation or segregation calculated the advances on the corporate income tax in the tax period, when this reorganization was implemented.
      The amount of advances on the corporate income tax, payable for the period before and after submission of the declaration for the corporate income tax for the previous tax period, shall be calculated by a newly formed legal entity in the result of reorganization via separation or segregation, taking into account the estimated amount of the corporate income tax for the current tax period within the tax period, when reorganization via separation or segregation was implemented, and during the next two tax periods.
      Footnote. Article 141 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (the order of enforcement see Article 2); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9). 

Article 142. The deadlines and order for payment of the corporate income tax

      1. Taxpayers shall pay the corporate income tax at the location.
      The nonresident legal entities, working in the Republic of Kazakhstan through a permanent establishment, shall pay the corporate income tax at the location of the permanent establishment.
      2. The taxpayers, specified in paragraph 1 of Article 141 of this Code shall pay advances on the corporate income tax for each month to the budget during the tax period, established by Article 148 of this Code no later than the 25th of each month in the amount, specified in accordance with Article 141 of this Code.
      3. The amount of advances, paid to the budget during a tax period, shall be set off by the payment of the corporate income tax, calculated on the declaration for the corporate income tax for the reporting tax period.
      A taxpayer shall pay the corporate income tax on the results of a tax period no later than ten calendar days after the deadline, established for submission of the declaration.
      Footnote. Article 142 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Chapter 15. THE CORPORATE INCOME TAX WITHHELD AT THE SOURCE OF PAYMENT

Article 143. The income taxable at the source of payment

      1. The income taxable at the source of payment, unless otherwise provided by paragraph 2 of this Article, shall include:
      1) the winnings, paid by a legal entity, which is a resident of the Republic of Kazakhstan, a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, to a legal entity, which is a resident of the Republic of Kazakhstan, a nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment;
      2) the income of nonresidents from the sources in the Republic of Kazakhstan, determined in accordance with Article 192 of this Code and which is not related to a permanent establishment of these nonresidents, except for those, specified in sub-paragraph 2-1) of this paragraph;
      2-1) the income, specified in sub-paragraph 9) of paragraph 1 of Article 192 of this Code, paid to an affiliate, a representative office or a permanent establishment of a nonresident;
      3) the remuneration, paid by a legal entity, which is a resident of the Republic of Kazakhstan, a nonresident legal entity, working in the Republic of Kazakhstan thorough a permanent establishment, to a legal entity, which is a resident of the Republic of Kazakhstan, a nonresident legal entity, operating in the Republic of Kazakhstan thorough a permanent establishment.
      2. The following shall not be taxable at the source of payment:
      1) the remuneration for the government-issued securities and agency bonds;
      2) the investment income which is paid to accumulative pension funds for the placed pension assets, to mutual funds and joint stock mutual funds and the State Social Insurance Fund for the placed assets by the insurance companies, working in the life insurance industry;
      3) the remuneration for the debt securities, which are on the official list at the Stock Exchange, working in the Republic of Kazakhstan, on the date of assignment of this remuneration;
      4) the remuneration for credits (loans), paid to the organizations, which perform bank lending operations under the license;
      5) the remuneration for credits (loans), paid to credit partnerships;
      6) the remuneration for credit (loans), paid to the special financial companies, created in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization for the securitization transactions;
      7) the remuneration on a credit (a loan), deposit which is paid to a resident bank;
      8) the remuneration for a financial leasing which is paid to a resident-lessor;
      9) the remuneration for repo operations;
      Note of the RCLI!
      Sub-paragraph 10) is in the wording of the Law of the Republic of Kazakhstan dated 26.11.2012 No. 57-V (shall be enforced from 01.01.2013)
      10) the remuneration for micro-credits, paid to micro-credit organizations;
      11) the remuneration for debt securities which is paid:
      to the organizations, performing professional activities in the securities market;
      to the legal entities through organizations, performing professional activities in the securities market;
      12) the remuneration for deposits, which is paid to the non-commercial organizations, except for those, registered in the form of joint-stock companies, establishments and consumer cooperatives, except for cooperatives of premises (an apartment) owners (condominiums).
      Note of the RCLI!
      Paragraph shall be enforced from 01.07.2011 and operate until 01.01.2018.
      The remuneration for a credit (a loan), which is paid to the organization, improving the quality of credit portfolios of the second tier banks and hundred percent of voting shares of which belong to the National Bank of the Republic of Kazakhstan, shall not be taxable at the source of payment.
      Note of the RCLI!
      Paragraph shall be enforced from 01.01.2012 and operate until 01.01.2018.
      The remuneration for a credit (a loan), which is paid to an affiliate of a bank, purchasing doubtful and bad assets of the parental bank, shall not be taxable at the source of payment.
      Footnote. Article 143 as amended by the Laws of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 12.01.2012 No. 539-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication). 

Article 144. The order of calculation of the corporate income tax withheld at the source of payment

      1. The amount of the corporate income tax, withheld at the source of payment, shall be determined by a tax agent by applying the rate, established by paragraph 3 of Article 147 of this Code, to the amount of the payable income which is taxable at the source of payment.
      2. A tax agent shall be obliged to withhold the tax, withheld at the source of payment when paying the income, established in Article 143, except for the income, provided by sub-paragraph 2) of paragraph 1 of Article 143 of this Code, regardless of the form and the place of the income payment.
      3. A legal entity shall have the right upon its decision to recognize as a tax agent for the corporate income tax, withheld at the source of payment, its structural unit for the income taxable at the source of payment which are paid (payable) by this structural unit.
      The decision of a legal entity or cancellation of this decision shall come into force January 1 of the year following the year of the decision-making.
      The provisions of this paragraph shall not be applied to the corporate income tax, withheld at the source of payment from the income, which is paid (payable) to a nonresident legal entity working in the Republic of Kazakhstan without forming a permanent establishment.
      Footnote. Article 144 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.012009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 144-1. The order of income taxation of the nonresident legal entities, working without forming a permanent establishment in the Republic of Kazakhstan

      Calculation, withholding and transfer of the corporate income tax from the income of the nonresident legal entities, working without forming a permanent establishment in the Republic of Kazakhstan, established by sub-paragraph 2) of paragraph 1 of Article 143 of this Code, and submission of the tax reporting shall be performed in the order, specified by Article 23 of this Code.
      Footnote. The Code is supplemented with Article 144-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 145. The order of transfer of the corporate income tax withheld at the source of payment

      1. Tax agents shall be obliged to transfer the amounts of the corporate income tax, withheld at the source of payment no later than twenty five calendar days after the end of the month when the payment was made, unless otherwise provided by this Code.
      2. Transfer of the amounts of the corporate income tax, withheld at the source of payment, shall be performed at the location of a tax agent.
      A nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, shall transfer the amounts of the corporate income tax, withheld at the source of payment to the budget at the location of a permanent establishment. 

Article 146. Calculation of the corporate income tax withheld at the source of payment

      Tax agents shall be obliged to submit calculation of the amounts of the corporate income tax, withheld at the source of income no later than the 15th of the second month, following the quarter when the payment was made.

Chapter 16. TAX RATES, TAX PERIOD AND TAX DECLARATION

Article 147. Tax rates

      1. Taxable income of a taxpayer, reduced by the amount of income and expenses, provided by Article 133 of this Code and by the amount of the expenses, incurred in the order, established by Article 137 of this Code, shall be subjected to taxation at the rate of 20 percent, unless otherwise provided by paragraph 2 of this Article.
      2. Taxable income of legal entities-producers of agricultural products, reduced by the amount of the income and expenses, provided by Article 133 of this Code and by the amount of expenses, incurred in the order, established by Article 137 of this Code, shall be subjected to the taxation at the rate of 10 percent in case if the income was received from the agricultural production, production of beekeeping products, as well as the processing and realization of their own production.
      3. The income taxable at the source of payment, except for the income of nonresidents from the sources in the Republic of Kazakhstan, shall be subjected to taxation at the rate of 15 percent.
      4. The income of the nonresidents from the sources in the Republic of Kazakhstan, which is determined by sub-paragraphs 1) - 8), 10) - 29) of paragraph 1 of Article 192 of this Code, which is not related to a permanent establishment of these nonresidents and the income, specified in sub-paragraph 9) of paragraph 1 of Article 192 of this Code, shall be subjected to taxation at the rates, defined by Article 194 of this Code.
      5. In addition to the corporate income tax, the net income of the nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, shall be subjected to taxation at the rate of 15 percent in the order, established by Article 199 of this Code.
      Footnote. Article 147 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011).

Article 148. Tax period

      1. Tax period for the corporate tax income is a calendar year from January 1 to December 31.
      2. If an organization was created after the beginning of a calendar year, the first tax period for it shall be the period of time from the date of its creation to the end of the calendar year.
      At that, the date of creation of an organization is the date of its state registration in a judicial body.
      3. If an organization was liquidated, reorganized before the end of a calendar year, the last tax period for it shall be the period from the beginning of the year to the completion of the reorganization, liquidation.
      4. If an organization, created after the beginning of a calendar year is liquidated, reorganized before the end of the same year, the tax period for it shall be the period from the date of creation to the date of completion of the reorganization, liquidation.

Article 149. Tax declaration

      1. A taxpayer of the corporate income tax shall submit the declaration for the corporate income tax to a tax body at the location no later than March 31 of the year, following the reporting tax period, except for the nonresident, who receives, from the sources in the Republic of Kazakhstan, the income subjected to taxation at the source of payment and who works in the Republic of Kazakhstan through a permanent establishment, unless otherwise provided by this Article.
      2. Excluded by the Law of the Republic of Kazakhstan of 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      3. The declaration for the corporate income tax shall include the declaration and additions to it on disclosure of information on taxation objects and (or) the objects, related to taxation.
      4. A taxpayer, applying the special tax regime for subjects of small business on the basis of the simplified declaration, shall not submit the declaration for the corporate income tax, taxable in accordance with Article 427 of this Code.
      Footnote. Article 149 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

SECTION 5. TAXATION OF ORGANIZATION, WORKING IN THE TERRITORY OF THE SPECIAL ECONOMIC ZONES

Chapter 17. TAXATION OF ORGANIZATIONS, WORKING IN THE TERRITORY OF THE SPECIAL ECONOMIC ZONES

Article 150. General provisions

      1. For the purposes of appliance of this Article, an organization working in the territory of a special economic zone is a legal entity, which simultaneously corresponds with the following conditions:
      1) it shall be registered as a taxpayer at the location in a tax body in the territory of a special economic zone;
      2) it shall not have structural units outside the territory of a special economic zone;
      3) no less than 90 percent of the total annual income are the income receivable (received) from realization of goods of own production, works, services from thes of activities, provided by this part, except for thes of activities, provided by Article 151-4 of this Code, where the income receivable (received) from realization of goods of own production, works, services of theses of activities consists of 70 percent of the total annual income.
      The enumeration of the goods, works, services specified in sub-paragraph 3) of the first part of this paragraph shall be determined by the Government of the Republic of Kazakhstan.
      2. For the taxation purposes, the organizations, working in the territory of a special economic zone "Park of Innovative Technologies", are also the legal entities which simultaneously correspond with the following conditions:
      1) they shall be registered as taxpayers at the location in a tax body;
      2) they shall not have structural units;
      3) no less than 70 percent of the total annual income are the income receivable (received) from realization of goods of own production, works, services from thes of activities, provided by paragraph 2 of Article 151-4 of this Code.
      The enumeration of the goods, works, services specified in sub-paragraph 3) of the first part of this paragraph shall be determined by the Government of the Republic of Kazakhstan.
      The enumeration of the legal entities specified in this paragraph shall be determined together with the central authorized body on execution of the budget and the central executive body on the state regulation in the sphere of creation, functioning and abolition of the special economic zones.
      The order of formation of this enumeration shall be approved by the Government of the Republic of Kazakhstan.
      3. Organizations, working in the territory of the special economic zones shall not include:
      1) The subsoil users;
      2) the organizations, producing excisable goods, except for the organizations which perform production, assembly (packaging) of the excisable goods, provided by sub-paragraphs 6) of Article 279 of this Code;
      3) the organizations, applying the special tax regimes;
      4) the organizations which applied investment tax preferences;
      5) the organizations working in the gambling business.
       4. Attribution of the received (receivable) income to the income from thes of activities, specified in sub-paragraph 3) of the first part of paragraph 1 of this Article, shall be performed on the basis of the confirmation of a local executive body of a region, city of national importance, the capital, given in the order and in the form, established by the Government of the Republic of Kazakhstan.
      5. Calculation of taxes and land use payment, and refund of an excess of the value-added tax on the turnover which are taxable at the zero rate shall be performed in the order, established by this Code, taking into account the specifics, provided by this part and Articles 244-2 and 244-3 of this Code.
      Footnote. Article 150 is in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012); as amended by the Law of the Republic of Kazakhstan dated 17.02.2012 No. 564-IV (shall be enforced from 01.01.2012). 

Article 151. Calculation, order and deadlines for tax payment

      Footnote. Article 151 is excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 151-1. Taxation of organizations, working in the territory of the special economic zone "Astana - new city"

      1. In the purpose of application of the sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities, corresponding with creation of the special economic zone "Astana - New City" are:
      the production of chemical industry products;
      the production of rubber and plastic products;
      the production of other nonmetallic mineral products;
      the production of domestic electrical devices;
      the production of machinery and equipment;
      metallurgical industry;
      the production of electrical equipment, including electric lighting equipment;
      the production of glass components for lighting devices;
      food production;
      the production of wood pulp and cellulose, paper and paperboard;
      the furniture production;
      the production of motor vehicles, trailers and semi-trailers;
      the production of railway locomotives and rolling stock;
      the production of aircrafts and space crafts;
      the production of basic pharmaceutical products and preparations;
      the production of electronic parts;
      building and commissioning of infrastructure facilities, hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, libraries, students’ palaces, sports centers, administrative and residential complexes in accordance with the design and estimate documentation.
      2. In calculation of taxes and land use payment by organizations working in the territory of the special economic zone "Astana - New City":
      1) the amount of the corporate income tax, calculated in the accordance with Article 139 of this Code, shall decrease by 100 percent in determination of the amount of the corporate income tax, payable to the budget.
      The provisions of this paragraph shall not be applied to the organizations constructing and commissioning the hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, students’ palaces, sports centers in accordance with the design and estimate documentation;
      2) The following shall be applied to the taxation objects and (or) the objects related to taxation, located in the territory of a special economic zone and which are used when performing thes of activities, provided by paragraph 1 of this Article:
      the 0 coefficient shall be applied to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of a land use payment for the period, specified in a contract of temporary repayable land use (leasing) but no more than ten years from the date of provision of the land under the right of temporary repayable land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in calculation of the property tax.
      Footnote. The Code is supplemented with Article 151-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012). 

Article 151-2. Taxation of organizations working in the territory of the economic zone "National Industrial Petrochemical Technology Park "

      1. For the purposes of application of sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities corresponding with creation of the special economic zone "National Industrial Petrochemical Technology Park " are:
      the production of chemical industry products;
      the production of petrochemical products and products of the accompanying, and the related productions and technologies.
      2. In calculation of taxes and land use payment by the organizations working in the territory of the special economic zone "National Industrial Petrochemical Technology Park ":
      1) the amount of the corporate income tax, calculated in accordance with Article 139 of this Code, shall go down by 100 percent in determination of the amount of the corporate income tax which is payable to the budget;
      2) the following shall be applied to the taxation objects and (or) the objects, related to taxation, which are placed in the territory of the special economic zone and which are used when performing thes of activities, provided by paragraph 1 of this Article:
      the 0 coefficient shall be applied to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of land use payment for the period, specified in a contract of temporary repayable land use (leasing) but no more than ten years from the date of provision of the land under the right of temporary repayable land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in calculation of the property tax.
      Footnote. The Code is supplemented with Article 151-2 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 151-3. Taxation of organizations, working in the territory of the special economic zone "Aktau Sea Port"

      1. For the purposes of application of sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities, corresponding with the special economic zone "Aktau Sea Port" are:
      the production of domestic electrical devices;
      the production of leather goods;
      the production of chemical industry products;
      the production of rubber and plastic products;
      the production of other nonmetallic mineral products;
      metallurgical industry;
      the production of fabricated metal products;
      the production of machinery and equipment;
      the production of petrochemical and the products of the accompanying, and the related productions and technologies;
      warehousing and support activities for transportation.
      2. In calculation of taxes and land use payment by organizations working in the territory of the special economic zone "Aktau Sea Port":
      1) the amount of the corporate income tax, calculated in accordance with Article 139 of this Code, shall decrease by 100 percent in determination of the amount of the corporate income tax which is payable to the budget;
      2) the following shall be applied to the taxation objects and (or) the objects related to taxation, which are located in the territory of the special economic zone and which are used when performing thes of activities, provided by paragraph 1 of this Article:
      the 0 coefficient shall be applied to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of land use payment for the period, specified in a contract of temporary repayable land use (leasing) but no more than ten years from the date of provision of the land under the right of temporary repayable land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in calculation of the property tax.
      Footnote. The Code is supplemented with Article 151-3 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012)

Article 151-4. Taxation of organizations operating on the territory of the special economic zone "Park of Innovative Technologies"

      1. For the purposes of implementing the sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities, corresponding with creation of the special economic zone "Park of Innovative Technologies" are:
      design, development, implementation, pilot production and production of software, databases, and hardware;
      creation of new information technologies, based on artificial immune and neural systems;
      research and development works for creation and implementation of projects in the information technologies’ area;
      production of machines for word processing, copying and reproduction equipment, addressing machines, calculators, cash registers, marketing machines, ticket and cash machines, production of other office machinery and equipment, electronic computing machines and other information processing equipment;
      production of electrical and radio elements, transmission equipment, equipment for receiving, recording and playback of audio and video;
      production of domestic electrical devices;
      educational activities in the field of information and innovative technologies.
      2. For the purposes of application of sub-paragraph 3) of the first part of paragraph 2 of Article 150 of this Code, thes of activities corresponding with creation of the special economic zone "Park of Innovative Technologies" are:
      design, development, implementation, pilot production and production of software, databases, and hardware of information technologies, and the services of data centers, on-line services;
      conduction of research and development works on the creation and implementation of projects in the information technologies’ area.
      3. In calculation of taxes and land use payment by organizations operating on the territory of the special economic zone "Park of Innovative Technologies":
      1) when determining the amount of the corporate income tax which is payable to the budget, the amount of the corporate income, calculated in accordance with Article 139 of this Code tax, shall decrease by 100 percent;
      2) the following shall be applied to the taxation objects and (or) the objects related to taxation, which are located in the territory of the special economic zone and which are used in performing thes of activities, specified by paragraph 1 of this Article:
      the 0 coefficient shall be applied to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of land use payment for the period, specified in a temporary paid land use agreement (leasing) but no more than ten years from the date of provision of the land plots based on the right of temporary paid land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in calculation of the property tax;
      3) when determining the amount of the social tax, payable to the budget, the amount of the social tax, calculated in accordance with Article 359 of this Code shall decrease by 100 percent under simultaneous compliance of the following conditions:
      the maximal period of benefits - 5 years from the date of registration as an organization, operating on the territory of the special economic zone;
      the expenses for salaries of employees for a tax period for the corporate income tax shall make no less than 50 percent of the total annual income;
      90 percent of expenses for salaries for a tax period for the corporate income tax shall form the expenses for the salaries of employees - residents of the Republic of Kazakhstan.
      Footnote. The Code is supplemented with Article 151-4 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012); as amended by the Law of the Republic of Kazakhstan dated 17.02.2012 No. 564-IV (shall be enforced from 01.01.2012).

Article 151-5. Taxation of organizations, operating on the territory of the special economic zone "Ontustik"

      1. For the purpose of application of sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities, corresponding with creation of the special economic zone "Ontustik" are:
      production of made-up textile goods, except for clothing;
      production of knitted garments;
      production of clothing of textile materials;
      production of silk fabrics and goods based on them;
      production of nonwoven textile materials and goods thereof;
      production of carpets, rugs and tapestries;
      production of cotton cellulose and its derivatives;
      production of high-quality paper made ??of cotton material;
      production of leather goods.
      2. In calculation of taxes and land use payment by organizations working in the territory of the special economic income "Ontustik":
      1) when determining the corporate income tax, payable to the budget, the amount of the corporate income tax, calculated in accordance with Article 139 of this Code, shall decrease by 100 percent;
      2) the following coefficients are applied to the taxation objects and (or) the objects, related to taxation, which are placed in the territory of the special economic zone and used in thes of activities, provided by paragraph 1 of this Article:
      the 0 coefficient - to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of land use payment for the period, specified in a temporary paid land use agreement(leasing) but no more than ten years from the date of provision of the land plots based on the right of temporary paid land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in calculation of the property tax;
      Footnote. The Code is supplemented with Article 151-5 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 151-6. Taxation of organization, operating on the territory of the special economic zone "Burabai"

      1. For the purposes of application of sub-paragraph 3) of the first part of paragraph 1 of Article 150 of this Code, thes of activities corresponding with creation of the special economic zone "Burabai" are:
      construction and commissioning of hotels, holiday homes, sanatoriums in accordance with the design and estimate documentation which are not connected with gambling business;
      provision of tourism services.
      2. In calculation of taxes and land use payment by organization working in the territory of the special economic zone "Burabai":
      1) when determination of the amount of the corporate income tax, payable to the budget, the amount of the corporate income tax, calculated in accordance with Article 139 of this Code, shall reduce by 100 percent;
      2) the following coefficients shall be applied to the taxation objects and (or) the objects related to taxation, which are located in the territory of the special economic zone and used for performing thes of activities, provided by paragraph 1 of this Article:
      the 0 coefficient shall be applied to the appropriate rates in the land tax calculation;
      the 0 coefficient shall be applied to the appropriate rates in calculation of land use payment for the period, specified in a temporary paid land use agreement (leasing) but no more than ten years from the date of provision of the land plot based on the right of temporary repayable land use (leasing);
      the rate of 0 percent shall be applied to the average annual cost of the taxation objects in the property tax calculation;
      Footnote. The Code is supplemented with Article 151-6 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 152. Tax period and tax reporting

      Tax period, the order and deadlines for submission of a tax reporting on taxes and other obligatory payments to the budget shall be determined in accordance with this Code.

SECTION 6. THE INDIVIDUAL INCOME TAX

Chapter 18. BASIC PROVISIONS

Article 153. Payers

      1. Payers of the individual income tax are the individuals who have the taxation objects, specified in accordance with Article 155 of this Code.
      2. Payers of the gambling business tax, fixed tax shall not be the payers of the individual income tax on the income from thes of activities, specified in Articles 411, 420 of this Code.
      3. The individual entrepreneurs, which apply the special tax regime for a peasant or farm enterprises, shall not be payers of the individual income tax on the income from thes of activities, to which this special tax regime is applied.

Article 154. Specifics of taxation of income of a foreigner and a stateless person who is a resident of the Republic of Kazakhstan

      1. Calculation, withholding and transfer of the individual income tax at the source of payment from the income of a foreigner or a stateless person, who is a resident of the Republic of Kazakhstan (hereinafter - foreign resident person), and submission of the tax reporting shall be performed by a tax agent in the order, established by this Chapter and Chapter 19 of this Code, taking into account the tax deductions and rates, specified by Articles 158 and 166 of this Code.
      2. The income from the sources outside of the Republic of Kazakhstan which are receivable by a foreign resident person shall be subjected to taxation in the order, established by Article 178 and Chapter 27 of this Code.
      Footnote. Article 154 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 154-1. The order of taxation of income of nonresident individuals

      Calculation, withholding and transfer of the individual income tax from the income of the nonresident individuals and submission of the tax reporting, shall be performed in the order, established by Chapter 25 of this Code.
      Footnote. The Code is supplemented with Article 154-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 155. Taxation objects

      1. The objects of taxation by the individual income tax are the incomes of an individual in the form of:
      1) the income, taxable at the source of payment;
      2) the income, which is not taxable at the source of payment.
      2. Taxation objects shall be determined as the disparity between the taxes, which are subjected to taxation, taking into account the adjustments, provided by Article 156 of this Code and tax deductions in the cases, order and amount, provided by this part.
      3. The following shall not be considered as the income of an individual:
      1) the targeted social assistance, allowances and compensations paid from the budget in the amounts, established by the legislation of the Republic of Kazakhstan;
      2) a compensation for harm, caused to life and health of an individual in accordance with the legislation of the Republic of Kazakhstan;
      3) the compensations to employees in cases when their work is connected with traveling, related to business trips within the service area, - in the amount of 0,35 of the monthly calculation index established by the Law on the Republican Budget and which operates on the date of charging of such payments for each day of this work;
      4) the compensations for business trips, including those, for the purposes of education, advanced training or retraining of an employee in accordance with the legislation of the Republic of Kazakhstan, unless otherwise provided by this Article:
      established in sub-paragraphs 1), 2) and 4) of Article 101 of this Code;
      for business trips within the Republic of Kazakhstan - daily allowances are no more than 6-fold of the monthly calculation index, defined by the Law of the Republican Budget and which operates as of January 1 of the appropriate financial year for every day for the period no longer than forty days;
      for a business trip outside the Republic of Kazakhstan - daily allowances are no more than 8-fold of the monthly calculation index, defined by the Law of the Republican Budget and which operates on January 1 of the appropriate financial year for each day for no longer than forty days;
      5) compensations for business trips, including those for the purposes of education, advanced training or retraining of an employee in accordance with the legislation of the Republic of Kazakhstan, which are performed by the state institutions, except for the state institutions, financed from the budget (scheme of expenses) of the National Bank of the Republic of Kazakhstan in the amounts, set by the legislation of the Republic of Kazakhstan;
      6) compensations for business trips, including those for the purposes of education, advanced training or retraining of an employee in accordance with the legislation of the Republic of Kazakhstan, which are performed by state institutions, financed from the budget (scheme of expenses) of the National Bank of the Republic of Kazakhstan in the amounts and in the order, specified by the legislation of the Republic of Kazakhstan;
      7) compensations for expenses, which are documentarily confirmed for travel, property transportation, rent of accommodation for the period of no longer than thirty calendar days, in transfer of an employee to work in another area or in moving to another location together with an employer;
      8) the expenses of an employer, which are not related to the activity, aimed at receiving income and not deductible and which shall not be distributed to certain individuals;
      9) the field allowances of employees, engaged in geological exploration, topographic and geodetic, and survey works in the field, - in twofold of the monthly calculation index, established by the Law on the Republican Budget and which operates on January 1 of the appropriate financial year for each day of this work;
      10) the expenses of an employer for life support of persons, working under a rotation system, during their stay at the production facility with provision of conditions for execution of works and rest between the rotation shifts:
      for rent of housing;
      for meals within the daily allowances, specified in sub-paragraph 4) of this paragraph;
      11) the expenses which are connected with delivery of employees from the location of their residence (stay) in the Republic of Kazakhstan to the location of work and back;
      12) the cost of the given special clothing, shoes, other means of individual protection and first aid, soap, disinfectants, milk, or other equivalent food for therapeutic and preventive nutrition according to the standards, established by the legislation of the Republic of Kazakhstan;
      13) the insurance payments under the obligatory insurance contracts for employees from accidents when executing labor (service) duties, concluded by an employee in accordance with the legislation of the Republic of Kazakhstan, regulating the obligatory of insurance;
      14) the amount of compensation for material damages, awarded by a court decision;
      15) the amounts of dividends, remunerations, winnings previously taxed with the individual income tax at the source of payment if the documents, confirming withholding of the tax at the source of payment are presented;
      16) the amounts of contributors’ pension savings of the pension funds, which were sent to insurance companies on life insurance for payment of insurance remunerations for a concluded contract of accumulative insurance (annuity), and redemption amounts under the pension annuity contracts, sent to insurance companies pursuant to the order, specified by the legislation of the Republic of Kazakhstan;
      17) the amount of fines, charged for the delayed withholding (charge) and (or) transfer of obligatory pension contributions and social contributions in the amounts, established by the legislation of the Republic of Kazakhstan;
      18) the cost of property, received in the form of humanitarian aid;
      19) the increase of the cost in realizing motor vehicles and trailers, which are subjected to the state registration in the Republic of Kazakhstan and which are on the right of ownership for one year and more from the date of the ownership right’s registration;
      20) the increase of the cost in realizing housing, summer cottages, garages, objects of personal subsidiary farming, located in the Republic of Kazakhstan on the right of ownership for one year and more from the date of the ownership right’s registration;
      21) the increase of the cost in realizing land and (or) land shares, located in the Republic of Kazakhstan under the right of ownership for one year and more which are provided for individual housing construction, private farming, cottage construction, for garage on which there are facilities, specified in sub-paragraph 1) of paragraph 2 of Article 180 of this Code;
      22) the increase of the cost in realizing land and (or) land shares, located in the Republic of Kazakhstan and those, provided for individual housing construction, private farming, gardening, cottage construction, for garage, on which there are facilities, specified in sub-paragraph 1) of paragraph 2 of Article 180 of this Code in case if the period is one year or more between the dates of composition of the legal documents on purchase and on alienation of the land and (or) the land share;
      23) the increase of the cost of property, bought out for the state needs in accordance with the legislation of the Republic of Kazakhstan;
      24) reimbursement of expenses of an individual-lessor for maintenance and reparation of the leased property and expenses of a lessor for maintenance and reparation of the property which is leased from an individual;
      25) the excess of the market value of the underlying asset of an option in the moment of the option’s execution over the cost of the option’s execution. The cost of an option execution is the cost for which the underlying asset of an option was fixed in the appropriate document under which the option was provided to an individual;
      26) the cost of the property, gratuitously transferred to an individual in the form of advertisement within 2-fold of the monthly calculation index, established by the Law of the Republican Budget and which operates on the date of this property’s transfer;
      27) representation costs for the reception and service of persons, incurred in accordance with Article 102 of this Code;
      28) pecuniary gain from savings on the remuneration for use of credits (loans, micro-credits), received from legal entities and individual entrepreneurs, including those, received from an employer by its employee.
      Footnote. Article 155 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (the order of enforcement see Article 2); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 156. Income which is not subjected to taxation

      1. The followings of taxes shall be excluded from the income of an individual, subjected to taxation:
      1) alimonies received for children and dependents;
      2) remunerations paid to individuals for their deposits in banks and organizations, performing banking operations on the basis of the license;
      3) remunerations for debt securities;
      4) remunerations for state issue-grade securities, agency bonds;
      4-1) the income from increase of the cost when undertaking the realization of the state issue-grade securities;
      4-2) the income from increase of the cost when undertaking the realization of the agency bonds;
      5) the dividends and remunerations for the securities which are on the official list of the Stock Exchange, operating in the Republic of Kazakhstan, on the date of distribution of these dividends and remunerations;
      6) the income for shares of mutual investment funds when buying them out by the governing company of this fund;
      7) the dividends under the simultaneous fulfillment of the following conditions:
      a taxpayer shall possess the shares and participation shares, for which the dividends are paid, for more than three years on the date of distribution of the dividends;
      a legal entity which pays the dividends shall not be a subsoil user in the period, for which the dividends are paid;
      more than 50 percent of the cost of a legal entity’s assets, which pays the dividends, on the date of payment of the dividends are the property of a person (persons), who is (are) not a subsoil user (users).
      The provisions of this paragraph shall be applied to the dividends, received from a resident legal entity in the form:
      of income, payable for shares, including the shares which are the basic assets of the depository receipts;
      of a part of the net income which is distributed by a legal entity among its founders, participants;
      of income from distribution of property during liquidation of a legal entity or during reduction of the authorized capital by the proportional reduction of the size of contributions of the founders, participants or by full or partial repayment of shares of the founders, participants, and when a founder, participant withdraws a share of participation in the legal entity, except for the property, transferred by the founder, participant in the authorized capital in the form of contribution.
      At that, the share of property of the persons (person) who are (is) subsoil users (a subsurface user) in the value of assets of a legal entity which pays dividends, shall be determined in accordance with Article 197 of this Code;
      8) alls of payments to military servicemen when performing duty of military service, to employees of special state bodies, to employees of law enforcement agencies, to whom, in the established order, the special rank was given, which are received by them in connection with the official duties;
      8-1) excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012);
      8-2) alls of payments, receivable in connection with performance of the official duties in other troops and military units, law enforcement agencies (except for customs bodies) by the persons whose rights to have military, special ranks, ranks and to wear uniforms were abolished from January 1, 2012;
      9) winnings on a lottery within 50 percent of the minimum wage rate, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates on the date of distribution of these winnings;
      10) the payments in connection with the execution of public works and professional education, performed at the expense of the budget and (or) grants in the minimum wage rate, established for the appropriate financial year by the Law of the Republic of Kazakhstan on the Republican Budget and which operates on the date of this payment;
      Note of the RCLI!
      This wording of sub-paragraph 11) shall operate from 01.01.2009 to 01.01.2016 (see Article 2 of the Law of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV).
      11) the payments from a grant (except for the payments in the form of salaries), unless otherwise provided by sub-paragraph 11-1) of this paragraph;
      Note of the RCLI!
      Sub-paragraph 11-1) shall be enforced from 01.01.2009 and operate until 01.01.2016 (see Article 2 of the Law of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV).
      11-1) the payments which are made from a grant under an international agreement, which the Republic of Kazakhstan is a party to, aimed to support (assist) the low-income citizens in the Republic of Kazakhstan;
      12) the payments in accordance with the legislation of the Republic of Kazakhstan on social security of the citizens, who suffered from an ecological disaster or nuclear tests at a nuclear test site;
      13) the income for a year within 55-fold of the minimum wage rate, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates at of the beginning of the appropriate financial year of the following persons:
      The World War II veterans and equivalent persons;
      the persons, awarded with the orders and medals of the former Soviet Union for hard work and impeccable military service in the rear during the World War II;
      the persons, who worked (served) for no less than 6 months from June 22, 1941 to May 9, 1945 and who are not awarded with the orders and medals of the former Soviet Union for hard work and impeccable military service in the rear during the World War II;
      the disabled persons of I, II, III groups;
      a disabled child;
      one of the parents of a person, who falls under the category of "a disabled child" - until such person reaches eighteen years of age;
      one of the parents of a person, recognized as the disabled because of the "disability since childhood," - during the life of such person;
      14) excluded by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010);
      15) the income from increase of the cost when undertaking the realization of the assets, shares of participation in a legal entity or a consortium. This sub-paragraph shall be applied under the simultaneous fulfillment of the following conditions:
      a taxpayer shall possess these assets and participation shares for more than three years on the date of realization of the assets and the participation shares;
      a legal entity - issuer or a legal entity, a share of participation in which is realized, or a participant of a consortium who realizes the share of participation in this consortium shall not be a subsoil user;
      more than 50 percent of the cost of assets of a legal entity - issuer or a legal entity, a participation share in which is realized, or the total cost of assets of a consortium participants, a share of participation in which is realized, on the date of this realization are the property of the persons (person), who are not the subsoil users (a subsoil user);
      16) the income from increase of the cost when undertaking via the method of open tendering at the Stock Exchange, which operates in the Republic of Kazakhstan, the realization of the securities which are on the official list of this Stock Exchange on the date of the realization;
      17) simultaneous payments from the budget (except for the payments in the form of salaries);
      18) the payments for covering of medical services (except for cosmetology), for childbirth, for burial within 8-fold of the minimal amount of the salary, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates as of January 1 of the appropriate financial year for each of payments during a calendar year.
      The specified income shall be exempted from taxation when possessing the documents, confirming receipt of medical services (except for cosmetology) and actual expenses for their payment, a child's birth certificate, a death certificate;
      19) the official income of diplomatic or consular officials who are not citizens of the Republic of Kazakhstan;
      20) the official income of foreigners who are in the public service of a foreign state where their income is subjected to taxation;
      21) the official income in a foreign currency of the individuals who are the citizens of the Republic of Kazakhstan and who serve in diplomatic and equivalent representative offices of the Republic of Kazakhstan abroad, which are paid from the budget;
      22) the pension payments from the State Center for Pension Payments;
      23) remuneration for contributions to housing building savings (remuneration of the state), paid from the budget in the amounts, established by the legislation of the Republic of Kazakhstan;
      24) expenses of an employer for sending an employee to education, advanced training or retraining in accordance with the legislation of the Republic of Kazakhstan in conformity with the specialization, related to the production activities of the employer:
      when registering a business trip to another area - the actually incurred expenses of the employer for education, advanced training or retraining of the employee;
      without registering a business trip to another area:
      the actually incurred expenses for education, advanced training or retraining of the employee;
      the actually incurred expenses of the employee for accommodation within the standards, established by the Government of the Republic of Kazakhstan;
      the actually incurred expenses for the journey to a place of education, in case of the enrollment, and back, after completion of the education, advance training or retraining of the employee;
      the amount of money, allocated by the employer to the employee within:
      6-fold of the monthly calculation index, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates on January 1 of the appropriate financial year, per day - during the period of study, advance training or retraining of the employee within the Republic of Kazakhstan;
      8-fold of the monthly calculation index, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates on January 1 of the appropriate financial year, per day - during the period of study, advanced training or retraining of the employee outside the Republic of Kazakhstan;
      24-1) excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009);
      25) the expenses aimed at education, incurred in accordance with sub-paragraph 3) of paragraph 1 of Article 133 of this Code;
      26) the social payments from the State Social Insurance Fund;
      27) the scholarships, paid to the students in educational institutions in the amounts, established by the legislation of the Republic of Kazakhstan for the state scholarships;
      28) the cost of property, received by an individual in the form of a gift or inheritance from another individual. The provisions of this sub-paragraph shall not be applied to the property, received by an individual entrepreneur to perform his/her activity and to the pension savings, inherited in the order, established by the legislation of the Republic of Kazakhstan which are paid by accumulative pension funds;
      29) the cost of property, received in the form of charity and sponsorship;
      30) the cost of route vouchers to summer camps for children under sixteen;
      31) insurance payments connected with an insurance case which occurred in the period of a contract’s operation, payable in any of insurance, except for the income, specified by Article 175 of this Code;
      32) insurance remunerations which are paid by the employer under the contracts on obligatory and (or) accumulative insurance of its employees;
      33) insurance remunerations performed in case of death of an insured person under the contracts of accumulative insurance;
      34) the voluntary professional pension contributions to the accumulative pension funds in the amount, established by the legislation of the Republic of Kazakhstan;
      35) excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009);
      36) the net income from an trust management of a founder of the trust management under a contract on trust management or beneficiary in other cases of the trust management which is received from a nonresident legal entity who is the trust manager;
      37) material gain from savings on remunerations which is received in provision of a bank loan to a holder of a payment card during the interest-free period, established in a contract, concluded between the bank and the client;
      38) the amount, credited by a bank-issuer at the expense of the bank-issuer to the account of a holder of a payment card in performing his/her cashless payments using the payment card;
      39) the dividends, received from the nonresident legal entity, specified in paragraph 1 of Article 224 of this Code, which are distributed from the income or a part of it, subjected to the individual income tax in the Republic of Kazakhstan in accordance with Article 224 of this Code;
      40) the income from an investment deposit, which is placed in an Islamic bank;
      41) material gain in the form of the following expenses actually incurred by the autonomous education institution, specified in paragraph 1 of Article 135-1 of this Code in respect of a foreign resident who is an employee of this organization or who works in the Republic of Kazakhstan and performs services of the organization for:
      accommodation fees;
      medical insurance;
      air travel fees from the place of residence outside the Republic of Kazakhstan to the place of work in the Republic of Kazakhstan and back.
      2. Exemption from the income taxation, defined by sub-paragraphs 12) and 13) of paragraph 1 of this Article shall be provided for the tax periods, for which there are the grounds for application of this exemption;
      In case of presenting of the confirming documents, in which the date from which the ground for applications of adjustments occurs before the date of the income payment, a taxpayer (a tax agent) shall have the right to apply the adjustments, specified by sub-paragraphs 12) and 13) of paragraph 1 of this Article to the income for the tax period, for which there is the ground for application of these adjustments;
      3. The income, provided by sub-paragraphs 12) and 130 of paragraph 1 of this Article, shall be excluded from the income which is subjected to taxation on the basis of:
      the application of an individual to apply adjustments to the taxable income with the amount of such adjustments within the limits, set by this Article;
      a copy of the confirming documents.
      Footnote. Article 156 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 19.03.2010 No. 258-IV (shall be enforced from 01.01.2009 and operate until 01.01.2016); dated 06.01.2011 No. 379-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9); dated 13.02.2012 No. 553-IV (shall be enforced upon expiry of ten calendar days after the date of its first official publication); dated 15.02.2012 No. 556-IV (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 157. Nontaxable amount of the total annual income

      For the purposes of the state registration of the individual entrepreneurs in accordance with the legislation of the Republic of Kazakhstan, the amount of income, nontaxable with the individual income tax, subjected to taxation for a calendar year for an individual shall make 12-fold minimum wage rate, established by the Law on the Republican Budget and which operates on January 1 of the appropriate financial year.
      Footnote. Article 157 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).

Article 158. Tax rates

      1. The income of a taxpayer, except for the income, specified in paragraph 2 of this Article, shall be taxable at the rate of 10 percent.
      2. Income in the form of dividends, received from sources in the Republic of Kazakhstan and outside of it, shall be taxable at the rate of 5 percent.

Article 159. Tax period

      1. Tax period for calculation of the individual income tax by the tax agents from the income, taxable at the source of payment, is a calendar month.
      2. Tax period for calculation of the individual income tax from the income, which is not taxable at the source of payment, shall be determined in accordance with Article 148 of this Code.

Chapter 19. THE INCOME TAXABLE AT THE SOURCE OF PAYMENT

Article 160. The income, which is taxable at the source of payment

      Income which is taxable at the source of payment shall include the followings of income:
      1) The income of an employee;
      2) the income of an individual from a tax agent;
      3) the pension payments from the accumulative pension funds;
      4) the income in the form of dividends, remunerations, winnings;
      5) the scholarships;
      6) the income from saving insurance contracts.

Article 161. Calculation, withholding and payment of the tax

      1. Calculation of the individual income tax shall be performed by a tax agent on the income which is taxable at the source of payment in the taxable income calculating.
      2. Withholding of the individual income tax shall be performed by a tax agent no later than the date of the income payment, taxable at the source of payment, unless otherwise provided by this Code.
      3. A tax agent shall perform transfer of the individual income tax for the paid income no later than twenty five calendar days after the end of the month, in which the income payment was made, at its location, unless otherwise provided by this paragraph.
      Transfer of the individual income tax shall be made to the appropriate budgets at the location of structural units for the income of an employee of the structural units of the tax agent.
      A legal entity shall have the right by its decision to recognize its legal unit for the income, taxable at the source of payment and which is paid (payable) by this structural unit, as a tax agent for the individual income tax, withheld at the source of payment.
      At that, the decision of the legal entity or cancellation of this decision shall come into force at the beginning of the quarter, following the quarter, in which this decision was made.
      In case if a newly formed structural unit is recognized as a tax agent, the decision of a legal entity on the recognition shall be enforced from the date of creation of this structural unit or at the beginning of the quarter following the quarter, in which this structural unit was created.
      For the purposes of part 12 of this Code, the structural units, recognized by the decision of a resident legal entity as a tax agent, shall be recognized as the independent payers of the social tax.
      4. Calculation and withholding of the tax from income from depositary receipts shall be performed by an issuer of the underlying asset of these depository receipts.
      5. Deadlines for payment of the individual income tax by the tax agents, which apply the special tax regimes for subjects of small business on the basis of the simplified declaration and peasant or farmer enterprises, are established by Article 438 and 446 of this Code.
      Footnote. Article 161 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 161-1. Specifics of calculation, withholding and payment of the tax by government institutions

      1. The structural units of a government body and (or) the territorial bodies may be considered as the tax agents on income of employees of the subordinate government institutions by the decision of the government body.
      The structural units of a government body and (or) territorial (subordinate) bodies may be considered as the tax agents on income of employees of the subordinate institutions by the decision of the local executive body.
      At that, for the purposes of part 12 of this Code, the government institutions, recognized in the order, established by this Article as the tax agents, shall be recognized as the payers of the social income tax.
      The tax payment shall be performed to the appropriate budgets at the location of a tax agent.
      2. Calculation, withholding and payment of the individual income tax shall be performed by a tax agent in the order and within the deadlines, established by Articles 161, 163 - 167 of this Code.
      3. The declaration for the individual income tax and the social tax shall be submitted by a tax agent in the order and within the deadlines, specified by Article 162 of this Code.
      Footnote. The Code is supplemented with Article 161-1 in accordance with the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010).

Article 162. The declaration for the individual income tax and the social tax

      1. The declaration for the individual income tax and the social tax for the citizens of the Republic of Kazakhstan shall be submitted to the tax bodies at the location of the tax payment no later than the 15th of the second month, following the accounting quarter.
      1-1. The declaration for the individual tax and the social tax for foreigners and stateless persons shall be submitted by a tax agent to the tax bodies at the location of the tax payment quarterly no later than the 15th of the second month, following the quarter, which includes the reporting tax periods.
      2. The tax agents, applying the special tax regimes for farm and peasant enterprises and for subjects of small business on the basis of the simplified declaration, shall not submit the declaration for the individual income tax and the social tax for the activity, to which these regimes are applied.
      2-1. The tax agents, who have structural units, shall submit the attachment on calculation of the amount of the individual income tax and the social tax on a structural unit to the declaration for the individual income tax and the social tax to a tax body at the location of the structural unit.
      Footnote. Article 162 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

§ 1. Income of an employee

Article 163. The income of an employee

      1. An employee’s Income which is taxable at the source of payment shall be determined as the disparity between the employee’s income, distributed by an employer, which is taxable, taking into account the rates, specified by Article 156 of this Code and the amount of the tax deductions, defined by Article 166 of this Code.
      2. Unless otherwise provided by this Article, the taxable income of an employee is any income, received by the employee from an employer in monetary or natural form, including the income, received in the form of material gain, and the income on the civil contracts, concluded in accordance with the legislation of the Republic of Kazakhstan between the employer and the third persons from which the employee receives the income, specified in Articles 164, 165 of this Code.
      3. Taxable income of an employee is not:
      1) the pension allowances from the accumulative pension funds;
      2) the income in the form of dividends, remunerations, winnings;
      3) the income on accumulative insurance contracts;
      4) the income which is not taxable at the source of payment, determined by Article 177 of this Code;
      5) the payments to employees for purchase of their personal property;
      6) excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).
      Footnote. Article 163 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 164. Income of an employee in a natural form

      1. Taxable income of an employee, received in a natural form shall include:
      1) salaries in a natural form;
      2) the cost of the property, gratuitously received from an employer. The cost of gratuitously executed works, provided services shall be determined in the amount of the expenses, incurred in connection with fulfillment of works, provision of services;
      3) the cost of goods, executed works, provided services, paid by an employer and received by an employee thorough the third persons.
      2. The taxable income of an employee, received in a natural form is the cost of the goods, executed works, provided services, specified in paragraph 1 of this Article including the appropriate amount of the value-added tax and excise.

Article 165. An employee’s income in the form of a material gain

      Taxable income of an employee, received in the form of material gain shall also include:
      1) negative disparity between the cost of goods, works, services, realized to an employee and the cost of purchase or the net cost of these goods, works, services;
      2) the writing-off of the debt or an obligation of the employee by the decision of an employer;
      3) the expenses of an employer for payment of insurance bonuses on the contracts on insurance of its employees;
      4) the expenses of an employer for reimbursement of expenses of an employee which are not connected with the employer’s activity. 

Article 166. Tax deductions

      1. In determination of the employee’s income, taxable at the source of payment, the following tax deductions shall be performed for each month during a calendar year regardless of periodicity of the payments:
      1) the amount of the minimum wage rate, established by the Law on the Republican Budget and which operates on the date of the tax calculation in the appropriate month, for which the tax is calculated. The total amount of a tax deduction for a year shall not exceed the amount of the minimum wage rate, established by the Law of the Republic of Kazakhstan on the Republican Budget and which operates at the beginning of each month of the current year;
      2) the sum of the obligatory pension contributions in the amount, established by the legislation of the Republic of Kazakhstan on pension provision;
      3) the amount of voluntary pension contributions made in his/her favor;
      4) the amount of insurance remunerations made in his/her favor by an individual under the accumulative insurance agreements;
      5) the amounts, aimed at repayment of a remuneration for the loans, received by an individual-resident of the Republic of Kazakhstan from the Housing Construction Saving Banks to improve the living conditions in the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan on housing construction savings;
      6) the expenses for covering of medical services (except for cosmetology) in the amount and under the conditions, established by paragraph 6 of this Article.
      2. If the amount of the tax deduction, provided by sub-paragraph 1) of paragraph 1 of this Article, exceeds the determined amount of employee’s taxable income per month, taking into account the adjustments, provided by Article 156 of this Code, reduced by the amount of obligatory pension contributions, the amount of the excess shall be consecutively transferred to the following months within a calendar year for reduction of the taxable income of the employee.
      In changing of an employer during a tax period, except for the cases of its reorganization, the amount of the excess, formed for the period of the previous employer, shall not be taken into account in a new employer.
      3. In case if an individual was an employee for less than sixteen calendar days during the month, in accordance with sub-paragraph 1) of paragraph 1 of this Article the tax deduction shall not be performed in determination of the employee’s income.
      4. In accordance with 1), 3) - 6) of paragraph 1 of this Article the right for the tax deduction shall be provided to a taxpayer for the income, received from one of the employers only on the basis of his/her submitted application.
      5. The right for the tax deductions, established by sub-paragraphs 3) - 5) of paragraph 1 of this Article, shall be provided if the appropriate documents are provided:
      1) a contract on pension provision by voluntary pension contributions and a document, confirming the payment of voluntary pension contributions;
      2) an insurance contract and a document, confirming the payment of insurance bonuses;
      3) a contract on a bank loan with a Housing Construction Saving Bank to improve living conditions in the territory of the Republic of Kazakhstan and a document, confirming the repayment of remuneration for the specified loan.
      6. The right for the tax deduction, established by sub-paragraph 6) of paragraph 1 of this Article, shall be given to a taxpayer under the following conditions:
      1) the total amount of a tax deduction, provided in accordance with sub-paragraph 6) of paragraph 1 of this Article and the amount of the adjustment, provided in accordance with sub-paragraph 18) of paragraph 1 of Article 156 of this Code in the aggregate for a calendar year, shall not exceed 8-fold of the minimum wage rate, established by the Law on the Republican Budget and which operates on January 1 of the appropriate financial year.
      2) an employer provided documents, confirming the receiving of medical services (except for cosmetology) and the actual expenses;
      3) excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 166 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 167. Calculation and withholding of the tax

      The amount of the individual income tax on an employee’s income, taxable at the source of payment, shall be calculated via applying of the rate, defined by paragraph 1 of Article 158 of this Code to the amount of the employee’s income, taxable at the source of payment and which is determined by Article 163 of this Code.

§ 2. An individual’s income from a tax agent

Article 168. An individual’s income from a tax agent

      1. An individual’s income from a tax agent, which is taxable at the source of payment, shall be determined as the income of the individual from the tax agent, subjected to taxation, taking into account the adjustments, provided by Article 156 of this Code.
      Unless otherwise provided by this Article, the taxable income of an individual from a tax agent is:
      1) the income of a person under a contract of civil nature, concluded with a tax agent in accordance with the legislation of the Republic of Kazakhstan;
      2) the payments to the individuals.
      2. For the purposes of this Article, the taxable income shall not include:
      1) the income, which is not taxable at the source of payment, established by Article 177 of this Code;
      2) the payments of the individual for purchase of personal property from them;
      3) the income, specified in sub-paragraphs 1) and 3) - 6) of Article 160 of this Code;
      4) excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).
      Footnote. Article 168 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 169. The calculated amounts of the tax

      The amount of the individual income tax shall be calculated via applying of the rate, established by paragraph 1 of Article 158 of this Code to the amount of the income of an individual from a tax agent, which is taxable at the source of payment and which is determined in accordance with Article 168 of this Code.

§ 3. Pension payments from the accumulative pension funds

Article 170. Pension payments

      1. The income in the form of pension payments, taxable at the source of payment, shall be determined as the income in the form of pension payments, which is taxable taking into account the adjustments, specified by Article 156 of this Code, reduced by the amount of the tax deductions, provided by this Article. At that, the adjustments, provided by Article 156 of this Code and the tax deductions shall be performed by the accumulative pension fund only, performing the pension payments from the obligatory pension contributions.
      The taxable income in the form of pension payments shall include the payments made by accumulative pension funds:
      1) from the pension savings of the taxpayers, formed at the expense of the obligatory pension contributions and (or) voluntary professional pension contributions in accordance with the legislation of the Republic of Kazakhstan, and (or) the voluntary pension contributions in accordance with the conditions of a contract on pension provision at the expense of the voluntary pension contributions. For the allowances, specified by this paragraph, when determining the income in the form of the pension allowances, taxable at the source of payment, the applicable tax deduction is the amount of one minimum wage rate, established by the Law on the Republican Budget and operating on the date of the income distribution, for each month of the income distribution regardless the periodicity of the payment, unless otherwise provided by this Article.
      2) in accordance with the legislation of the Republic of Kazakhstan to the individuals - the residents of the Republic of Kazakhstan who reached the retirement age and who are leaving or left the Republic of Kazakhstan for permanent residence in another country. The tax deduction in 12-fold of the minimum wage rate, established by the Law on the Republican Budget and operating on the date of the income accrual, shall be applied to the payments, provided by this sub-paragraph in determining the income in the form of pension payments, taxable at the source of payments, unless otherwise provided by this Article;
      3) in accordance with the legislation of the Republic of Kazakhstan to the individuals - the residents of the Republic of Kazakhstan who are not reached the retirement age and who are leaving or left for permanent residence outside the Republic of Kazakhstan;
      4) to the individuals in the form of pension savings, inherited in the order, established by the legislation of the Republic of Kazakhstan.
      2. Excluded by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).
      Footnote. Article 170 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010). 

Article 171. Calculation of the amount of the tax

      The amount of the individual income tax shall be calculated via applying of the rate established by paragraph 1 of Article 158 of this Code to the amount of income in the form of pension payments, taxable at the source of payment, determined in accordance with Article 170 of this Code.

§ 4. The income in the form of dividends, remunerations, winnings

Article 172. Calculation of the amount of the tax

      1. The amount of the individual income tax shall be calculated by applying the rates, established by paragraphs 1 and 2 of Article 158 of this Code to the amount of the calculated income in the form of the dividends, remunerations, winnings, taxable at the source of income.
      The income in the form of dividends, remunerations, winnings, taxable at the source of income is the income in the form of the dividends, remunerations, winnings, paid by a tax agent and taxable, taking into account the adjustments, provided by Article 156 of this Code.
      For the purposes of this part, the dividends shall also include the net income from a trust management of a founder of the trust management under an agreement on trust management or beneficiary in other cases of trust management, received from a legal entity which is the trust manager..
      2. The sum of the withheld individual income tax in paying of a winning, a remuneration under the presence of the documents, confirming the withholding of this tax at the source of payments, shall be attributed to the set-off of the individual income tax, calculated for a tax period by an individual entrepreneur, who calculates and pays the taxes in the order, established by Articles 178 and 179 of this Code.

§ 5. Scholarship

Article 173. Scholarship

      The income in the form of scholarship which is taxable at the source of payment shall be determined as the income in the form of scholarship, subjected to taxation, taking into account the adjustments, provided by Article 156 of this Code.
      Unless otherwise provided by this Article, the income in the form of a scholarship, subjected to taxation, is the amount of money, assigned by a tax agent to:
      the students of education institutions;
      culture, science, media workers and other individuals.
      The taxable income in the form of scholarship is not the income, specified by sub-paragraphs 1) - 4) and 6) of Article 160 of this Code. 

Article 174. Calculation of the amount of the tax

      The amount of the individual income tax shall be calculated via applying of the rate, established by paragraph 1 of Article 158 of this Code to the amount of income in the form of a scholarship, taxable at the source of payment.

§ 6. Income on accumulative insurance contracts

Article 175. Income on accumulative insurance contracts

      1. The income on accumulative insurance contracts, taxable at the source of payment, shall be determined as the disparity between the incomes on accumulative insurance contracts, which is taxable taking into account the adjustments, provided by Article 156 of this Code and the tax deduction in the cases and in the amount, specified by this Article.
      2. The taxable income on accumulative insurance contracts is:
      1) the insurance payments made by the insurance companies, insurance bonuses of which were paid:
      from the pension savings in the accumulative pension funds The tax deduction in the amount of one minimum wage rate, established by the Law on the Republican Budget and operating on the date of the income distribution for each month of the income accrual shall be applied to the payments, in determining the income under the accumulative insurance contracts, taxable at the source of payments, regardless of periodicity of payments;
      from insurance premiums made in his/her favor by an individual under a contract on accumulative insurance;
      from insurance bonuses, made by an employer in favor of an employee under a contract on accumulative insurance;
      2) repurchasing amounts, paid in case of early termination of these contracts;
      3) an excess of the amount of insurance payments made by an insurance company over the amount of insurance premiums which are paid from the funds, specified in sub-paragraph 1) of this Article;
      Footnote. Article 175 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010). 

Article 176. Calculation of the amount of the tax

      The amount of the individual income tax shall be calculated via applying of the rate, defined in paragraph 1 of Article 158 of this Code to the amount of the income on contracts of accumulative insurance, taxable at the source of payment, determined in accordance with Article 175 of this Code.

Chapter 20. INCOME WHICH IS NOT TAXABLE AT THE SOURCE OF PAYMENT

Article 177. Income which is not taxable at the source of payment

      The income which is not taxable at the source of payment shall include the followings of income:
      1) the property income;
      2) the income of an individual entrepreneur;
      3) the income of private notaries, private enforcement agents and lawyers;
      4) the other incomes.
      The property income is not the income, specified in sub-paragraphs 2) and 3) of the first part of this Article.
      The other income is not the income, specified in sub-paragraph 1), except for the income, coming from sources outside the Republic of Kazakhstan, and sub-paragraphs 2) and 3) of the first part of this Article.
      Footnote. Article 177 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

Article 178. Calculation of the individual income tax on income which is not taxable at the source of income

      1. Unless otherwise provided by Article 182 of this Code, the calculation of the individual income tax on income which is not taxable at the source of payment shall be personally performed by a taxpayer for a tax period via applying of the rate, established by paragraph 1 of Article 158 of this Code to the taxable amount of the appropriate income, which is not taxable at the source of payment, except for the taxpayers, specified in paragraphs 4 and 5 of this Article.
      At that, the amount of the calculated individual income tax shall be reduced by the amount of the individual income tax, for which the set-off is performed in accordance with Article 223 of this Code.
      The taxable amount of the appropriate income which is not taxable at the source of payment shall be determined as the disparity between the income, which is taxable taking into account the adjustments, provided by Article 156 of this Code and the tax deductions, established by paragraph 1 of Article 166 of this Code, taking into accounts the provisions of paragraphs 5 and 6 of Article 166 of this Code.
      2. If a taxpayer has severals of income, which is not taxable at the source of payment, except for the income of private notaries, private enforcement agents and lawyers, the calculation of the individual income tax shall be personally performed by the taxpayer when applying the rate, established by paragraph 1 of Article 158 of this Code to the amount of alls of income, which are taxable at the source of payment.
      3. The tax deductions, established by paragraph 1 of Article 166 of this Code shall be applied in calculating the individual income tax on the total amount of income which is not taxable at the source of payment in the case, if the specified deductions were not performed when determining the income of an employee.
      4. The individual entrepreneurs, except for those, specified in paragraph 5 of this Code, shall personally calculate the income tax of an individual entrepreneur for a tax period. The amount of the tax shall be calculated via applying of the rate, established by paragraph 1 of Article 158 of this Code to the income of the individual entrepreneur, reduced by the amount of the income and the expenses, provided by Article 133 of this Code, and the amount of the losses, incurred in accordance with Article 137 of this Code.
      At that, the amount of the calculated individual income tax shall be reduced by the amount of the individual income tax, for which the set-off is performed in accordance with Article 223 of this Code.
      5. Individual entrepreneurs, who apply the special tax regime for subjects of small business on the basis of the patent or the simplified declaration, shall calculate the individual income tax on income which is taxable within the specified tax regimes in accordance with the Chapter 61 of this Code.
      Footnote. Article 178 as amended by the Laws of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009).

Article 179. Deadlines for tax payment

      1. Payment of the individual income tax for a tax period shall be personally made by a taxpayer at the location (residence) no later than ten calendar days after the deadline, established for submission of the declaration for the individual income tax.
      2. The individual entrepreneurs, who apply the special tax regime for subjects of small business on the basis of the patent and the simplified declaration, shall pay the individual income tax for the income, which is taxable within the specified tax regime in accordance with Article 61 of this Code.
      Footnote. Article 179 as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2).

§ 1. Property income

Article 180. Property income

      1. The taxable property income shall include:
      1) the income from increase of the cost when undertaking the realization of the property;
      2) the income, received from leasing property to the persons who are not the tax agents.
      2. The income from increase of the cost in realizing property is the increase of the cost in realizing the following property:
      1) dwellings, summer cottages, garages, facilities of private farming which are on the right of ownership for less than a year from the date of the ownership right’s registration;
      2) the land and (or) land shares, provided for individual housing building, private farming, summer cottage building, for garage, on which there are the facilities, specified in sub-paragraph 1) of this paragraph and which are on the right of ownership for less than a year from the date of the ownership right’s registration;
      3) the land and (or) land shares, provided for individual housing construction, private farming, summer cottage building, for garage, on which there are the facilities, specified in sub-paragraph 1) of this paragraph in case that the period between the dates of composing legal documents for acquisition and for disposition of the land and (or) land share is less than a year;
      4) the land and (or) land shares, provided for the purposes, which are not specified in sub-paragraphs 2) and 3) of this paragraph;
      5) the securities, investment gold, and participation shares;
      6) the real estate, except for the real estate, specified in sub-paragraphs 1) - 4) of this paragraph;
      7) the motor vehicles and trailers, which are subjected to the state registration and which are on the right of property for less than a year from the date of the ownership right’s registration.
      In case of realization of a motor vehicle and (or) trailer, received on the basis of the warrant to operate the motor vehicle and (or) the trailer with the right of disposition for determination of the property income, a person, who is entrusted, shall inform the owner of the motor vehicle about the cost, for which this motor vehicle was realized, or shall pay the individual income tax on behalf of the owner of the motor vehicle, which is the fulfillment of the tax obligation of the motor vehicle’s owner.
      In case when an attorney realizes a motor vehicle and (or) a trailer, received on the basis of the warrant to operate the motor vehicle and (or) the trailer with the right of disposition, the increase of the cost shall be determined as the positive disparity between the realization of this motor vehicle by the person, who is entrusted on behalf of the owner and the cost of purchase by the owner of the realized motor vehicle.
      3. The income from increase of the cost when realizing the property, specified in paragraph 2 of this Article, except for the securities and a participation share, is the positive disparity between the cost of realization of the property and the cost of purchase, unless otherwise provided by this Code.
      In absence of the cost of purchase, the increase of the cost is the positive disparity between the cost of realization of property and the market value on the date when the ownership right for the realized property appeared.
      4. In realization of the real estate, purchased through share participation in a housing construction, the increase of the cost is the positive disparity between the cost of realization and the cost of the contract on the share participation in the housing construction.
      In realization of the real estate, purchased through the concession of the right of claim for a share in a residential building under the contract on share participation in a housing construction, the increase of the cost is the positive disparity between the cost of realization of the property and the cost, for which a taxpayer purchased the right of claim for the share in the residential building under the contract on the share participation in the housing construction.
      5. The market value of the realized property, specified in sub-paragraphs 1) and 6) of paragraph 2 of this Article on the date when the ownership right appeared, shall be determined by a taxpayer no later than the deadline, established for submission of the declaration for the individual income tax.
      For the purposes of this paragraph, the market value is the cost, determined in a report on evaluation, performed under a contract between an appraiser and a taxpayer in accordance with the legislation of the Republic of Kazakhstan on evaluation activity.
      6. In case, if there is no market value of the realized property, established in paragraph 5 of this Article, the increase of the cost is:
      1) for the property, specified in sub-paragraph 1) of paragraph 2 of this Article, - the positive disparity between the cost of the property and the evaluation cost of the property. At that, the evaluation cost is the cost, determined for calculation of the property tax by an authorized state body in the sphere of state registration of the ownership rights for a real estate on January 1 of the year when the ownership right for the property appeared;
      2) for the property, specified in sub-paragraph 6) of paragraph 2 of this Article, - the cost of realization of this property.
      7. Increase of the cost when undertaking the realisation of the securities and a participation share shall be determined in accordance with paragraphs 5 and 6 of Article 87 of this Code, unless otherwise provided for by this Article.
      8. Increase in the cost when undertaking the realisation of the securities, purchased by an individual on the option, is the positive disparity between the cost of realization and the cost of purchase. The cost of purchase shall include the cost of fulfillment of the option and the expenses for the purchase of the option.
      Footnote. Article 180 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 30.12.2009 No 234-IV (shall be enforced from 01.01.2009); dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011); dated 25.03.2011 No. 421-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

§ 2. Income of private notaries, private enforcement agents and lawyers

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

Article 181. Income of private notaries, private enforcement agents and lawyers

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).
      The income of the private notaries, private enforcement agents and lawyers is alls of income, received from activity for implementation of the court orders, notary and lawyer services, including the payment for legal assistance, notarial services, and the amount of reimbursements, related to protection and representation.
      Footnote. Article 181 as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

Article 182. Calculation and payment of the tax

      1. The amount of the individual income tax on income of private notaries, private enforcement agents and lawyers shall be calculated for the income, received in a month upon the results of each month via applying of the rate, established by paragraph 1 of Article 158 of this Code to the amount of the received income.
      2. The amount of the calculated tax shall be paid on a monthly basis no later than the 5th of the month, following the month, for which the income tax was calculated.
      Footnote. Article 182 as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

§ 3. Income of an individual entrepreneur

Article 183. Income of an individual entrepreneur

      1. The taxable income of an individual entrepreneur shall be determined in the order, established for determination of the object, taxable on the corporate income tax in accordance with Articles 83 - 133, 136, 137 and 224 of this Code, and taking into account the adjustments, provided by Article 156 of this Code and the tax deductions, established by paragraph 1 of Article 166 of this Code, taking into account the provisions of paragraphs 5 and 6 of Article 166 of this Code, unless otherwise provided by this Article.
      1-1. In determination of the taxable income of an individual entrepreneur in accordance with paragraph 1 of this Article, the provisions of sub-paragraphs 2), 3), 3-1), 3-2), 6) and 7) of paragraph 2 of Article 133 of this Code shall not be applied.
      2. The income of an individual entrepreneur, who applies the special tax regime for subjects of small business on the basis of the patent and the simplified declaration, shall be determined in accordance with Article 61 of this Code.
      Footnote. Article 183 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

§4. Other income

Article 184. Other income

      1. The other taxable income of a taxpayer shall include:
      1) the income, received from the sources outside the Republic of Kazakhstan;
      2) the income of the citizens of the Republic of Kazakhstan under the labor agreements (contracts) and (or) contracts of civil nature, concluded with the diplomatic and equivalent representative offices of a foreign state, consular offices of a foreign state, accredited in the Republic of Kazakhstan, who are not the tax agents;
      3) the income of domestic employees, received under the labor agreements, concluded in accordance with the labor legislation of the Republic of Kazakhstan;
      4) the income from a concession of the right of claim for a share in a residential building under a contract on share participation in a housing construction;
      5) the income of the citizens of the Republic of Kazakhstan under the labor agreements (contracts) and (or) contracts of civil nature, concluded with the international and government organizations, foreign and Kazakh non-governmental public organizations and funds, which are exempted from the obligation to calculate, withhold and transfer the individual income tax at the source of payment in accordance with the international agreements, ratified by the Republic of Kazakhstan.
      2. Taxation of the income, specified in sub-paragraph 1) of paragraph 1 of this Article, shall be performed taking into account the specifics, established by Chapter 27 of this Code.
      3. The income from a concession of the right of claim for a share in a residential building under a contract on share participation in a housing construction is the positive disparity between the cost of the concession of the right of claim and the cost of the contract on share participation in a housing construction.
      4. The income from a concession of the right of claim for a share of a residential building under a contract on share participation in a housing construction which was early purchased by concession of the right of claim under the contract on share participation in a housing construction is the positive disparity between the cost of the concession of the right of claim and the cost, for which he/she earlier purchased this right.
      Footnote. Article 184 in the wording of the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 21. THE DECLARATION FOR THE INDIVIDUAL INCOME TAX

Article 185. The declaration for the individual income tax

      1. The declaration for the individual income tax shall be submitted by the following resident taxpayers:
      1) the individual entrepreneurs;
      2) the private notaries, private enforcement agents, lawyers;
      3) the individuals who receive property income;
      4) the individuals who received other income, including the income outside the Republic of Kazakhstan;
      5) the individuals who have money on bank accounts in foreign banks, located outside the Republic of Kazakhstan.
      2. Deputies of the Parliament of the Republic of Kazakhstan, judges, and individuals, who are entrusted with the obligation to submit the declaration in accordance with the Constitutional Law of the Republic of Kazakhstan "On elections in the Republic of Kazakhstan ", the Criminal Executive Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan "On fighting corruption" shall submit the declaration for income and property, which are the objects of taxation and which are located in the Republic of Kazakhstan, as well as outside the Republic.
      3. The individual entrepreneurs, who apply the special tax regime for subjects of small business on the basis of the patent or the simplified declaration for the income, included in a taxation object in accordance with Article 427 of this Code, shall not submit the declaration for the individual income tax.
      Footnote. Article 185 as amended by the Law of the Republic of Kazakhstan dated 02.04.2010 No. 262-IV (shall be enforced from 21.10.2010).

Article 186. Deadlines for submission of the declaration

      The declaration for the individual income tax shall be submitted to a tax body at the location (residence) no later than March 31 of the year following the reporting tax period, except for the cases, provided by the Constitutional Law of the Republic of Kazakhstan "On elections in the Republic of Kazakhstan ", Criminal Executive Code of the Republic of Kazakhstan and the Law of the Republic of Kazakhstan "On Combating Corruption".
      Footnote. Article 186 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009).

Article 187. Disconfirmation of payments of the tax

      In cases of disconfirmation of payment of the individual income tax by the taxpayers, who submit the declaration on the individual income tax in accordance with sub-paragraph 4) of paragraph 1 and paragraph 2 of Article 185 of this Code, the calculation of the individual income tax shall be performed via applying of the rate, established by paragraph 1 of Article 158 of this Code to the amount of the income, for which the payment of the individual income tax is not confirmed.

SECTION 7. SPECIFICS OF THE INTERNATIONAL TAXATION

Chapter 22. BASIC PROVISIONS

Article 188. Basic principles of the international taxation

      1. Residents of the Republic of Kazakhstan shall pay taxes in the Republic of Kazakhstan for income from the sources in the Republic of Kazakhstan and outside the Republic in accordance with the provisions of this Code.
      2. Nonresidents shall pay taxes in the Republic of Kazakhstan for the income, coming from the sources in the Republic of Kazakhstan in accordance with the provisions of this Code.
      Nonresidents, who perform entrepreneurial activities in the Republic of Kazakhstan through a permanent establishment, shall pay taxes in the Republic of Kazakhstan for the income, coming from the sources outside the Republic of Kazakhstan, related to the activity of this permanent establishment.
      3. Residents and nonresidents shall pay other taxes and other obligatory payments to the budget of the Republic of Kazakhstan, established by this Code, when these obligations appear.
      Footnote. Article 188 as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).

Article 189. Residents

      1. For the purposes of this Code, the individuals who permanently reside in the Republic of Kazakhstan or who do not permanently reside in the Republic of Kazakhstan but whose center of vital interests is in the Republic of Kazakhstan shall be recognized as the residents of the Republic of Kazakhstan.
      2. A legal entity shall be recognized as permanently residing in the Republic of Kazakhstan for the current tax period, if it is located in the Republic of Kazakhstan for no less than one hundred eighty tree calendar days (including the arrival and departure days) in any consecutive twelve-month period which ends in the current tax period.
      3. The center of vital interests of an individual shall be considered as residing in the Republic of Kazakhstan under the simultaneous fulfillment of the following conditions:
      1) an individual is a citizen of the Republic of Kazakhstan or he/she has a permission to reside in the Republic of Kazakhstan (residence permit);
      2) a family and (or) close relatives of an individual reside in the Republic of Kazakhstan;
      3) presence of a real estate in the Republic of Kazakhstan, which belongs to an individual and (or) members of his/her family under the ownership right and which is available any time for his/her residence and (or) residence of the members of his/her family.
      4. Resident individuals, regardless of the time of their residence in the Republic of Kazakhstan and any other criteria, provided by this Article, are the individuals who are the citizens of the Republic of Kazakhstan, and those, who submitted an application for citizenship of the Republic of Kazakhstan or for permanent residence in the Republic of Kazakhstan without granting citizenship of the Republic of Kazakhstan:
      1) who were sent abroad by the government bodies, including employees of diplomatic and consular institutions, international organizations, and family members of these individuals;
      2) who are the crew members of vehicles, belonging to legal entities or citizens of the Republic of Kazakhstan, who perform regular international transportations;
      3) who are military and civilian personnel of military bases, military units, groups, compounds or contingents, stationed outside the Republic of Kazakhstan;
      4) who work at the facilities, located outside the Republic of Kazakhstan and owned by the Republic of Kazakhstan or subjects of the Republic of Kazakhstan (including those on the basis of concession contracts);
      5) who are the students, trainees and interns outside the Republic of Kazakhstan with the purpose of training or practicing during the whole period of training or practice;
      6) who are the teachers and researchers, outside the Republic of Kazakhstan with the purpose of teaching, counseling or conducting scientific works during the period of teaching or conducting these works;
      7) who are outside the Republic of Kazakhstan with the purpose of treatment or passing health-improving, preventive procedures.
      5. For the purposes of this Code, residents of the Republic of Kazakhstan are also the legal entities, created in accordance with the legislation of the Republic of Kazakhstan and (or) the legal entities, created in accordance with the legislation of a foreign state, the place of effective management (the location of the actual governing body) of which is located in the Republic of Kazakhstan.
      The place of effective management (the location of the actual governing body) is a place of holding meetings of the actual body (board of directors or a similar body) where basic management and (or) control is performed and strategic business decisions are made, necessary for implementation of entrepreneurial activity of a legal entity.
      Footnote. Article 189 as amended by the laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 190. Nonresidents

      1. For the purposes of this Code, the nonresidents are:
      1) the individuals and legal entities who are not the residents in accordance with the provisions of Article 189 of this Code;
      2) the foreigners or stateless persons who are recognized as nonresidents in accordance with the provision of an international agreement on avoidance of double taxation, despite the provisions of Article 189 of this Code.
      2. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 190 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 191. A permanent establishment of a nonresident

      1. Unless otherwise provided by this Code, a permanent establishment of a nonresident in the Republic of Kazakhstan is one of the following places of the activity in the Republic of Kazakhstan, through which it performs an entrepreneurial activity in the Republic of Kazakhstan, regardless the time period in which the activity is carried out:
      1) any place of production, processing, packaging arrangement, prepacking, packing and (or) supply of goods;
      2) any place of management;
      3) any place of geological study, exploration programs, preparatory works for mining and (or) mining and (or) control and (or) monitoring of exploration and (or) mining works;
      4) any place of the activity (including control or observation) which is related to a pipeline;
      5) any place of installation, mounting, assembly, setup, start-up of equipment. At that, the establishment shall be formed in fulfilling of at least one of thes of activities, specified in this sub-paragraph with subsequent maintenance of this equipment;
      6) any place of the activity, related to installation, setup and exploitation of slot machines (including consoles), computer networks and communication channels, amusements, as well as that, related to transport or other infrastructure;
      7) a place of realization of goods in the Republic of Kazakhstan, unless otherwise provided by paragraph 3 of this Article;
      8) any place of building and (or) construction and installation works, as well as providing services to supervise the execution of these works;
      9) location of an affiliate or a representative office, except for the representative office, specified in paragraph 4 of this Article;
      10) location of a person, performing the mediation activities in the Republic of Kazakhstan on behalf of nonresidents in accordance with the Law of the Republic of Kazakhstan "On insurance activity";
      11) location of a resident, who is a participant of an agreement on joint activity, concluded with the nonresident in accordance with the legislation of a foreign state or the Republic of Kazakhstan in case, if this joint activity is performed in the Republic of Kazakhstan.
      2. Unless otherwise provided by paragraph 8 of this Article, a permanent establishment is a place of provision of services, execution of works through employees or other personnel, hired by a nonresident for these purposes, if the activity of this nature continues in the Republic of Kazakhstan for more than one hundred eighty three calendar days within any consequent twelve-month period from the date of the beginning of entrepreneurial activity within one project or the related projects, providing services, executing works in the Republic of Kazakhstan which are not specified in paragraph 1 of this Article.
      For the purposes of this part, the related projects are the projects, contracts (agreements), which are interrelated and interdependent.
      The interrelated contracts (agreements) are the contracts (agreements), which simultaneously correspond with the following conditions:
      1) a nonresident or its interrelated party provides (executes) similar or uniform services (works) to the same tax agent or related party under these contracts (agreements);
      2) the period of time between the date of completion of services (works) under the same contract (agreement) and the date of conclusion of another contract (agreement) shall not exceed twelve consequent months.
      Contracts (agreements), concluded by a nonresident and its interrelated party with a tax agent or its interrelated party, non-fulfillment of the obligations of one of which by the nonresident or its interrelated party affects the fulfillment of the obligations by this nonresident or its interrelated party under another contract (agreement), shall be recognized as interrelated.
      3. A nonresident shall form a permanent establishment in the Republic of Kazakhstan when realizing goods in exhibitions and trade fairs, held in the territory of the Republic of Kazakhstan, if this realization lasts for more than ten calendar days and other is not provided by paragraph 8 of this Article.
      4. Carrying out of the activity of a preparatory or auxiliary character by a nonresident of the Republic of Kazakhstan, which differs from the underlying activity, shall not lead to the formation of a permanent establishment, if this activity lasts for no more than three years and other is not provided by paragraph 8 of this Article. At that, the activity of a preparatory or auxiliary character must be performed for the very nonresident, and not for the third parties. Preparatory and auxiliary activity shall include:
      1) use of any place solely for the purpose of storage and (or) display of goods, belonging to the nonresident;
      2) maintenance of a permanent place of the activity solely for the purpose of purchasing goods without their realization;
      3) maintenance of a permanent place of the activity solely for collection, processing and (or) dissemination of information, advertisement or studying the market of goods, works, services realized by a nonresident, unless this activity is not the underlying activity of this nonresident.
      5. If a nonresident performs entrepreneurial activity in the Republic of Kazakhstan through a dependent agent (an individual or a legal entity), this nonresident shall be considered as the one who has permanent establishment in connection with other activity, which is performed by this nonresident, regardless of the provisions of paragraphs 1 and 2 of this Article, unless otherwise provided by paragraph 8 of this Article.
      For the purposes of this part, a dependent agent is a person who simultaneously corresponds with the following conditions:
      1) it is authorized on the basis of contractual relations to represent interests of a nonresident in the Republic of Kazakhstan, to operate and (or) perform certain legal actions on behalf and at the expense of the nonresident;
      2) the activity, specified in sub-paragraph 1) of this paragraph shall be performed by him not within the activity of a customs representative, a professional participant of the market of securities and other brokering activities (except for the activity of an insurance broker);
      3) his activity shall not be limited by thes of activities, enumerated in paragraph 4 of this Article.
      6. A subsidiary of a nonresident legal entity, created in accordance with the legislation of the Republic of Kazakhstan, shall be considered as a permanent establishment of the nonresident, if there are the relations between the subsidiary and the nonresident legal entity, meeting the requirements of paragraph 5 of this Article. In other cases, a subsidiary of a nonresident legal entity shall not be considered as a permanent establishment of the nonresident legal entity.
      7. Unless otherwise provided by paragraph 8 of this Article, a nonresident who provides foreign personnel for work in the territory of the Republic of Kazakhstan to a legal entity, including a nonresident, which operates in the Republic of Kazakhstan through a permanent establishment, does not form a permanent establishment on these services in the Republic of Kazakhstan under the simultaneous fulfillment of the following conditions:
      1) if this personnel operates on behalf and in the interests of a legal entity, which it was provided to;
      2) a nonresident who provides foreign personnel does not bear responsibility for the results of works of the provided personnel;
      3) the income of a nonresident from provision of foreign personnel for a tax period, does not exceed ten percent of the total amount of the expenses of the nonresident for provision of this personnel for the specified period.
      A nonresident shall be obliged to provide copies of the primary documents to confirm the cost of such services, including the income of the foreign personnel. For the purposes of calculating the corporate income tax from an income of the nonresident, who provides foreign personnel, these services of the nonresident shall be recognized as the services, provided outside the Republic of Kazakhstan under fulfillment of the conditions, established by this paragraph.
      8. A nonresident, performing an entrepreneurial activity in the Republic of Kazakhstan, which leads to the formation of a permanent establishment, shall be obliged to register as a taxpayer in a tax body in the order, established by Article 562 of this Code.
      In case, if a nonresident performs the entrepreneurial activity, which leads to the formation of two or more permanent establishments, which are subjected to registration in one tax body, the one permanent establishment in aggregate by a group of such permanent establishments of the nonresident shall be registered.
      In case if a nonresident has a registered permanent establishment, which performs one of thes of activities, specified in paragraphs 2, 3, 4, 5 or 7 of this Article and which performs similar activity or the same activity at the place which is different from place of registration of this permanent establishment, the implementation of this activity shall lead to the formation of a permanent establishment and shall be subjected to registration from the date of the beginning of similar or the same activity.
      In case, if a nonresident resumes the activity within a consequent twelve-month period after the date of exclusion of a permanent establishment of this nonresident from the state database of these taxpayers, this nonresident shall be recognized as the one who formed a permanent establishment and shall be subjected to registration as a taxpayer from the date of implementation of this activity. The provisions of this part shall be applied in case, if the nonresident performs one of thes of activities, specified in paragraphs 2, 3 or 4 of this Article, which is the same or similar activity of the permanent establishment of this nonresident, who is excluded from the state database of these taxpayers.
      9. In case if nonresidents perform the activity in the Republic of Kazakhstan under a contract on joint activity:
      1) the activity of each participant of this contract shall form a permanent establishment, meeting the provisions, established by this Article;
      2) fulfillment of the tax obligation shall be personally performed by each participant of this contract in the order, established by this Code.
      10. The activity of a nonresident shall form a permanent establishment in accordance with the provisions of this Article regardless of absence of the registration of the nonresident in the tax bodies as a taxpayer or registration in the judicial bodies.
      11. The date of commencement of activities by a nonresident in the Republic of Kazakhstan for the purposes of application of this Code is the date of:
      1) conclusion of one of the following contracts (agreements) on:
      execution of works, provision of services in the Republic of Kazakhstan;
      authorization to perform actions on behalf of the nonresident in the Republic of Kazakhstan;
      purchase of goods in the Republic of Kazakhstan for realization;
      execution of works, provision of services in the Republic of Kazakhstan within a contract of joint activity;
      purchase of works, services for the purposes of execution of the works, provision of the services in the Republic of Kazakhstan;
      2) conclusion of the first labor agreement or other agreement of civil nature with an individual in the Republic of Kazakhstan or the date of arrival in the Republic of Kazakhstan of an employee to fulfill the conditions of the contract, specified in sub-paragraph 1) of this paragraph. At that, the date of beginning of performing the nonresident’s activity in the Republic of Kazakhstan cannot be earlier than the one of the first dates, specified in this sub-paragraph;
      3) entrance into force of a document, certifying the right of the nonresident to perform the activities, specified in paragraphs 3) and 4) of paragraph 1 of this Article.
      If there are several conditions of this paragraph, the earliest of the dates, specified in this paragraph, shall be recognized as the date of the beginning of the activity in the Republic of Kazakhstan.
      12. In case if a nonresident performs the activity through an affiliate or a representative office, which does not lead to the formation of a permanent establishment in accordance with an international agreement on double taxation avoidance or paragraph 4 of this Article, the provisions of this Code, established for a permanent establishment of a nonresident, shall be applied to this affiliate or the representative office of the nonresident. At that, this affiliate or permanent establishment shall have the right to apply the provisions of an international agreement on double taxation avoidance in accordance with Article 217 of this Code.
      Footnote. Article 191 in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 192. A nonresident’s income from the sources in the Republic of Kazakhstan

      1. The income of a nonresident from the source in the Republic of Kazakhstan are the following:
      1) the income from realization of goods in the Republic of Kazakhstan, and the income from export of goods, located in the Republic of Kazakhstan within the foreign trade activity;
      2) the income from execution of works, provision of services in the Republic of Kazakhstan;
      3) the income from provision of management, financial (excluding insurance and (or) re-insurance), consulting, auditing, legal (except for services on representation and protection of the rights and legitimate interests in courts, arbitration or arbitral tribunal, as well as the notary services) services outside the Republic of Kazakhstan.
      For the purposes of this part, the financial services are the activity of participant of the insurance market, the market of securities, accumulative pension funds, banking activity, the activity of organizations, performing certains of banking operations, and the activity of the central depository and mutual insurance companies;
      4) the income of a person, registered in a state with preferential taxation, which is determined by the Government of the Republic of Kazakhstan in accordance with Article 224 of this Code, from execution of works, provision of services regardless the place of their actual executions, provision, and other income, specified by this Article.
      The provisions of this sub-paragraph shall not be applied to the income from tourist services, provided to an individual in the territory of a state with preferential taxation by a nonresident, registered in the territory of this state.
      5) the income from increase of the cost when undertaking the realisation of:
      the property, located in the territory of the Republic of Kazakhstan, the rights for which or transactions with which shall be subjected to the state registration in accordance with the legislative acts of the Republic of Kazakhstan;
      the property located in the territory of the Republic of Kazakhstan, which is subjected to the state registration in accordance with the legislative acts of the Republic of Kazakhstan;
      the securities, issued by a resident, and shares of participation in the authorized capital of a resident legal entity, consortium, located in the Republic of Kazakhstan;
      the shares issued by a nonresident, and shares of participation in the authorized capital of a nonresident legal entity, consortium, if 50 and more percent of the cost of these shares, shares of participation or assets of the nonresident legal entity is the property, located in the Republic of Kazakhstan;
      6) the income from a concession of the right of claim for a debt to a resident or a nonresident, working in the Republic of Kazakhstan through a permanent establishment, - for a taxpayer, who conceded the right of claim;
      7) the income from a concession of the right of claim for a debt to a resident or a nonresident, working in the Republic of Kazakhstan through a permanent establishment, - for a taxpayer, who purchases the right of claim;
      8) a forfeit (fine, penalty) and others of sanctions, except for the unreasonably withheld earlier penalties, returned from the budget;
      9) the income in the form of dividends, coming from a resident legal entity, as well as from mutual investment funds, created in accordance with the Laws of the Republic of Kazakhstan;
      10) the income in the form of remunerations, except for the remunerations for the debt securities;
      11) the income in the form of remunerations for the debt securities, received from an issuer;
      12) the income in the form of royalties;
      13) the income from leasing of property, located in the Republic of Kazakhstan;
      14) the income, received from a real estate, located in the Republic of Kazakhstan;
      15) the income in the form of insurance remunerations, paid for insurance contracts or re-insurance of risks which appear in the Republic of Kazakhstan;
      16) the income from provision of services for international transportations.
      For the purposes of this part, the international transportation is any transportation of passengers, baggage, goods, including mail by a marine vessel, river boat or aircraft, motor vehicle or rail transport between the places, located in different states, one of which is the Republic of Kazakhstan.
      For the purposes of this paragraph, the following shall not be recognized as the international transportation:
      transportation, performed solely between points, located outside the Republic of Kazakhstan, and solely between points, located in the territory of the Republic of Kazakhstan;
      transportation of mineral resources through a pipeline;
      16-1) the income in the form of payment for demurrage of a vessel under the loading and unloading operations in excess of the laytime, established in a contract (agreement) on maritime transport transportation;
      17) the income, received from exploitation of pipelines, power lines, fiber optic lines of communication in the territory of the Republic of Kazakhstan;
      18) the income of a nonresident individual from the activity in the Republic of Kazakhstan under a labor agreement (contract), which is concluded with a resident or nonresident who is an employer;
      19) director's fee earnings, and (or) other payments to the members of a management body (board of directors or other body) received by the specified persons in connection with performance of their management responsibilities in relation to a resident, regardless of the actual place of performance of these responsibilities;
      20) the bonuses of a nonresident individual which are paid to him/her in connection with residence in the Republic of Kazakhstan by a resident or a nonresident who is an employer;
      21) the income of a nonresident legal entity from the activity in the Republic of Kazakhstan in the form of material gain, received from an employer.
      For the purposes of this part, a material gain is also:
      a payment and (or) reimbursement of the cost of goods, executed works, provided services, received by a nonresident individual from the third persons;
      the negative disparity between the cost of goods, works, services realized to a nonresident legal entity and the cost of purchase or the prime cost of these goods, works, services;
      writing-off of a debt or an obligation from a nonresident legal entity;
      21-1) the income of a nonresident individual in the form of material gain, received from a person who is not an employer.
      For the purposes of this part, a material gain is also:
      a payment and (or) reimbursement of the cost of goods, executed works, provided services, received by a nonresident individual from the third persons;
      the negative disparity between the cost of goods, works, services realized to a nonresident individual and the cost of purchase or the primary cost of these goods, works, services;
      writing-off of the cost and obligation from a nonresident individual;
      22) the pension payments made by accumulative pension funds-residents;
      23) the income which is paid to the workers of culture and arts: actors (actresses) of theatre, film, television, musicians, artists, athletes - from the activity in the Republic of Kazakhstan, regardless of how and to whom the payments are made;
      24) the winnings which are paid by a resident or a nonresident, who have a permanent establishment in the Republic of Kazakhstan, if the payment of a winning is made in connection with the activity of this permanent establishment;
      25) the income which is received from provision of independent personal (professional) services in the Republic of Kazakhstan;
      26) the income in the form of gratuitously received or inherited property, including works, services, except for the gratuitously received property by a nonresident individual from a resident individual.
      The cost of gratuitously executed works, provided services shall be determined in the amount of expenses, incurred in connection with execution of these works, provision of the services.
      The cost of gratuitously received property, except for the gratuitously executed works, provided services, shall be determined in the amount of its balance cost by the accounting data of a person who transferred this property at the date of the property transfer.
      If it is impossible to determine the cost of a gratuitously received property from the accounting data and an inherited property, the cost of such property shall be determined as of the date of the transfer or entry into the inheritance via one of the following methods:
      on the basis of the cost, established by a state body in the sphere of registration of the rights for real estate as of January 1 of a calendar year, during which this property was received;
      on the basis of the rate of a security at Kazakhstan or a foreign Stock Exchange as of the date of receipt of the security (entry) in the inheritance.
      If it is impossible to determine the cost of a gratuitously received property or an inherited property, established by this sub-paragraph, the cost shall be determined on the basis of a report on the property valuation;
      27) the income from derivative financial instruments;
      28) the income received under an act on establishment of a trust management of property from a resident trust manager, which is not entrusted with fulfillment of the tax obligation for a nonresident in the Republic of Kazakhstan, who is a founder of the trust management under the contract of the trust management of property or beneficiary in other cases of the trust management;
      28-1) the income from an investment deposit, placed in an Islamic bank;
      29) the other income which appears as a result of the activity in the Republic of Kazakhstan.
      At that, the provision of sub-paragraphs 3), 4), 10) - 12), 21-1) and 24) of this Article shall be applied under the condition of distribution and (or) payment of the income:
      by a resident;
      by a nonresident, working in the Republic of Kazakhstan through a permanent establishment, if the payments are related to the activity or property of this permanent establishment;
      by an affiliate, representative office of a nonresident in case, if the affiliate, representative office is not a permanent establishment in accordance with an international agreement on double taxation avoidance or paragraph 4 of Article 191 of this Code.
      2. The income of a nonresident from the sources in the Republic of Kazakhstan is not:
      1) the amount of the income tax which is calculated from the income of the nonresident in accordance with the provisions of this Code and which is paid to the budget of the Republic of Kazakhstan by a tax agent from its own funds without withholding it;
      2) compensation of expenses to members of a management body (board of directors or other body), incurred in connection with fulfillment of the management responsibilities, entrusted to them by a resident, within:
      the actually incurred expenses for travel to the place of managing responsibilities and back, including payment of costs for the reservation, on the base of the documents, confirming these expenses (including an electronic ticket if a document, confirming the fact of the payments of its cost is presented);
      the actually incurred expenses for renting accommodation on the basis of the documents, confirming these expenses but not more than the marginal rates of reimbursement for rent of single standard rooms in hotels by public officials who are on working trips abroad;
      the amounts of money no more than 6-fold of the monthly calculation index, established by the Law on the Republican Budget and operating on January 1 of the appropriate financial year, per day - for the period of staying in the Republic of Kazakhstan for fulfillment of the management responsibilities up to forty days;
      the amounts of money no more than 8-fold of the monthly calculation index, established by the Law on the Republican Budget and operating on January 1 of the appropriate financial year, per year - for the period of staying outside the Republic of Kazakhstan for fulfillment of the management responsibilities up to forty days. At that, the place of fulfillment of the management responsibilities shall not coincide with the place of residence.
      Footnote. Article 192 as amended by the Law of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 23. THE ORDER OF TAXATION OF INCOME OF NONRESIDENT LEGAL ENTITIES WHICH PERFORM THE ACTIVITY WITHOUT FORMING A PERMANENT ESTABLISHMENT IN THE REPUBLIC OF KAZAKHSTAN

Article 193. The order of calculation and withholding of the corporate income tax at the source of payment

      1. The income of a nonresident legal entity, working without forming a permanent establishment, determined by Article 192 of this Code, shall be taxable by the corporate income tax at the source of payment without deductions.
      At that, the amount of the corporate income tax, withheld at the source of payment, shall be calculated by a tax agent via applying of the rates, established by Article 194 of this Code to the amount of the income, taxable at the source of payment, specified in Article 192 of this Code.
      Calculation and withholding of the corporate income tax on the income which is taxable at the source of payment shall be performed by a tax agent:
      1) no later than the date of payment of the income to a nonresident legal entity - on the calculated and paid income;
      2) no later than the deadline, established by paragraph 1 of Article 149 of this Code for submission of the declaration for the corporate income tax - on the calculated and paid income which was deducted.
      1-1. For the purposes of this Article, the increase of the cost when undertaking the realization of the securities, share of participation, shall be determined in accordance with Article 87 of this Code.
      2. The corporate income tax at the source of payment shall be withheld by a tax agent regardless of the form and the place of the payment of the income to a nonresident legal entity.
      3. The obligation and responsibility to calculate, withhold and transfer the corporate income tax at the source of payment to the budget shall be entrusted to the following persons, who pay the income to a nonresident and who are recognized as the tax agents:
      1) an individual entrepreneur;
      2) a nonresident legal entity, working in the Republic of Kazakhstan through an affiliate, representative office, in case if the affiliate, representative office does not form a permanent establishment in accordance with an international agreement on avoidance of double taxation or with paragraph 4 of Article 191 of this Code;
      3) a legal entity, including a nonresident, working in the Republic of Kazakhstan through a permanent establishment.
      At that, a nonresident legal entity shall be recognized as a tax agent from the date of the registration of an affiliate, representative office or permanent establishment without opening an affiliate or a representative office in the tax bodies of the Republic of Kazakhstan;
      4) a resident-issuer of the underlying asset of depository receipts;
      5) a nonresident legal entity, except for those, specified in sub-paragraphs 2) and 3) of paragraph 3 of this Article, which purchases securities, participation shares when not fulfilling the conditions, established by sub-paragraph 7) of paragraph 5 of Article 193 of this Code.
      3-1. The obligation of a tax agent to withhold and transfer the corporate income tax at the source of payment shall be recognized as fulfilled when the tax agent pays the corporate income tax, calculated from the income of a nonresident in accordance with the provisions of this Code from its own funds without withholding it.
      4. The payment of income is a transfer of money in cash and (or) non-cash forms, securities, participation shares, goods, property, execution of works, provision of services, write-off and set-off of a debt, which is made for repayment of the debt owed to a nonresident on payment of the income from sources in the Republic of Kazakhstan.
      For the purposes of this part, the payment of income is the determination of income in accordance with paragraphs two - five of the first part and the second part of sub-paragraph 14) of paragraph 1 of Article 12 of this Code in taxation of dividends which appear in adjusting taxation objects in accordance with this Code and the legislation of the Republic of Kazakhstan on the Transfer Pricing. At that, the date of the income payment is the deadline, established by paragraph 1 of Article 149 of this Code for submission of the declaration for the corporate income tax.
      4-1. If the contracts, concluded with nonresidents, have the regulations which provide execution, provision of variouss of works, services in the Republic of Kazakhstan and outside the Republic, the order of calculation and withholding of the income tax at the source of income, established by this Article, shall be separately applied to each of the works, services. Each phase of execution of the works, provision of the services by a nonresident within the single industrial and technological cycle shall be considered as the separates of works, services for the purposes of calculation and withholding of the income tax at the source of payment from the nonresidents’ income.
      At that, the total amount of income of a nonresident under the foregoing contracts shall be reasonably distributed on income, received from execution of works, provision of services in the Republic of Kazakhstan and outside the Republic.
      For the purposes of applying the provisions of this paragraph, a nonresident shall be obliged to submit to a recipient of the services the copies of the documents, confirming the reasonableness of distribution of the total amount of the nonresident’s income on the income, received from execution of works, provision of services in the Republic of Kazakhstan and on the income, received from execution of works, provision of services outside the Republic.
      The total amount of income of a nonresident, received under the foregoing contracts from execution of works, provision of services in the Republic of Kazakhstan and outside the Republic shall be taxable when unreasonably distributing income of the nonresident led to reduction of the amount of income of the nonresident, taxable in the Republic of Kazakhstan in accordance with the provisions of this Article.
      5. The following shall not be taxable:
      1) the payments connected with the supply of goods to the Republic of Kazakhstan within the foreign trade activities, except for the provided services, executed works in the Republic of Kazakhstan connected with this supply;
      2) the income from provision of services for opening and maintaining correspondent accounts of nonresident banks and calculations on them as well as payments through international credit cards;
      3) the dividends, except for those, specified in sub-paragraph 4) of paragraph 1 of Article 192 of this Code, under simultaneous fulfillment of the following conditions:
      a taxpayer shall possess shares or participation shares, on which the dividends paid, for more than three years at the date of distribution of the dividends;
      a legal entity which pays the dividends shall not be a subsoil user during the period, for which the dividends are paid;
      more than 50 percent of the cost of assets of a legal entity which pays the dividends at the date of payment of the dividends makes the property of persons (a person) who are (is) not subsoil users (user).
      The provisions of this sub-paragraph shall only be applied to the dividends received from a resident legal entity in the form of:
      the income which is payable on shares, including the shares which are the basic assets of depository receipts;
      a part of net income, distributed by a legal entity among its founders, participants;
      the income from distribution of property when liquidating a legal entity and when reducing the authorized capital by proportional reduction of the size of founders, participants or by full or partial repayment of shares of founders, participants, and when a founder, a participant withdraws a share of participation in the legal entity, except for the property, brought in by the founder, participant as a contribution to the authorized capital.
      At that, a share of property of persons (a person), who are (is) subsoil users (user), in the cost of assets of a legal entity who pays dividends, shall be determined in accordance with Article 197 of this Code;
      4) the income from shares of open mutual investment funds in their redemption by the management company of the fund;
      5) the dividends and remunerations for securities which are on the official list of the Stock Exchange, operating in the Republic of Kazakhstan, at the date of distribution of these dividends and remunerations;
      6) the remunerations for the government-issued securities, agency bonds and income from increase of the cost when realizing the government-issued securities, agency bonds;
      7) the income from increase of the cost when realizing shares, issued by a legal entity, or shares of participation in the legal entity or the consortium, specified in sub-paragraph 5) of paragraph 1 of Article 192 of this Code, except for those, specified in sub-paragraph 4) of paragraph 1 of Article 192 of this Code, unless otherwise provided by sub-paragraph 8) of this paragraph, under simultaneous fulfillment of the following conditions:
      a taxpayer shall possess these assets or participation shares for more than three years at the date of realization of the shares and participation shares;
      a legal entity - issuer or a legal entity, a share of participation in which is realized, or a participant of a consortium who realizes a share of participation in this consortium is not a subsoil user;
      more than 50 percent of the cost of assets of a legal entity - issuer or a legal entity, a share of participation in which is realized, or the total cost of assets of participants of a consortium, a share of participation in which is realized, at the date of this realization makes the property of persons (a person), who are (is) not subsoil users (user);
      8) the income from increase of the cost when realizing via the method of open trading at the Stock Exchange operating in the Republic of Kazakhstan or a foreign stock exchange of the securities, which are at the date of the realization on the official list of this Stock Exchange.;
      9) the remunerations for conventional bank deposits of a nonresident legal entity, specified in Article 216 of this Code;
      10) the payments, connected with an adjustment of the cost for the quality of crude oil, transported by a single pipeline system outside the Republic of Kazakhstan;
      11) the amounts of accumulated (distributed) remunerations for the debt securities paid in their purchase by resident customers;
      12) the income from transfer of the basic assets to the financial leasing under the contracts of international financial leasing;
      13) the income from execution of works, provision of services outside the Republic of Kazakhstan, except for the income, specified in sub-paragraphs 3), 4) of paragraph 1 of Article 192 of this Code;
       Note of the RCLI!
      Sub-paragraph 14) shall be enforced from 01.01.2009 and operate until 01.01.2016 (see Article 2 of the Law of the Republic of Kazakhstan dated 19.03.2010 No. 258-IV).
      14) the payments which are made from a grant within an intergovernmental agreement, a participant of which is the Republic of Kazakhstan, aimed at support (assistance) of low-income citizens in the Republic of Kazakhstan;
      15) the income from execution of works, provision of services:
      to the autonomous education organizations, specified in sub-paragraphs 2) and 3) of paragraph 1 of Article 135-1 of this Code;
      to the autonomous education organizations, specified in sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code for thes of activities, specified by sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code.
      6. Taxation of income of a nonresident legal entity at the source of payment shall be performed regardless of how the nonresident uses the income in favor of the third persons and (or) the structural units in other states.
      Footnote. Article 193 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 19.03.2010 No. 258-IV (shall be enforced from 01.01.2009 and operate until 01.01.2016); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 194. The rates of the income tax at the source of income

      Income of a nonresident, working without forming a permanent establishment, from the sources in the Republic of Kazakhstan, shall be taxable at the source of payment at the following rates:
      1) the income, determined by Article 192 of this Code, except for that, specified in sub-paragraphs 2) - 6) of this Article, - 20 percent;
      2) the income, specified in sub-paragraph 4) of paragraph 1 of Article 192 of this Code, - 20 percent;
      Note of the RCLI!
      Operation of sub-paragraph 3) in the part of the amount of the rate of the income tax at the source of payment is suspended until 01.01.2012 by the Law of the Republic of Kazakhstan dated 10.12.2008 No. 100-IV and the rate operates during the suspension period.
      3) the insurance premiums under the risks’ insurance contracts - 15 percent;
      4) the insurance premiums under the risks re-insurance contracts - 5 percent;
      5) the income from provision of international transportation services - 5 percent;
      6) the income from increase of the cost, dividends, remunerations, royalties - 15 percent.
      Footnote. Article 194 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 195. The order and the deadlines for transfer of the corporate income tax at the source of income

      1. The corporate income tax at the source of income, withheld from the income of a nonresident legal entity shall be transferred by a tax agent to the budget:
      1) on calculated and paid amounts of income, except for the case, specified in sub-paragraph 3) of this paragraph - no later than twenty five calendar days after the end of the month, in which the payment of the income was made, under the market exchange rate as of the date of the payment;
      2) on the distributed but not paid amount of income when attributing them to deductions - no later than ten calendar days after the deadline, established for submission of the declaration for the corporate income tax under the market rate of exchange on the last day of the tax period, established by Article 148 of this Code in the declaration for the corporate income tax, for which the nonresident’s income was deducted.
      The provision of this sub-paragraph shall not be applied to the remunerations for the debt securities and the deposits, the deadlines for repayment of which come ten calendar days after the deadline, established for submission of the declaration for the corporate income tax. The provisions of sub-paragraph 1) of paragraph 1 of this Article shall be applied to this case;
      3) in case of an advance payment - no later than twenty five calendar days after the end of the month, in which the income of a nonresidential legal entity was distributed within the amount of the advance, under the market rate of exchange on the date of its distribution.
      2. If the amount of income of a nonresident was deducted in the declaration for the corporate income tax for the tax period, established by Article 148 of this Code, but at that, the payment of this income to a nonresident was made at the end of such period, the income tax at the source of payment shall be transferred by a tax agent to the budget within the deadlines, established by sub-paragraph 2) of paragraph 1 of this Article.
      3. Transfer of the amounts of the income tax from the income of a nonresident legal entity at the source of payment to the budget shall be made by a tax agent at its location.
      A nonresident legal entity, working in the Republic of Kazakhstan through a permanent establishment, shall transfer the amounts of the income tax at the source of payment from the income of the nonresident at the location of the permanent establishment.
      Footnote. Article 195 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 196. Submission of the tax reporting

      A tax agent shall be obliged to submit a calculation of the corporate income tax withheld at the source of payment from the income of a nonresident to a tax body at its location within the following deadlines:
      1) for the first, second and third quarters - no later than the 15th of the second month following the quarter, in which payment of the income of the nonresident was made;
      2) for the fourth quarter - no later than the 31st of March of the year following the tax period, established by Article 148 of this Code, in which the payment of the nonresident’s income was made and (or) for which the distributed but not paid income of the nonresident was deducted.
      Footnote. Article 196 in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 197. Calculation, withholding and transfer of the income tax from increase of the cost when undertaking the realization of the property, located in the Republic of Kazakhstan, and shares, participation shares, related to subsoil use in the Republic of Kazakhstan

      Footnote. The title in the wording of the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009).
      1. This Article shall be applied to the income of a nonresident from increase of the cost when undertaking the realization of:
      1) the property, located in the Republic of Kazakhstan, the rights on which or transactions with which shall be subjected to the state registration in accordance with the legislative acts of the Republic of Kazakhstan;
      2) the property, located in the Republic of Kazakhstan which is subjected to the state registration in accordance with the legislative acts of the Republic of Kazakhstan;
      3) the shares, issued by a resident and a share of participation in the authorized capital of a resident legal entity which is a subsoil user or a consortium, a participant (participants) of which is (are) a subsoil user (subsoil users);
      4) the shares, issued by a resident legal entity and the shares of participation in the authorized capital of a resident legal entity or a consortium in incompatibility with the conditions, established by sub-paragraph 7) of paragraph 5 of Article 193 or sub-paragraph 8) of paragraph 1 of Article 200-1 of this Code;
      5) the shares, issued by a nonresident legal entity and shares of participation in the authorized capital of a resident legal entity or a consortium in incompatibility with the conditions, established by sub-paragraph 7) of paragraph 5 of Article 193 or sub-paragraph 8) of paragraph1 of Article 200-1 if this Code;
      At that, the increase of the cost shall be determined in the following order:
      1) when undertaking the realization of the property, specified in sub-paragraphs 1) and 2) of this paragraph - as the positive disparity between the cost of realization of the property and the cost of its purchase;
      2) when undertaking the realization of the shares and participation shares - in accordance with Article 87 of this Code.
      1-1. For the purposes of this Article and Articles 133, 156, 193 and 200-1 of this Code, a share of property of a subsoil user (subsoil users) in the cost of assets of a legal entity on the date of realization of the shares (participation shares) or payment of dividends shall be determined as the ratio of the cost (value) of the property of the subsoil user (subsoil users), the shares (participation shares) of which are owned by the legal entity, which pays the dividends or the shares (participation shares), which are realized, to the total cost of the assets of the legal entity.
      For the purposes of this Article and Articles 133, 156, 193 and 200-1 of this Code, a share of property of a subsoil user (subsoil users) in the total cost of assets of participants of a consortium on the date of realization of the shares of participation shall be determined as the ratio of the cost (value) of property of the subsoil user (subsoil users), shares (participation shares) of which are owned by the participants of the consortium, the shares of participation in which are realized, to the amount of the total cost of the assets of these participants.
      The cost of property of a subsoil user of the Republic of Kazakhstan (depending on its organizational and legal form) is the balance cost:
      of a share of participation in this subsoil user which is owned by a legal entity that pays dividends and the shares (participation shares) of which are realized;
      of the shares, issued by this subsoil user of the Republic of Kazakhstan which are owned by a legal entity, the shares (participation shares) of which are realized.
      The total cost of assets of a legal entity which pays dividends or the shares (participation shares) of which are realized is the amount of the balance costs of all assets of this legal entity.
      The balance cost of assets shall be determined on the basis of the data of a separate financial reporting of a legal entity which pays dividends or the shares (participation shares) of which are realized, or participants of a consortium, the shares of participation in which are realized, composed and approved in accordance with the requirements of the legislation of the state where this consortium of legal entity was created:
      on the date of payment of the dividends or transfer of the ownership right for the shares (participation shares) to a customer;
      when there is no separate financial reporting at the date of payment of the dividends or transfer of the ownership right for the shares (participation shares) to a customer - at the last reporting date preceding the date of payment of the dividends and transfer of the ownership right for the shares (participation shares) to a customer.
      2. The income of a nonresident, specified in paragraph 1 of this Article, except for the income, specified in sub-paragraph 8) of paragraph 5 of Article 193 of this Code, shall be taxable by the income tax at the source of payment at the rate, established by Article 194 of this Code.
      2-1. The authorized state and local executive bodies which perform the state regulation within the competence in the sphere of subsoil use in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use, shall submit to an authorized body the information on purchase and sale of the securities, participation shares, specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article with reflection of:
      1) an identification number and (or) its analogue in the state of residence and the name of a legal entity and (or) last name, name, patronymic (if there is one) of an individual, who realizes and purchases the specified shares (participation shares);
      2) the costs of purchase of the specified shares (participation shares);
      3) the dates of payment of the income on the transaction;
      4) the information on the past performance of a purchaser, including the list of states where he/she performed his/her activity for the last three years preceding the year of the transaction;
      5) the information about affiliation of a person, who realizes property with other persons (the amount of direct or indirect participation).
      2-2. An authorized body shall be obliged within three working days from the date of receipt of the information from the authorized state and local executive bodies, performing the state regulation activity within the competence in the sphere of subsoil use in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use, to send them to the tax body at the place of a legal entity which has the right for subsoil use in the Republic of Kazakhstan, specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of Article 197 of this Code with simultaneous notification of a directly subordinate vertical tax body.
      3. A tax body, at the place of a legal entity which has the right for subsurface use in the Republic of Kazakhstan within five working days from the date of receipt of the information, specified in paragraph 2-1 of this Article, shall be obliged to send the information to this legal entity on a purchaser of shares (participation shares) and on the cost of these shares (participation shares).
      4. A person who realizes shares, participation shares, and real estate shall be obliged to submit to a purchaser - a tax agent a copy of the document, confirming the cost of the purchase (deposit).
      In case if the document, confirming the cost of purchase (deposit) is not submitted to a tax agent, the cost of realization shall be taxable by the income tax at the source of payment.
      5. The obligation and responsibility to calculate, withhold and transfer the income tax at the source of payment to the budget shall be entrusted to a person who pays income, including a nonresident, regardless that the nonresident has or does not have a permanent establishment in the Republic of Kazakhstan. This person shall be recognized as a tax agent.
      6. The nonresident who is a tax agent shall be subjected to registration as a taxpayer in a tax body in the order, established by Article 562 of this Code.
      7. The income tax at the source of payment shall be withheld by a tax agent at the moment of payment of the income to a nonresident regardless of the form and the place of the income payment.
      8. Transfer of the amount of the income tax shall be performed by a tax agent within the period, specified in Article 195 of this Code.
      A tax reporting on the income tax, withheld at the source of payment from the income of nonresidents, shall be submitted by a tax agent to a tax body at the place of its registration in the Republic of Kazakhstan within the periods, established by Articles 196 and 203 of this Code.
      9. The income tax can be paid from the funds of a tax agent by a resident legal entity which is a subsoil user. At that, the income tax shall be transferrable to the budget by this resident legal entity no later than twenty-five calendar days after the end of the month, in which the amount of the income tax was received from the tax agent. A tax reporting on the income tax, withheld at the source of payment from the income of a nonresident shall be submitted by this resident legal entity no later than the 15th of the second month following the quarter, in which the amount of the income tax was received from the tax agent, to a tax body at the location of the resident legal entity in the Republic of Kazakhstan.
      The amount of the income tax, transferred by a tax agent to a resident legal entity which is the subsoil user, specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article, shall not be recognized as the income of this resident legal entity.
      10. In case if a tax agent does not apply the provisions of paragraphs 8 and 9 of this Article, a resident legal entity who is a subsoil user shall have the right at its own expense to make personally payment of the income tax from the income, coming from increase of the cost for a nonresident no later than twenty five calendar days after the end of the month, in which the information, specified in paragraph 3 of this Article was received.
      The resident legal entity specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article shall be obliged to submit the tax reporting on the income tax, withheld at the source of payment from income of a nonresident to a tax body at its location no later than the 15th of the second month following the quarter, in which the information, specified in paragraph 3 of this Article was received, when paying the income tax in accordance with this paragraph.
      At that, the amount of the tax, paid for a nonresident shall not be deductible when determining the taxable income of a legal entity which is a subsoil user.
      11. In case that a tax agent, a resident legal entity, which is the subsoil user, specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article, the provisions of paragraphs 7, 8, 9 and 10 of this Article, fulfillment of this obligation shall be entrusted to the resident legal entity, which is the subsoil user, in the order, established by Articles 85 and 86 of this Code.
      12. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 197 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2009); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 24. THE ORDER OF TAXATION OF INCOME OF NONRESIDENT LEGAL ENTITIES WHICH PERFORM THE ACTIVITY IN THE REPUBLIC OF KAZAKHSTAN THROUGH A PERMANENT ESTABLISHMENT

Article 198. Determination of the taxable income

      1. Unless otherwise provided by this Article and Article 200 of this Code, determination of the taxable income, calculation and payment of the corporate income tax from the income of a nonresident legal entity, coming from the activity in the Republic of Kazakhstan through a permanent establishment, shall be performed in accordance with the provisions of this Article and Articles 83 - 149 of this Code.
      1-1. A nonresident legal entity, operating in the Republic of Kazakhstan through a permanent establishment, shall reduce the amount of the corporate income tax, calculated in accordance with Articles 139 and 199 of this Code, by 100 percent when determining the amount of the corporate income tax, payable to the budget in case, if the following income makes no less than 90 percent of the received income in the total annual income of this nonresident legal entity:
      1) the income from execution of works, provision of services to the autonomous education institutions, specified in sub-paragraphs 2) and 3) of paragraph 1 of Article 135-1 of this Code;
      2) the income from execution of works, provision of services to the autonomous education institutions, specified in sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code on thes of activities, determined by sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code.
      2. The followings of income, which is connected with the activity of a permanent establishment and which is received (receivable) from the date of the beginning of the activity in the Republic of Kazakhstan, make the total annual income of a nonresident legal entity, coming from the activity in the Republic of Kazakhstan through a permanent establishment:
      1) the income from the sources in the Republic of Kazakhstan, provided by paragraph 1 of Article 192 of this Code;
      2) the income, specified in paragraph 1 of Article 85 of this Code which are not included in sub-paragraph 1) of this paragraph;
      3) the income which is received by the permanent establishment of the nonresident legal entity from the sources outside the Republic of Kazakhstan, including those through employees or other employed personnel;
      4) the income of a nonresident legal entity, including the income of its structural units in other states, received from the activity in the Republic of Kazakhstan which is identical or similar to the one, performed through the permanent establishment of this nonresident legal entity in the Republic of Kazakhstan.
      3. In case, if a nonresident carries out the entrepreneurial activity in the Republic of Kazakhstan and outside the Republic within one or connected projects, performed together with its permanent establishment in the Republic of Kazakhstan, the income of this permanent establishment is the income, which it could receive, if it was an independent and separate legal entity, engaged in the same or identical activity with the same or similar conditions and which operated independently regardless of a nonresident legal entity, the permanent establishment of which it is.
      For the purposes of application of this paragraph, the income of a permanent establishment shall be determined, taking into account the norms of the legislation of the Republic of Kazakhstan on Transfer Pricing.
      4. If the goods, produced by a permanent establishment of a nonresident legal entity in the Republic of Kazakhstan, are realized by other structural unit of the nonresident legal entity, located outside the Republic of Kazakhstan, the income of this permanent establishment of the nonresident legal entity is the income, which it could receive, if it was an independent and separate legal entity, engaged in the same or identical activity with the same or similar conditions and which operated independently regardless of a nonresident legal entity, the permanent establishment of which it is.
      For the purposes of application of this paragraph, the income of a permanent establishment shall be determined, taking into account the norms of the legislation of the Republic of Kazakhstan on Transfer Pricing.
      5. The expenses, connected with receiving income from the activity in the Republic of Kazakhstan through a permanent establishment, shall be deducted regardless of that they were incurred in the Republic of Kazakhstan or outside the republic, except for the expenses, subjected to deduction in accordance with this Code.
      6. A nonresident legal entity shall not have the right to deduce the amounts of a permanent establishment, presented to the permanent establishment as:
      1) the royalties, honorariums, duties and other payments for use or provision of the right to use property or intellectual property of this nonresident legal entity;
      2) the income for services provided by the nonresident legal entity to its permanent establishment;
      3) the remunerations for loans provided by this nonresident legal entity to its permanent establishment;
      4) the expenses which are not related to receiving income from the activity of the nonresident legal entity through a permanent establishment in the Republic of Kazakhstan;
      5) the documentarily unconfirmed expenses;
      6) management and general administrative expenses of the nonresident legal entity, specified in paragraph 2 of Article 208 of this Code which are not incurred in the territory of the Republic of Kazakhstan.
      Footnote. Article 198 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (the order of enforcement see Article 9).

Article 199. The order of the net income taxation

      1.The net income of a nonresident legal entity from the activity in the Republic of Kazakhstan through a permanent establishment shall be taxable by the corporate income tax on the net income at the rate of 15 percent.
      The net income shall be determined in the following order:
      the taxable income, reduced by the amount of the income and the expenses, provided by Article 133 of this Code, and by the amount of the losses, postponed in accordance with Article 137 of this Code,
      minus
      the amount of the corporate income tax, calculated via the product of the rate, established by paragraph 1 or paragraph 2 of Article 147 of this Code and the taxable income, reduced by the amount of the income and the expenses, provided by Article 133 of this Code, and by the amount of the losses, postponed in accordance with Article 137 of this Code.
      1. The calculated amount of the corporate income tax on the net income shall be reflected in the declaration for the corporate income tax.
      2. A nonresident legal entity shall be obliged to pay the corporate income tax on the net income from the activity through a permanent establishment within ten calendar days after the deadline, established for submission of the declaration for the corporate income tax.
      Footnote. Article 199 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 200. The order of taxation of income in certain cases

      1. In case if a nonresident legal entity in the territory of the Republic of Kazakhstan has more than one permanent establishment, the nonresident shall have the right to pay the corporate income tax in an aggregate for a group of the permanent establishments of this nonresident legal entity through one of its permanent establishments.
      At that, the nonresident legal entity shall be obliged no later than the 31st of December of the year preceding the reporting tax period to notify in writing:
      1) an authorized body about which of the permanent establishments will perform calculation and payment of the corporate income tax;
      2) the tax bodies at the location of the permanent establishments - that the chosen permanent establishment will pay the tax to the budget for all its permanent establishments.
      In this case, the amount of the corporate income tax payable to the budget shall be calculated from an aggregate of the taxable income of the permanent establishments of a nonresident legal entity, located in the Republic of Kazakhstan.
      At that, the chosen permanent establishment at the location shall be obliged to submit the general declaration of the corporate income tax for a whole group of these permanent establishments of the nonresident legal entity.
      2. A tax agent who pays the income, specified in sub-paragraph 2) of paragraph 1 of Article 192, sub-paragraph 4) of paragraph 2 and paragraph 3 of Article 198 of this Code, shall calculate, withhold and transfer the corporate income tax from the specified income without deductions at the rate, established by sub-paragraph 1) of Article 194 of this Code under the following conditions:
      1) the absence of a contract, concluded with an affiliate, representation office of a nonresident legal entity, nonresident legal entity operating in the Republic of Kazakhstan through a permanent establishment without opening an affiliate, representative office;
      2) the absence of an invoice on the realized goods, works, services, written out by an affiliate, representative office, permanent establishment of a nonresident legal entity without opening an affiliate, representative office.
      The corporate income tax at the source of payment, withheld by a tax agent from the income of a nonresident legal entity shall be set off for repayment of the tax obligations of a permanent establishment of this nonresident legal entity.
      At that, the nonresident legal entity, operating in the Republic of Kazakhstan through a permanent establishment, shall calculate the corporate income tax in a retrospective manner, in accordance with Articles 198 and 199 of this Code, starting with the date of formation of the permanent establishment and shall submit the declaration for the corporate income tax to a tax body at the location of the permanent establishment with the inclusion of the specified income.
      The amount of the corporate income tax, calculated by a nonresident legal entity operating in the Republic of Kazakhstan through a permanent establishment, shall be reduced by the amount of the corporate income tax, withheld at the source of payment from the income of this nonresident legal entity in accordance with this paragraph. The reduction shall be performed if the documents, confirming withholding the tax by a tax agent are presented.
      The positive disparity between the amount of the corporate income tax, withheld at the source of payment from the income of a nonresident legal entity in accordance with this paragraph and the amount of the corporate income tax, calculated by the nonresident legal entity working in the Republic of Kazakhstan through a permanent establishment, shall be postponed for the next ten tax periods inclusively and shall consequently reduce the amounts of the corporate income tax of these tax periods which are payable to the budget.
      3. The income of a nonresident legal entity, which is not registered in the tax bodies as a taxpayer in violation of article 562 of this Code, received from the activity in the Republic of Kazakhstan through a permanent establishment, shall be taxable by the corporate income tax at the source of payment without deductions at the rate, established by sub-paragraph 1) of Article 194 of this Code.
      A nonresident legal entity, operating through a permanent establishment, is registered in the tax bodies as a taxpayer with violation of the deadlines, established by Article 562 of this Code, shall be obliged to reflect the taxation objects and the objects, related to taxation, which appeared for the period from the date of formation of the permanent establishment to the date of its registration in a tax body, in the primary declarations for the appropriates of taxes, to calculate and to pay taxes, except for the tax obligations of a tax agent.
      At that, the amount of the corporate income tax, calculated by this nonresident legal entity for the period from the date of formation of the permanent establishment to the date of its registration in a tax body, shall be reduced by the amount of the corporate income tax, withheld at the source of payment in accordance with this paragraph from the income of this nonresident legal entity for the specified period.
      The reduction shall be performed if the documents, confirming withholding of the tax by a tax agent are provided.
      Footnote. Article 200 is in the wording of the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 25. THE ORDER OF TAXATION OF INCOME OF NONRESIDENT INDIVIDUALS

Article 200-1. Income of a nonresident individual which is not taxable

      1. The following income of a nonresident individual shall not be taxable:
      1) The remunerations, paid by the nonresident individuals for their contributions in banks and organizations, performing certains of banking operations on the basis of the license of the national Bank of the Republic of Kazakhstan;
      2) The payments, connected with supply of goods to the territory of the Republic of Kazakhstan within the foreign trade activities, except for the services, provided in the territory of the Republic of Kazakhstan, connected with a contract on these foreign trade activities;
      3) the amounts of accumulated (distributed) remunerations for the debt securities in their purchase, paid by the resident customers;
      4) the dividends, except for those, specified in sub-paragraph 4) of paragraph 1 of Article 192 of this Code under simultaneous fulfillment of the following conditions:
      a taxpayer shall possess the shares and participation shares, on which the dividends are paid, for more than three years on the date of distribution of the dividends;
      a legal entity which pays the dividends shall not be a subsoil user during the period, for which the dividends are paid;
      more than 50 percent of the cost of assets of a legal entity, which pays the dividends on the date of payment of the dividends, makes the property of the persons (a person), who are (is) not subsoil users (a subsoil user).
      The provisions of this paragraph shall be applied to the dividends only, received from a resident legal entity in the form of:
      The income, payable for the shares, including the shares which are the basic assets of depository receipts;
      a part of the net income, distributed by a legal entity among its founders, participants;
      the income, coming from distribution of property when liquidating a legal entity or when reducing the authorized capital by the proportional reduction of the amounts of the shares of founders, participants or by full or partial repayment of the shares of founders, participants, and when a founder, participant withdraws a share of participation in the legal entity, except for the property, transferred by the founder, participant in the authorized capital in the form of contribution.
      At that, a share of the property of the persons (a person), who are (is) subsoil users (a subsoil user), in the cost of the assets of the legal entity, which pays the dividends, shall be determined in accordance with Article 197 of this Code;
      5) the income, coming from shares of open mutual investment funds in their redemption by the management company of this fund;
      6) the dividends and remunerations for the securities, which are on the official list of the Stock Exchange, operating in the Republic of Kazakhstan, on the date of distribution of these dividends and remunerations;
      7) the remunerations for the government-issued securities, agency bonds and income from increase of the cost when undertaking the realization of the government-issued securities, agency bonds;
      8) the income from increase of the cost in realizing the shares, issued by a legal entity, or the shares of participation in a legal entity or a consortium, specified in sub-paragraph 5) of paragraph 1 of Article 192 of this Code, except for those, specified in sub-paragraph 4) of Article 192 of this Code, unless otherwise provided by sub-paragraph 9) of this paragraph, under simultaneous fulfillment of the following conditions:
      a taxpayer shall possess these shares or participation shares for more than three years on the date of realization of the shares or participation shares;
      a legal entity - issuer or a legal entity, a share of participation in which is realized, or a participant of a consortium which realizes a share of participation in this consortium which is not a subsoil user;
      more than 50 percent of the cost of the assets of the legal entity - issuer or the legal entity, a share of participation in which is realized, or the total cost of the assets of participants of the consortium, a share of participation in which is realized, on the date of this realization makes property of the persons (a person), who are (is) not subsoil users (a subsoil user);
      9) the income from increase of the cost when realizing the securities using the open trading method, which are on the date of this realization on the official list of the Stock Exchange, operating in the Republic of Kazakhstan, or a foreign stock exchange;
      10) the income, coming from execution of works, provision of services outside the Republic of Kazakhstan, except for the income, specified in sub-paragraphs 3) and 4) of paragraph 1 of Article 192 of this Code;
      11) the income from an investment deposit, placed in an Islamic bank;
      12) the payments which are made from a grant within an intergovernmental agreement, a participant of which is the Republic of Kazakhstan, aimed at support (assistance) of low-income citizens in the Republic of Kazakhstan;
      13) a material gain in the form of the following expenses, actually produced by the autonomous education institution, specified on paragraph 1 of Article 165-1 of this Code in respect of a nonresident individual who is an employee of this institution or who performs the activity in the Republic of Kazakhstan on executions of works, provision of services to this organization for:
      accommodation;
      medical insurance;
      air travel from the place of residence outside the Republic of Kazakhstan to the place of work in the Republic of Kazakhstan and back.
      Footnote. The Chapter 25 is supplemented with Article 200-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 201. The order of calculation, withholding and transfer of the individual income tax at the source of payment

      1. Income of a nonresident individual, determined by paragraph 1 of Article 192 of this Code, shall be taxable by the individual income tax at the source of income at the rates, specified in Article 194 of this Code without tax deductions, unless otherwise provided by this Article.
      Calculation and withholding of the individual income tax on the income which is taxable at the source of payment, shall be performed by a tax agent no later than the date of payment of the income of a nonresident individual.
      The amount of income, taxable at the source of payment, shall be converted into tenge using the market exchange rate on the date of payment of the income when paying the income in a foreign currency.
      Transfer of the individual income tax from the income of a nonresident individual to the budget shall be performed by a tax agent at the place of its location before the 25th of the month, following the month, in which the tax is withheld in accordance with this paragraph.
      1-1. For the purposes of this Article, the increase of the cost when undertaking the realization of the securities, participation shares shall be determined in accordance with Article 87 of this Code.
      2. Calculation, withholding and transfer of the individual income tax at the source of payment to the budget from the income of a nonresident individual, specified in paragraph 1 of Article 197 of this Code, except for the income, specified in sub-paragraphs 9), 10) of paragraph 1 of Article 200-1 of this Code, shall be performed in accordance with Article 197 of this Code despite of the provisions of this Article.
      3. Calculation of the individual income tax, withheld at the source of payment shall be performed by a tax agent via applying of the rate, specified by paragraph 1 of Article 158 of this Code to the amount of the income taxable at the source of payment, determined by sub-paragraphs 18), 19), 20), 21) and 22) of paragraph 1 of Article 192 of this Code, including the income, determined by paragraph 2 of Article 163 of this Code, taking into account the provision of paragraph 3 of Article 155 of this Code, without tax deductions.
      The individual income tax at the source of payment shall be withheld by a tax agent no later than the date of payment of the income to a nonresident individual, except for the case, specified in paragraph 5 of this Article.
      A tax agent shall be obliged to transfer the amounts of the individual income tax, withheld at the source of payment within the deadlines, established by Article 161 of this Code.
      4. The individual income tax at the source of payment shall be withheld by a tax agent regardless of the form and the place of payment of the income to the nonresident individual.
      5. When the foreign personnel is provided by a nonresident, the activity of which does not form a permanent establishment in the Republic of Kazakhstan in accordance with paragraph 7 of Article 191 of this Code, the income of this foreign personnel, coming from the activity in the Republic of Kazakhstan, shall be taxable by the individual income tax at the source of payment..
      At that, an object of taxation by the individual income tax is the income of the nonresident individuals, including other material gains, received by this personnel in connection with the activity in the Republic of Kazakhstan.
      In case if the income is paid to a personnel provided by a nonresident, the tax base shall be determined by a tax agent on the basis of the documents, submitted by the nonresident in accordance with paragraph 7 of Article 191 of this Code, for the purposes of calculation of the individual income tax.
      Withholding of the individual income tax at the source of payment from the income of foreign personnel shall be performed by a tax agent when paying the income to a nonresident legal entity for provision of the foreign personnel.
      Calculation of the individual income tax withheld at the source of payment shall be performed by a tax agent by applying the rate, specified by paragraph 1 of Article 158 of this Code to the amount of the income of the foreign personnel, determined in accordance with this paragraph, taking into account the provisions of paragraph 3 of Article 155 of this Code without tax deductions.
      A tax agent shall be obliged to transfer the amount of the individual income tax, withheld at the source of payment within the deadlines, defined by Article 161 of this Code.
      6. The obligation and responsibility to calculate, withhold and transfer the individual income tax at the source of payment to the budget shall be entrusted to the following persons, who pay income to a nonresident and who are recognized as the tax agents:
      1) an individual entrepreneur;
      2) a nonresident legal entity operating in the Republic of Kazakhstan through an affiliate, representative office, in case if the affiliate, representative office does not form a permanent establishment in accordance with an international agreement on double taxation avoidance or paragraph 4 of Article 191 of this Code;
      3) a legal entity, including a nonresident operating in the Republic of Kazakhstan through a permanent establishment.
      At that, the nonresident legal entity shall be recognized as a tax agent from the date of registration of an affiliate, representative office or a permanent establishment in the tax bodies in the Republic of Kazakhstan.
      For the purposes of this Chapter, a resident legal entity shall have the right by its decision to recognize its structural unit on the income, which is taxable at the source of payment and which are paid (payable) by this structural unit in the order, provided by Article 161 of this Code, as a tax agent on the individual income tax, withheld at the source of payment;
      4) a legal entity, including a nonresident, operating in the Republic of Kazakhstan through a permanent establishment, to which a foreign personnel was provided by the nonresident, the activity of which does not form a permanent establishment in accordance with the provisions of paragraph 7 of Article 191 of this Code;
      5) a resident - issuer of the underlying asset of depository receipts;
      6) a nonresident legal entity, except for those, specified in sub-paragraphs 2), 3) and 4) of paragraph 6 of this Article, which purchases securities, participation shares, in case of non-fulfillment of the conditions, established by sub-paragraph 8) of paragraph 1 of Article 200-1 of this Code.
      7. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      8. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      9. The obligation of a tax agent to withhold and transfer the individual income tax at the source of payment shall be recognized as fulfilled when the tax agent pays the amount of the individual income tax, calculated from the income of a nonresident in accordance with the provisions of this Code from its own funds without withholding it.
      Footnote. Article 201 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 19.03.2010 No. 258-IV (shall be enforced from 01.01.2009 and operate until 01.01.2016); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 202. The order of taxation of income of foreign employees of a nonresident legal entity which does not have a permanent establishment in the Republic of Kazakhstan

      1. The provisions of this Article shall be applied to taxation of the income of the foreigners and stateless persons, who are the employees of a nonresident legal entity, which does not have a permanent establishment in the Republic of Kazakhstan, determined by sub-paragraphs 18), 20), 21) of paragraph 1 of Article 192 of this Code, including the income, determined by Article 163 of this Code, unless otherwise provided by paragraph 5 of Article 201 of this Code. At that, the provision of this Article shall be applied under simultaneous fulfillment of the following conditions:
      1) a foreigner or a stateless person is an employee of the nonresident legal entity which does not have a permanent establishment in the Republic of Kazakhstan;
      2) a foreigner or a stateless person shall be recognized as a permanently staying in the Republic of Kazakhstan for the current tax period in accordance with paragraph 2 of Article 189 of this Code.
      In case if a foreigner or a stateless person is not recognized as a permanently staying in the Republic of Kazakhstan for the current tax period, the income of this person, specified in sub-paragraphs 18), 20), 21) of paragraph1 of Article 192 of this Code, including the expenses, specified in Article 163 of this Code, shall not be taxable.
      2. The obligation and responsibility to calculate, withhold and transfer the individual income tax at the source of payment to the budget from the income of the foreigner or the stateless person, specified in paragraph 1 of this Article, shall be entrusted to a legal entity (including a nonresident working through a permanent establishment), in favor of which the nonresident legal entity executed works, provided services. This legal entity shall be recognized as a tax agent.
      3. Calculation of the individual income tax shall be performed from the income of a foreigner or a stateless person, specified in a labor agreement (contract), concluded between the foreigner or the stateless person and a nonresident legal entity without tax deductions at the rate, established by Article 158 of this Code. At that, the nonresident legal entity shall be obliged to submit to a tax agent the notarized copies of the individual employment agreements (contracts), concluded with the foreigners or the stateless persons, who were sent on a working trip to the Republic of Kazakhstan.
      4. The individual income tax at the source of payment shall be calculated and withheld by a tax agent no later than the date of payment of the income to a nonresident legal entity regardless of the form or the place of the income payment.
      5. Transfer of the individual income tax from the income of a foreigner or a stateless person to the budget shall be performed by a tax agent at its location before the 25th of the month, following the month, in which the tax is subjected to withholding in accordance with paragraph 4 of this Article.
      Footnote. Article 202 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 203. Submission of a declaration for the individual income tax and the social tax on the foreigners and stateless persons

      Footnote. The title as amended by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).
      The declaration for the individual income tax and the social tax on the foreigners and stateless persons shall be submitted by a tax agent to a tax body at the place of payment of the tax quarterly no later than the 15th of the second month, following the quarter, in which the reporting tax periods are included.
      Footnote. Article 203 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 204. The order of taxation of income of a nonresident individual in certain cases

      1. The provisions of this Article shall be applied to the income of a nonresident individual, received from the sources in the Republic of Kazakhstan from the persons who are not the tax agents in accordance with the provisions of this Code.
      2. Calculation of the individual income tax from the income of a nonresident individual, specified in paragraph 1 of this Article, shall be performed by applying the rate, established by Article 194 of this Code, to the calculated amount of the income without tax deductions.
      3. Payment of the individual income tax shall be personally performed by a nonresident individual no later than ten calendar days from the deadline, established for submission of the declaration for the individual income tax for a tax period.
      4. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 204 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 205. Submission of a declaration for the individual income tax

      Unless otherwise provided by this Article, a declaration for the individual income tax shall be submitted to a tax body at the place of a taxpayer’s staying (residence) no later than the 31st of March of the year, following the reporting tax period by a nonresident individual, who receives income from the sources in the Republic of Kazakhstan, which is not taxable by the individual income tax at the source of payment in accordance with this Code.
      In case of departure outside the Republic of Kazakhstan during the current tax period without further entry into the territory of the Republic of Kazakhstan before the 31st of March of the year, following the current tax period, a nonresident individual shall have the right to submit the declaration for the individual income tax and to pay the individual income tax during the current tax period. At that, the declaration for the individual income tax shall be submitted for the period from the beginning of a tax period to the date of the departure of this person outside the Republic of Kazakhstan.
      Footnote. Article 205 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 26. THE SPECIAL REGULATION ON INTERNATIONAL AGREEMENTS

Article 206. Conditions of appliance of an international agreement

      1. The regulations of an international agreement on avoidance of double taxation and prevention of evasion of income (capital) and property taxation, one party of which is the Republic of Kazakhstan (for the purposes of this Article and Article 27 of this Code, hereinafter - the international agreement), shall be applied to the persons, who are residents of one or both states, which concluded this agreement.
      2. The regulations of paragraph 1 of this Article shall not be applied to a resident of the state, with which an international agreement was concluded, if this resident uses the regulations of the international agreement in the interests of another person, who is not a resident of the state with which the international agreement was concluded. 

Article 207. The order of application of the international agreements

      Application of the regulations of the international agreements shall be performed in the order, established by this Code and in accordance with an international agreement.

Article 208. Methods of deduction of management and general administrative expenses of a nonresident legal entity for the purposes of taxation of the income, coming from the sources in the republic of Kazakhstan

      1. In case, if the regulations of an international agreement, when determining the taxable income of a nonresident legal entity from the activity in the Republic of Kazakhstan through a permanent establishment, allow deduction of management and general administrative expenses actually incurred in the Republic of Kazakhstan and outside the Republic for the purposes to receive this income, the amount of these expenses shall be determined by one of the following methods:
      1) the method of proportional distribution of expenses;
      2) the method of immediate (direct) deduction of expenses.
      At that, deduction of the specified expenses is allowed when a nonresident legal entity has the document, confirming the residency, corresponding with the requirements of paragraph 4 of Article 219 of this Code.
      2. Management and general administrative expenses - are the expenses related to the management of an organization, salaries of the management personnel, not related to the production process.
      3. A nonresident legal entity shall apply only one of the specified methods of deduction of management and general administrative expenses by its choice. The applied method must not be changed during the reporting tax period.
      4. The chosen method of deductions of management and general administrative expenses to a permanent establishment (including the order of calculation of the calculated index which is used in the method of proportional distribution of expenses) shall be annually applied and can be changed only by agreement with a tax body, which is a superior towards a tax body at the location of the permanent establishment (except for an authorized body), before the beginning of the reporting tax period.
      5. A nonresident legal entity does not have the right to simultaneously apply two methods of deduction of management and general administrative expenses within the reporting tax period.
      6. The appropriate attachment to the declaration for the corporate income tax, submitted by a nonresident to a tax body at the location of a permanent establishment, shall be filled in order to calculate the specified expenses which are attributed to deduction.
      7. Management or general administrative expenses shall be deducted by a permanent establishment in the Republic of Kazakhstan only when it has the following confirming documents and their translations into Kazakh or Russian languages:
      1) a notarized copy of a document, confirming the residency, meeting the requirements of paragraphs 4 and 5 of Article 219 of this Code;
      2) a copy of the financial reporting of the permanent establishment of a taxpayer in the Republic of Kazakhstan;
      3) a copy of the financial reporting of a nonresident legal entity, composed in accordance with the requirements of the legislation of a state, in which this legal entity was created and (or) a resident of which it is;
      4) a copy of an audit report on the audit of the financial reporting of a nonresident legal entity (when performing the audit of the financial reporting of this legal entity).
      At that, the financial reporting, specified in sub-paragraphs 2) and 3) of this paragraph, shall reveal the following data depending on the method of determining the calculated index:
      1) the total aggregate annual income in general;
      2) the total labor costs of personnel in general;
      3) the primary (current) and the balance cost of the fixed assets in general;
      4) excluded by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010).
      8. The enumeration of management and general administrative expenses of a nonresident legal entity which are deductible by a permanent establishment in the Republic of Kazakhstan and the method of their distribution between the nonresident legal entity and its permanent establishment (establishments) shall be approved in the tax accounting policy of the nonresident legal entity.
      9. A nonresident legal entity shall be obliged to submit a notarized copy of the document, confirming the residency, to a tax body within the deadlines, established for submission of the declaration for the corporate income tax. The free-form composed calculation of the amount of expenses, attributable to deductions by the permanent establishment in the Republic of Kazakhstan is submitted, when the method of proportional distribution is applied.
      The documents, specified in paragraph 7 of this Article, except for the one specified in sub-paragraph 1) of the first part of paragraph 7 of this Article, shall be submitted by a nonresident to a tax body at its request.
      10. In case, if the financial reporting is composed in a foreign language, a taxpayer shall be obliged to attach to it its translation into Kazakh or Russian languages, notarized in the order, established by the legislation of the Republic of Kazakhstan.
      11. In case that the financial reporting does not reflect the amount of the management and general administrative expenses, which are subjected to distribution and in case of non-fulfillment of the conditions, established by this Article, these expenses shall not be accepted to deduction by a permanent establishment.
      Footnote. Article 208 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 209. The method of proportional distribution of expenses

      1. When the method of proportional distribution is used, the amount of the management and general administrative expenses, specified in paragraph 2 of Article 208 of this Code, which are attributable to deductions by a permanent establishment, shall be determined as the product of the amount of these expenses and the calculation index.
      2. The calculation index shall be calculated by using one of the following methods chosen by a nonresident legal entity:
      1) the ratio of the amount of the total annual income, received by a nonresident legal entity from the activity in the Republic of Kazakhstan through a permanent establishment for the reporting tax period to the total amount of the total annual income of the nonresident legal entity in general for the specified tax period;
      2) determination of the average quantity (AQ) by three indexes:
      the ratio of the amount of the total annual income, received by a nonresident legal entity from the activity in the Republic of Kazakhstan through a permanent establishment for the reporting tax period to the amount of the total annual income of the nonresident legal entity in general for the specified tax period (I);
      the ratio of the primary (current) cost of underlying means, accounted in the financial reporting of a permanent establishment in the Republic of Kazakhstan as of the end of the reporting tax period to the total primary (current) cost of the underlying means of a nonresident legal entity in general for the same tax period (UM);
      the ratio of the amount of expenses for labor costs of personnel, working in a permanent establishment in the Republic of Kazakhstan as of the end of the reporting tax period to the total amount of expenses for the labor costs of the personnel of a nonresident legal entity in general for the same tax period (LC).
      The average quantity shall be determined by the formula:
      AQ = (I + UM + LC) .
                3

Article 210. Specifics of calculation of the calculation index when using the method of proportional distribution of expenses in certain cases

      1. In case of discrepancy of duration of tax periods in the Republic of Kazakhstan and in the state of residency of a taxpayer or discrepancy of the dates of the beginning and the end of tax periods in the Republic of Kazakhstan and in the state of residency of the taxpayer in an equal duration of the specified tax periods, the taxpayer shall be obliged to adjust the data of the financial reporting of a nonresident legal entity in the state of residency, used in calculating the amount of the management and general administrative expenses, subjected to deductions to a permanent establishment.
      The ad justment factor (F) whichs a tax period of a taxpayer in the state of residency with the tax period in the Republic of Kazakhstan shall be applied for adjusting the date of a financial reporting of the taxpayer in the state of residency.
      2. The factor (F) shall be determined as the ratio of the number of months of a tax period of a taxpayer in the state of residency which are included in the scope of the tax period in the Republic of Kazakhstan to the number of months of the tax period of the taxpayer in the state of residency.
      In case if two tax periods of a taxpayer in the state of residency are fully or partially included in the scope of a tax period in the Republic of Kazakhstan, the two factors (F1, F2) shall be applied.
      3. The data of the financial reporting of a taxpayer in the state of residency shall be adjusted as follows:
      F1*FR (SR)1 + K2*FR(SR)2,
      where F1 = TP(SR)1 / TP(SR)3; F1 = TP(SR)2 / TP(SR)3,
      at that:
      TP(SR)1 - is the number of months of one tax period of a taxpayer in the state of residency which are included in the scope of a tax period in the Republic of Kazakhstan;
      TP(SR)2 - is the number of months of other tax period of a taxpayer in the state of residency, which are included in the scope of a tax period in the Republic of Kazakhstan;
      TP(SR)3 - is the total number of months of a tax period of a taxpayer in the state of residency;
      FR(SR)1 - is the financial reporting of a taxpayer in the state of residency for one tax period of the taxpayer in the state of residency which are included in the scope of a tax period in the Republic of Kazakhstan;
      FR(SR)2 - is the financial reporting of a taxpayer in the state of residency for another tax period of the taxpayer in the state of residency which are included in the scope of a tax period in the Republic of Kazakhstan.

Article 211. The method of immediate (direct) deductions of expenses

      1. The method of immediate (direct) deductions of the management or general administrative expenses of a nonresident shall be used in case if a nonresident legal entity introduces the separate accounting of the income and expenses (including management or general administrative expenses) of the head office and its permanent establishments, located in the Republic of Kazakhstan and outside the Republic.
      2. The management or general administrative expenses shall be deducted by a permanent establishment in the Republic of Kazakhstan, if they are determinable and immediately incurred for the purposes of receiving income from the activity in the Republic of Kazakhstan through a permanent establishment.
      3. The specified expenses shall be deducted by a permanent establishment only if the confirming documents and their translation into Kazakh or Russian languages are provided.
      4. The confirming documents are:
      1) the primary accounting documents which confirm expenses, incurred by a nonresident legal entity in the territory of the Republic of Kazakhstan for the purposes of receiving income from the activity through a permanent establishment;
      2) the copies of the primary accounting documents which confirm expenses, incurred by a nonresident legal entity outside the Republic of Kazakhstan for the purposes of receiving income from the activity in the Republic of Kazakhstan through a permanent establishment;
      3) the notarized copy of the document which confirms the residency and which corresponds with the requirements of the paragraphs 4 and 5 of the Article 219 of this Code;
      4) the tax registers on accounting expenses, which are incurred by a nonresident legal entity outside the Republic of Kazakhstan, composed on the basis of the primary accounting documents, confirming these expenses.
      The form of a register on accounting expenses, incurred by a nonresident legal entity outside the Republic of Kazakhstan, the order of its completion shall be approved in the tax accounting policy of a nonresident legal entity.
      Footnote. Article 211 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012). 

Article 212. The order of application of an international agreement regarding full exemption from taxation of income of a nonresident, received from the sources in the Republic of Kazakhstan

      1. A tax agent shall have the right to independently apply exemption from taxation when paying an income to a nonresident or when deducting the distributed but not paid income of a nonresident, if this nonresident is a resident of the state, with which an international agreement is concluded.
      2. The order of application of the regulations of an international agreement, established by this Article, shall be applied to taxation of the income of a nonresident, provided by Article 192 of this Code, except for the income, towards which the order of application of the regulations of an international agreement is established by Article 212-1, 212-2, 213, 214 and 215 of this Code, and the income, determined by Article 197 of this Code.
      3. An international agreement shall be applied if a nonresident submits to a tax agent the document, which confirms the residency and which corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code,.
      At that, the document, which confirms the residency, shall be submitted by the nonresident to a tax agent no later than one of the following dates, which comes first, except for the case, specified in paragraph 2 of this Article:
      1) the 31st of December of the calendar year, in which payment of the income was made to the nonresident or the unpaid income of a nonresident was deducted;
      2) the beginning of a scheduled tax audit of the quarter, in which the income of the nonresident was paid and which ends in the calendar year, in which this tax audit took place on tax obligation for the income tax, withheld at the source of payment;
      3) no later than five working days before completion of a unplanned tax audit of the quarter, in which the income of the nonresident was paid and which ends in the calendar year, in which this tax audit took place on the tax obligation for the income tax, withheld at the source of payment. The date of completion of the unplanned tax audit shall be determined in accordance with an instruction.
      4. In case, if a nonresident provides services or executes works in the territory of the Republic of Kazakhstan within the period, which does not lead to formation of a permanent establishment in the Republic of Kazakhstan, for the purposes of application of the regulation of an international agreement, a nonresident legal entity shall submit to a tax agent the notarized copies of the founding documents or extracts from the trade register (register of shareholders or another similar document, provided, by the legislation of the state, in which the nonresident was registered), indicating founders (participants) and majority of the shareholders of the nonresident legal entity along with the document, specified in sub-paragraph 3 of this Article.
      The tax agent shall determine the fact of formation of a permanent establishment by a nonresident as a result of provision of services or execution of works within an agreement (contract) and the related projects if there are any on the basis of the submitted documents and the agreement (contract) on provision of services or execution of works.
      A tax agent shall not have the right to apply the regulations of an international agreement regarding exemption of income of nonresidents in the Republic of Kazakhstan when revealing the fact of formation of a permanent establishment in the Republic of Kazakhstan by a nonresident.
      5. In case, if provision of services and execution of works in the territory of the Republic of Kazakhstan within the period, which does not lead to formation of a permanent establishment, is performed within a contract on joint activity, a nonresident legal entity, which is a participant of the contract, shall submit a notarized copy of the contract on joint activity or other documents, confirming its share of participation in the joint activity along with the document, specified in paragraphs 3 and 4 of this Article to a tax agent for the purposes of application of the regulations of the international agreement.
      In case, if a nonresident does not form a permanent establishment as a result of provision of services and execution of works within this agreement (contract) and the related projects, a tax agent shall have the right to apply the regulations of the international agreement to the income of the nonresident legal entity in proportion to the share of participation in the joint activity, specified in the contract on joint activity or other documents, confirming its share of participation in the joint activity.
      6. A tax agent shall be obliged to specify in the tax reporting, submitted to a tax body, the amounts of accrued (paid) income of a nonresident, withheld, exempted from withholding taxes in accordance with the regulations of the international agreements, the rates of the income tax and names of the international agreements.
      At that, the tax agent shall submit a notarized copy of the document, confirming the residency of the nonresident legal entity, which corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code to a tax body at its location. The copy of this document shall be submitted within three calendar days from the date of submission of the tax reporting, the deadline for submission of which comes after submission of this document by the nonresident to the tax agent in accordance with paragraph 3 of this Article.
      7. A tax agent shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan in case of unlawful application of the regulations of an agreement, which entailed to nonpayment or underpayment of taxes to the state budget.
      Footnote. Article 212 is in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 212-1. The order of application of an international agreement regarding exemption from taxation or application of the reduced tax rate to the income of a nonresident in the form of dividends, remunerations and (or) royalties, received from the sources in the Republic of Kazakhstan

      1. A tax agent shall have the right to independently apply exemption from taxation or the reduced tax rate, provided by the appropriate international agreement when paying income of a nonresident in the form of dividends, remunerations and (or) royalties or when deducing the paid income of a nonresident in the form of remunerations and (or) royalties provided that this nonresident is the final (actual) recipient of the income and is a resident of the state, with which the international agreement is concluded.
      For the purposes of this part, the final (actual) recipient (owner) of the income is a person who has the right of ownership, use, disposal of the income and who is a mediator in respect of this income, including agent, nominee.
      2. In case, if the payment of a remuneration is performed to the final (actual) recipient (owner) of income through an agent, a tax agent shall have the right to apply exemption or the reduced rate of the income tax, provided by the appropriate international agreement with the state, a resident of which is this final (actual) recipient (owner) of income under simultaneous fulfillment of the following conditions:
      1) the agreement (contract) shall reflects the amounts of remuneration for each person, who is the final (actual) recipient (owner) of the remuneration through an agent, specifying the information on this person (last name, name, patronymic (if there is one) of an individual or a name of a legal entity; the number of the tax registration in the state of incorporation (or its analogue) when there is one; the number of the state registration in the state of incorporation (or its analogue);
      2) the document, which confirms the residency of a person who is the final (actual) recipient (owner) of the remuneration, meeting the requirements of paragraphs 4 and 5 of Article 219 of this Code, shall be submitted to a tax agent.
      At that, the document which confirms the residency shall be submitted to the tax agent no later than one of the dates, specified in paragraph 3 of Article 212 of this Code which comes first.
      3. A tax agent shall be obliged to specify the amounts of the accrued (paid) income of a nonresident and withheld, exempted from withholding taxes in accordance with the regulations of the international agreements, rates of the income tax and names of the international agreements in the annual reporting.
      At that, the tax agent shall be obliged to submit a notarized copy of the document, which confirms the residency of a nonresident taxpayer (the final (actual) recipient (owner) of the income) corresponding with the regulations of paragraphs 4 and 5 of Article 219 of this Code to a tax body at its location. This copy shall be submitted within three calendar days from the date of submission of the tax reporting, the deadlines for submission of which comes after the time when the nonresident submits this document to a tax agent on one of the dates, specified in paragraph 3 of Article 212 of this Code.
      4. In case that a tax agent does not apply the regulations of an international agreement when paying income in the form of remuneration to a nonresident through an agent in the order, established by paragraph 2 of this Article, the tax agent shall be obliged to withhold the income tax at the source of payment at the rate, specified by Article 194 of this Code.
      The amount of the withheld income tax shall be transferred within the deadlines, set by Article 195 of this Code.
      5. The final (actual) recipient (owner) of the income - a nonresident shall have the right to refund the overpaid income tax at the source of payment in accordance with the regulations of an international agreement in case that a tax agent transfers the income tax, which is withheld at the source of payment of the income to this nonresident, to the budget.
      At that, the final (actual) recipient (owner) of the income - the nonresident shall be obliged to submit a notarized copy of the following documents to a tax agent:
      1) A contract, concluded with an agent, which reflects the amount of remuneration of this nonresident, specifying the information on this person (last name, name, patronymic (if there is one) of an individual or the name of a legal entity; the number of the tax registration in the state of incorporation (or its analogue) when there is one; the number of the state registration in the state of incorporation (or its analogue);
      2) the document which conforms its residency in the period, in which it received the income in the form of remuneration and which corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code.
      The documents, specified in this paragraph, shall be submitted by a nonresident within the limitation period, established by Article 46 of this Code from the date of the last transfer of the income tax, withheld at the source of payment to the budget, unless other deadlines are established by an international agreement.
      At that, the refund of the overly withheld income tax to the final (actual) recipient (owner) of income - nonresident shall be performed by a tax agent.
      6. When the conditions of paragraph 5 of this Article are fulfilled, a tax agent shall have the right to submit the additional calculation of the income tax, withheld at the source of payment in the amount of reduction when applying the reduced tax rate or exemption from taxation for a tax period, in which withholding and transfer of the income tax took place from the income of the final (actual) recipient (owner) of income - nonresident in the form of remuneration..
      In the specified case, the set-off of the overpaid amount of the income tax, withheld at the source of payment, shall be performed to a tax agent in the order, established by Article 599 of this Code.
      7. A tax agent shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan in case of the unlawful application of the regulations of an international agreement, which caused the nonpayment or underpayment of the taxes to the state budget.
      Footnote. The Code is supplemented with Article 212-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 212-2. The order of application of an international agreement regarding partial exemption from taxation of income of a nonresident in the form of dividends on shares which are the underlying asset of the depository receipts

      1. A tax agent shall have the right to apply the reduced rate of the income tax, provided by the appropriate international agreement with the state, a resident of which is the final (actual) recipient (owner) of the income when the income is paid in the form of dividends on shares which are the underlying assets of the depository receipts to the final (actual) recipient (owner) of the income - nonresident through a nominal holder of the depositary receipts under simultaneous fulfillment of the following conditions:
      1) presence of the list of holders of depository receipts, containing:
      the last names, names, patronymics (when there are ones) of individuals or names of the legal entities which are the owners of the depository receipts, the underlying assets of which are the shares, issued by a resident of the Republic of Kazakhstan;
      the information on quantity and form of the depositary receipts;
      the names and attributes of the documents, confirming identities of the individuals or the numbers and dates of the state registrations of the legal entities.
      The list of holders of the depository receipts shall be composed by the following persons:
      an organization which has the right to perform depository activities in the securities market of the Republic of Kazakhstan in case if an agreement on accounting and confirming the ownership right for property on depository receipts is concluded between a resident - issuer of the shares, which are the underlying assets of the depository receipts, and this organization;
      or another organization which has the right to perform depository activities in the securities market of a foreign state in case, if the agreement on accounting and confirming the ownership right for property on depository receipts is concluded between a resident - issuer of the shares, which are the underlying assets of the depository receipts, and this organization;
      2) presence of the document, confirming the residency of a person who is the final (actual) recipient (owner) of dividends on shares, which are the underlying assets of the depository receipts, corresponding with the requirements of paragraphs 4 and 5 of Article 219 of this Code.
      At that, the document, confirming the residency shall be submitted to a tax body no later than one of the dates, specified in sub-paragraph 3 of Article 212 of this Code which comes first.
      2. A tax agent shall be obliged to specify in the tax reporting, submitted to a tax body the amounts of the accrued (paid) income and withheld, exempted from withholding taxes in accordance with the regulations of the international agreements, rates of the income tax and the names of the international agreements.
      At that, the tax agent shall be obliged to submit a notarized copy of the document, which confirms the residency of a nonresident taxpayer and which corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code to a tax body at its location. This copy shall be submitted within three calendar days from the date of submission of the tax reporting, the deadline for submission of which comes after submission of this document by the nonresident to the tax agent on one of the dates, specified in paragraph 3 of Article 212 of this Code.
      3. In case if a tax agent does not apply the regulations of an international agreement when paying a nonresident income in the form of dividends on shares which are the underlying assets of depository receipts in the order, established by paragraph 1 of this Article, the tax agent shall be obliged to withhold the income tax at the source of payment at the rate, defined by Article 194 of this Code.
      The amount of the withheld income tax shall be subjected to transfer to the budget within the deadline, established by sub-paragraph 1) of paragraph 1 of Article 195 of this Code.
      4. The final (actual) recipient of the income - nonresident shall have the right for reimbursement of the overly withheld income tax at the source of payment in accordance with the regulations of an international agreement in case, if a tax agent transfers to the budget the income tax which is withheld from the income of this resident.
      At that, the nonresident shall be obliged to submit a notarized copy of the following documents to a tax agent:
      1) the document, confirming the ownership right for property on the depository receipts, the underlying asset of which are the shares of a resident issuer;
      2) the document, which confirms its residency within the period, in which the income in the form of dividends was received, and which corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code.
      The documents, specified in this paragraph shall be submitted by a nonresident within the limitation period, established by Article 46 of this Code from the date of the last transfer of the income tax, withheld at the source of payment to the budget, unless other deadlines are provided by an international agreement.
      At that, the refund to the nonresident of the overly withheld income tax shall be performed by a tax agent.
      5. A tax agent shall have the right to submit to a tax agent at its location the additional calculation on the income tax, which is withheld at the source of payment, in the amount of reduction of the income tax when applying the reduced rate for a tax period, in which withholding and transfer of the income tax from income of a nonresident in the form of dividends on the share were performed.
      In the specified case, the calculation of the overpaid amount of income tax, withheld at the source of payment, shall be performed to the tax agent in the order, established by Article 599 of this Code.
      6. In case of unlawful application of the regulations of an international agreement which entailed nonpayment or underpayment of the taxes to the budget, a tax agent shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan.
      Footnote. The Code is supplemented with Article 212-2 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 213. The order of application of an international agreement regarding exemption from taxation of income of a nonresident from international transportation services through a permanent establishment

      1. A nonresident shall have the right to apply the regulations of an international agreement in part of exemption from taxation of income from international transportation services, one party of which is the Republic of Kazakhstan, if it is the final recipient of income and a resident of the state, with which the international agreement is concluded.
      The application of an international agreement in part of exemption from taxation shall be allowed only when the nonresident has the document, confirming the residency and corresponding the requirements of paragraphs 4 and 5 of Article 219 of this Code at the date of submission of the declaration for the corporate income tax.
      A notarized copy of the document, confirming the residency shall be submitted by a taxpayer to a tax agent at the location of a permanent establishment when handing the declaration for the corporate income tax.
      2. A nonresident shall be obliged to specify in the declaration for the corporate income tax the amount of income, the rate and name of an international agreement, on the basis of which this rate was applied.
      3. At that, a nonresident legal entity shall be obliged to keep the separate accounting of the amounts of income from international transportation services (nontaxable in accordance with an international agreement) and from provision of services for international transportation (nontaxable in accordance with an international agreement) and from provision of transportation services (transportation) between the points, located in the territory of the Republic of Kazakhstan (subjected to taxation).
      4. The amount of expenses in connection with provision of international transportation services shall be determined by the direct or the proportional method.
      At that, a taxpayer shall have the right by its choice to apply one of the specified methods of calculation of expenses. The chosen method shall be used annually and can be changed only by the agreement with a tax authority, which is a superior towards a tax body at the location of the taxpayer (except for an authorized body), before the beginning of the reporting tax period.
      5. The direct method provides determination of the appropriate expenses on the basis of keeping the separate accounting of expenses in connection with provision of services for international transportation (nontaxable in accordance with an international agreement) and expenses in connection with provision of services for transportation (transportation) between the points located in the territory of the Republic of Kazakhstan (subjected to taxation).
      6. The proportional method provides the determination of the specified expenses as the product of a share and the total amount of expenses of a nonresident in connection with the activity, aimed at receiving income from the sources in the Republic of Kazakhstan for the reporting tax period. The share shall be determined as the ratio of the amount of income from provision of international transportation services to the total amount of the income received from the sources in the Republic of Kazakhstan.
      7. A taxpayer shall bear responsibility in accordance with the legislature of the Republic of Kazakhstan in case of unlawful application of the regulations of an international agreement which entailed nonpayment or underpayment of the tax to the budget.
      Footnote. Article 213 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 214. The order of application of an international agreement regarding partial exemption from taxation of a net income from a nonresident’s activity in the Republic of Kazakhstan through a permanent establishment

      1. A nonresident shall have the right to apply the reduced rate of the tax on a net income from the activity in the Republic of Kazakhstan through a permanent establishment, provided by the respective international agreement, if it is a resident of the state, with which the international agreement was concluded, and this international agreement provides the order of taxation of a net income of the nonresident which is different from the order, established by Article 199 of this Code.
      The application of the reduced rate of the tax shall be allowed when a nonresident has the document, confirming the residency and corresponding with paragraphs 4 and 5 of Article 219 of this Code on the date of submission of the declaration for the corporate income tax.
      A notarized copy of the document, confirming the residency shall be submitted by a nonresident to a tax body at the location of a permanent establishment when handing the declaration for the corporate income tax.
      2. A nonresident shall be obliged to specify the amount of the tax on the net income, the rate and name of an international agreement, on the basis of which this rate was applied, in the declaration for the corporate income tax.
      3. A nonresident taxpayer shall bear responsibility in accordance with the Republic of Kazakhstan in case of unlawful application of the regulations of an international agreement which entailed nonpayment or underpayment of the tax to the budget.
      Footnote. Article 214 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 215. The order of application of an international agreement regarding exemption from taxation of a nonresident individual’s income, received from the persons who are not the tax agents

      1. A nonresident individual shall have the right to apply the regulations of an international agreement in part of exemption from taxation of the income, specified in Article 204 of this Code, if he/she is the final recipient of the income and is a resident of the state, with which the international agreement was concluded.
      The application of an international agreement in part of exemption from taxation shall be allowed only when a nonresident has the document, which confirms the residency and corresponds with the requirements of paragraphs 4 and 5 of Article 219 of this Code on the date of submission of the declaration for the individual income tax.
      A notarized copy of the document, confirming the residency shall be submitted by a nonresident taxpayer to a tax body at the place of its stay (residence) when handing the declaration for the individual income tax.
      2. The amounts of distributed (received) income and paid (exempted from payment) taxes in accordance with the regulations of an international agreement and the name of the international agreement shall be specified by a nonresident individual in the declaration for the individual income tax.
      3. A nonresident individual shall be obliged to pay the income tax to the budget in the order and within the deadlines, established by Article 204 of this Code when there is no document, confirming the residency on the date of submission of the declaration for the individual income tax.
      At that, in case that the income tax from the income, received from the sources in the Republic of Kazakhstan is paid to the budget by a nonresident individual who has the right to apply the regulations of the appropriate international agreement, this nonresident shall have the right to refund the paid income tax from the budget in the order, established by Article 217 of this Code.
      Footnote. Article 215 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 216. The order of transfer of the income tax from the income of a nonresident to the budget or on a conditional bank deposit

      1. In case, if a tax agent does not apply the order, established by Article 212, 212-1 and 212-2 of this Code, the tax agent shall be obliged, at the moment of payment of income to a nonresident, to withhold the income tax at the source of payment at the rate, determined by paragraph 1 of Article 158 or by Article 194 of this Code, and to transfer the amount of the withheld income tax within the deadlines, established by Article 161, 195 of this Code to the budget or on a conditional bank deposit, opened for the nonresident.
      The order of transfer of the income tax to a conditional bank deposit shall be applied only to the tax, withheld from the income of a nonresident from execution of works, provision of services in the Republic of Kazakhstan which do not lead to formation of a permanent establishment.
      2. A nonresident that receives income, a tax agent and a resident bank, determined by a tax agent shall conclude the agreement on opening a conditional bank deposit for a nonresident in the form, coordinated with the participants of the agreement before the established deadline for transfer of the income tax from the income of the nonresident by the tax agent.
      3. A conditional bank deposit shall be opened in the national or a foreign currency. In case of opening of a conditional bank deposit in a foreign currency the amounts of the income tax and bank remunerations shall be transferred in the national currency, converted at the market rate of exchange on the date of transfer of the tax to the budget.
      4. The bank, on an account of which a conditional bank deposit is placed, shall be obliged no later than the 15th of the second month following the reporting quarter, to submit the statement of cash flows during the reporting quarter to a tax body at the location of a tax agent in the form, established by the Government of the Republic of Kazakhstan. The statement shall be submitted for the quarter, in which the cash flows occurred in the account, on which the conditional bank deposit is placed.
      Making adjustments and (or) additions to the statement and its submission shall be performed in the cases and the order, established by this Code for tax reporting.
      5. A tax agent shall be obliged to submit the following to a tax body at its location:
      1) the contract on a conditional bank deposit within ten calendar days from the date of its signing (a copy of this contract shall be kept in the specified tax body);
      2) the calculation on the corporate income tax which is withheld at the source of payment from the income of a nonresident within the deadlines, established by Article 196 of this Code and which reflects the amounts of the income tax, transferred to the conditional bank deposit.
      6. A tax body at the location of a tax agent shall be obliged to register a contract or to refuse to register an agreement on a conditional bank deposit within two calendar days from the date of submission of this contract by the tax agent. At that, only the contract on a conditional bank deposit, the conditions of which do not contradict with the provisions of this Article, shall be subjected to registration. The discrepancy of the conditions of the contract on a conditional bank deposit with the provisions of this Article shall be the ground for refusal to register.
      7. A nonresident and a tax agent shall not have the right to dispose the amount of the income tax, which is placed in a conditional bank deposit before a tax body makes the decision in favor of the nonresident.
      8. The provisions of this Article shall be applied only to a contract on a conditional bank deposit which is registered in a tax body.
      9. In case, if there is not registration in a tax body of a contract on a conditional bank deposit on the date of transfer of the income tax, withheld at the source of payment, determined in accordance with Article 195 of this Code, the transfer of the income tax shall be made to the budget within the established deadlines.
      10. A tax agent shall be obliged to specify in the calculation, submitted to a tax body the amounts of the calculated (paid) income and withheld taxes and the rate, at which the income tax is calculated.
      11. A tax body shall be obliged to keep accounting of the amounts of the income tax:
      placed on conditional bank deposit;
      refunded to a nonresident which has the right to apply the provisions of an international agreement;
      transferred to the budget.
      Footnote. Article 216 as amended by the Laws of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 217. The order of refunding of the income tax from the budget or a conditional bank deposit

      1. A nonresident shall have the right to refund the income tax in accordance with the provisions of an international agreement in the order, established by this Article in the following cases:
      1) of transfer of the income tax from the income of a nonresident, received from the sources in the Republic of Kazakhstan on a conditional bank deposit or to the budget;
      2) that a nonresident performs the activity in the Republic of Kazakhstan through an affiliate, representative office which does not lead to formation of a permanent establishment in accordance with the international agreement;
      3) of payment of the tax by a taxpayer in accordance with the provisions of this Code.
      At that, the nonresident shall be obliged to submit a tax application on refund of the paid income tax from the budget or a conditional bank deposit to a tax body on the basis of an international agreement (for the purposes of this Article and Article 218 of this code, hereinafter - the application) attached to the documents, specified by Article 219 of this Code.
      2. The application shall be submitted by a nonresident in a duplicate to a tax body which is a superior towards a tax body at the place of stay (residence) of a tax agent, unless otherwise provided by this paragraph.
      In case, if a tax agent, registered at the place of stay (residence) in a tax body which is directly vertically subordinated to an authorized body, the application shall be submitted to this tax body.
      The date of submission of the application to the tax body, depending on the method of submission is:
      1) in person - the date of the receipt of the application by the tax body;
      2) by mail, by a registered letter with acknowledgment - the date of receipt of the application by the tax body.
      3. The application shall be submitted by a nonresident on termination of execution of works, provision of services in the Republic of Kazakhstan when the conditions of an international agreement are fulfilled and works are executed as wells as services are provided in the Republic of Kazakhstan, except for execution of works, provision of services under the long-term contracts.
      For the purposes of this part, a long-term contract is a contract (agreement) on executions of works, provision of services which is not terminated during twelve-month period from the date of its conclusion.
      4. The application shall be submitted by a taxpayer to a tax agent before the expiry of the limitation period, defined by Article 46 of this Code from the date of the last placement of the amounts of the income tax on a conditional bank deposit or from the date of the last transfer of the income tax to the budget, unless otherwise provided by an international agreement.
      The application of the long-term contracts shall be submitted by a nonresident to a tax body during the actual executing of the contract no later than expiry of the limitation period, established by Article 46 of this Code, unless otherwise provided by an international agreement.
      5. A tax body shall refuse to consider the application in the following cases:
      1) submission of the application by a nonresident after the expiry of the deadline, established by paragraph 4 of this Article. At that, the nonresident shall not have the right to re-apply to the tax body;
      2) discrepancy of the document, confirming the residency with the requirements, established by paragraphs 4 and 5 of Article 219 of this Code;
      3) a nonresident does not submit the documents, determined by Article 219 of this Code;
      4) inobservance of the provisions of paragraph 2 of this Article by a nonresident.
      At that, the decision of a tax body to refuse to consider the application shall be sent to a nonresident with attachment of the application and the submitted documents within seven working days from the date of their receipt by the tax body, specifying the reasons of the refusal against signature or by a registered letter with acknowledgment.
      In case, if a tax body refuses to consider the application on the grounds, provided by sub-paragraphs 2), 3) and 4) of this paragraph, a nonresident shall have the right to re-apply within the deadline, established by paragraph 4 of this Article, if the nonresident eliminates the violations.
      6. A tax body shall consider the application within thirty working days from the date of its submission by a nonresident.
      At that, the period of consideration of the application, provided by this paragraph, shall be suspended for the period:
      1) of the thematic audit, specified in paragraph 8 of this Article;
      2) from the date when the tax body sends the request, specified in paragraphs 7, 9 and 10 of this Article to the date of receipt of the response on this request.
      7. During consideration of the application of a nonresident, a tax body shall have the right to direct a request to other tax bodies, state bodies, to the competent bodies of foreign states, banks and organizations, performing certains of banking operations, and other organizations, working in the territory of the Republic of Kazakhstan on provision of the necessary information, and to the nonresident on the issues, related to refund of the tax.
      8. A tax body shall perform the thematic audit on refunding of the paid income tax from the budget or from a conditional bank deposit on the basis of the tax application of a nonresident in the order, specified by Chapter 89 of this Code when considering the application of the nonresident, except for the case, specified in paragraph 10 of this Article.
      9. In case, if a nonresident has a representative office or an affiliate in the Republic of Kazakhstan, a tax body, which considers the application, shall be obliged to submit a request to perform an unplanned complex tax audit of a nonresident for the limitation period, established by Article 46 of this Code on the issue of fulfillment of its tax obligations and presence or absence of a permanent establishment to a tax body at the location of the representative office or the affiliate.
      10. In case of liquidation, bankruptcy of a tax agent, a tax body shall have the right to submit a request to provide the information on interrelations of the tax body and a nonresident to a competent body of the state of residence of the nonresident, the application of which is considered.
      At that, the decision, specified in paragraph 11 of this Article, shall be applied on the basis of the received information on the request of the tax service bodies from the competent body of the state of residence of the nonresident and (or) the data of the tax reporting on the income tax, withheld at the source of payment, submitted by the liquidated or the tax agent, recognized as bankrupt.
      In case of the written refusal of the competent body of a foreign state to provide the information on the request, sent on the grounds, provided by the first part of this paragraph or failure to respond for more than two years, the tax body shall be obliged to refuse to consider the application. At that, a taxpayer shall have the right to initiate the mutual agreement in accordance with the provisions of Article 226 of this Code.
      11. One of the following decisions shall be made upon the results of consideration of the application of a nonresident:
      1) to refund fully or partially the income tax, withheld at the source of payment;
      2) to refuse to refund the income tax, withheld at the source of payment;
      The decision of the tax body shall be formalized in writing and signed by the head or his/her deputy.
      The submitted application shall state the amount of the income tax, refundable in accordance with the provisions of an international agreement and the application itself shall be signed by the head or his/her deputy and sealed with the stamp by a tax body when the tax body makes the decision to refund fully or partially the income tax, withheld at the source of payment.
      The decision of the tax body upon the results of consideration of the application to refund the income tax, withheld at the source of payment shall specify:
      1) the date of the decision-making;
      2) the name of the tax body that made the decision;
      3) the full name of the nonresident, who submitted the application;
      4) the number of the tax registration in the state of incorporation (or its analogue) when there is one;
      5) in case of the decision to refund - the amount of the income tax, refundable to the nonresident from the budget or from a conditional bank deposit;
      6) in case of the decision to refuse to refund the income tax, withheld at the source of payment - the justification with reference to the norms of the legislation of the Republic of Kazakhstan and (or) with specification of the information, received on the basis of the request of the tax service body from the competent body of a foreign state, which guided the tax body in making the decision.
      12. In case if a higher body makes a decision to refund fully or partially the income tax, withheld at the source of payment, the copies of the decision and the application of a nonresident shall be sent by this tax body to the tax body, in which the tax agent, which performed the withholding of the income tax at the source of payment from the income of the nonresident, is registered at the place of stay (residence).
      13. In case of payment of the income tax to the budget and when a tax body makes the decision to refund the income tax, withheld at the source of payment, the tax body, in which a tax agent is registered at the place of stay (residence), shall refund the amount of the income tax from the budget to a nonresident in the order, specified by Article 602 of this Code within thirty working days from the date of this decision-making.
      14. In case of transfer of the income tax on a conditional bank deposit and when a tax body makes the decision to refund the income tax, withheld at the source of payment, a bank shall refund the amount of the income tax from the conditional bank deposit, specified in the application and the amount of the calculated bank remunerations to a nonresident. At that, the application, certified by the tax body, shall be personally submitted to the bank by the nonresident.
      15. The decision of a tax body with attachment of one copy of the application of a nonresident shall be handed to a nonresident against the signature or shall be sent as a registered letter with the acknowledgment of receipt.
      The date of receipt of the decision of a tax body by a nonresident shall be the date of handing or noting of the nonresident in the notification of mail or other communication organization.
      16. In case of disagreement with the decision of a tax body, specified in paragraph 11 of this Code, a nonresident shall have the right to appeal against it to an authorized body within ninety calendar days from the date of receipt of the tax body’s decision.
      At that, the nonresident must submit:
      1) to an authorized body - a complaint in a written form with attachment of a copy of the decision of the tax body, and the documents, specified by Article 219 of this Code, except for the application;
      2) to the tax body, the decision of which is appealed by the nonresident - a copy of a complaint, submitted to an authorized body.
      The complaint shall specify:
      1) the date of signing the complaint by a nonresident;
      2) the last name, name and patronymic (when there is one) or full name of the person, submitting the complaint, its place of residence (stay);
      3) the number of the tax registration in the state of incorporation of a nonresident (or its analogue) when there is one;
      4) the name of the tax body, the decision of which is applied by a nonresident;
      5) the circumstances, on which the person, who makes the complaint, bases its claims and evidences, supporting these circumstances;
      6) the list of the attached documents.
      17. An authorized tax body shall submit the decision to refuse to consider a complaint of a nonresident to the nonresident within five working days from the date of submission of the complaint in the following cases:
      1) the nonresident submits the complaint after the deadline, specified in paragraph 16 of this article;
      2) discrepancy of the content of the complaint with the requirements, established by paragraph 16 of this Article;
      3) discrepancy of the document, confirming the residency with the requirements, established by paragraph 4 and 5 of Article 219 of this Code;
      4) the nonresident does not submit the documents, specified by Article 219 of this Code;
      5) the nonresident submits the complaint (application) against the decision of the tax body, specified in paragraph 11 of this Article to a court.
      In case, if an authorized body refuses to consider the complaint on the grounds, provided by sub-paragraphs 2), 3) and 4) of this paragraph, a nonresident shall have the right to re-apply the complaint within ninety days from the date of receipt of the decision to refuse to consider the complaint, if the violations are eliminated by the nonresident.
      18. An authorized body shall consider a complaint within thirty working days from the date of its submission by a nonresident.
      19. The period of consideration of a complaint of a nonresident shall be suspended in case if an authorized body submits a request to a competent body of a foreign state or to the state bodies of the Republic of Kazakhstan, and to the nonresident on the issues, related to consideration of its application on provision of the necessary information - before receiving this information.
      20. An authorized body shall make one of the following decisions upon the results of considering a complaint:
      1) to refund fully or partially the income tax, withheld at the source of payment;
      2) to refuse to refund the income tax, withheld at the source of payment.
      The decision of an authorized body shall be formalized in a written form and shall be signed by the head or his/her deputy and shall be handed to a nonresident against signature or shall be sent to the nonresident as a registered letter with acknowledgment of receipt.
      The date of receipt of the tax body’s decision by a nonresident shall be the date of handing or noting of the nonresident in the notification of a mail or another communication organization.
      The decision of an authorized body upon the results of considering a complaint shall specify:
      1) the date of the decision-making;
      2) full name of the nonresident, submitting the application;
      3) the number of the tax registration in the state of incorporation (or its analogue) when there is one;
      4) in case of application of the decision to refund - the amount of the income tax, refundable to a nonresident from the State Budget or a conditional bank deposit;
      5) in case of the decision to refuse to refund the income tax, withheld at the source of payment - the justification with reference to the norms of the legislation of the Republic of Kazakhstan and (or) with specification of the information, received on the basis of the request of the tax service body from the competent body of a foreign state, which guided the tax body in making the decision.
      21. A copy of the decision of an authorized body shall be submitted to a tax body, the decision of which was appealed by a nonresident.
      In case, if an authorized body makes a decision to refund the income tax, withheld at the source of payment, a tax body, the decision of which was appealed by a nonresident, shall specify the amount of the income tax, which is refundable in accordance with the provisions of an international agreement in the application previously submitted to this tax body. The date of certification of the application shall be the date of receiving a copy of the decision of the authorized body by this tax agent. At that, the application shall be certified by the signature of the head or his/her deputy and by the stamp of this tax body and shall be handed to the nonresident against signature or shall be sent as a registered letter with acknowledgment of receipt or in person.
      A superior tax body, the decision of which was appealed by a nonresident, shall submit copies of the specified decision and the certified application of this nonresident to the tax body, in which a tax agent is registered at the place of stay (residence), which performed the withholding of the income tax at the source of payment from the income of the nonresident.
      22. In case, if a nonresident submits a complaint (application) against the decision, specified in paragraphs 11 or 20 of this Article to a court within the deadline, established by paragraph 1 of Article 218 of this Code, the submission of the collection order to a bank on transfer of the amount of the tax, placed on a conditional bank deposit, to the budget, shall be suspended from the date of receiving the complaint by a court for proceedings before implementation of a judicial act.
      Footnote. Article 217 is in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 218. The order of transfer of the income tax from a conditional bank deposit to the budget

      1. A tax body shall be obliged to submit the collection order to a bank on transfer of the amount of the tax, placed on a conditional bank deposit, to the budget within the following deadlines:
      1) in the case of non-receipt of a copy of a complaint, specified by paragraph 16 of Article 217 of this Code, by a nonresident - after ninety calendar days from the date of receiving the decision, specified in paragraph 11 of Article 217 of this Code by the nonresident;
      2) in case a nonresident appeals against the decision, specified in paragraph 11 of Article 217 of this Code to an authorized body - after ninety calendar days from the date of receiving the decision, specified in paragraph 20 of Article 217 of this Code by the nonresident;
      3) in case a court makes a decision to refuse to satisfy fully or partially the complaint (application), specified in paragraph 22 of Article 217 of this Code - within five calendar days from the date of implementation of this decision;
      At that, in case that tax service bodies or a court make the decision on partial refund of the income tax, withheld at the source of payment, the collection order shall be sent on the amount of the tax, placed on a conditional bank deposit, corresponding with the part of the claim, in which the nonresident was denied.
      2. In case, if a nonresident does not submits the application to a tax body before the deadline, established by paragraph 4 of Article 217 of this Code, the tax body shall be obliged to submit the collection order on transfer of the amount of the tax, placed on a conditional bank deposit, to a bank within fifteen calendar days after the specified deadline.
      3. A tax body shall simultaneously submit a request on the amounts of bank remunerations, accrued since the placement of the amount of the income tax on a conditional bank deposit of a nonresident before its transfer to the budget and the collection order in the order and in the form, defined by the Government of the Republic of Kazakhstan.
      4. A bank shall be obliged within two calendar days from the date of receiving the request to submit the information on the accrued bank remunerations to a tax body in the form, established by the Government of the Republic of Kazakhstan.
      Making adjustments and (or) additions to the information on the accrued amounts of bank remunerations and their submission shall be performed in the cases and in the order, specified by this Code for tax reporting.
      5. A tax body shall be obliged within two calendar days after receiving the information on the accrued amounts of bank remunerations to submit to a bank the collection order on recovery of the amounts of bank remunerations to the budget.
      6. A bank shall be obliged no later than one operational day following the date of receiving the collection order to transfer the amount of the income tax, placed on a conditional bank deposit, and the accrued bank remunerations to the budget.
      7. A bank shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan when violating the conditions of a contract on a conditional bank deposit and untimely transferring of the withheld amounts of the income tax to the budget that occurred due to the fault of the bank.
      8. In case, if it is impossible for a bank to fulfill the obligations to transfer the amount of the income tax, placed on a conditional bank deposit to the budget, the obligation to transfer the income tax at the source of payment, bank remunerations and penalties for untimely transfer of the tax to the budget shall be entrusted to a tax agent.
      Footnote. Article 218 as amended by the Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 219. Requirements for the document, confirming the residency and the tax application on refund of the paid income tax from the budget or a conditional bank deposit under an international agreement

      1. In case of application of Article 217 of this Code, the tax application on refund of the paid income tax from the budget or a conditional bank deposit under an international agreement shall be submitted by a nonresident to a tax body with the attachment of:
      1) The notarized copies of contacts (agreements) on execution of works, provision of services or for other purposes;
      2) The notarized copies of the founding documents or extracts from the trade register (the register of shareholders or other similar document, provided by the legislation of the state, in which the nonresident is registered), specifying the shareholders (participants) and the majority shareholders of a nonresident legal entity;
      3) The copies of the accounting documents, confirming the amounts of the received income and withheld (paid) taxes;
      4) the document, confirming the residency, handed by a competent body of the state of residency or its notarized copy;
      5) the copies of the documents, confirming the identities of the nonresident individuals, who are employees or other personnel, hired by a nonresident for execution of works, provision of services in the territory of the Republic of Kazakhstan and the documents, confirming the periods of their stay in the territory of the Republic of Kazakhstan.
      2. In case if a nonresident submits a tax application on refund of the paid income from the budget or a conditional bank deposit on the basis of an international agreement from the income, received from the shares which are the underlying asset of the depository receipts, the following documents shall be attached to the application:
      1) an extract from an account, which is received from a shareholder of the joint-stock company "Central Securities Depository" and which contains:
      last name, name, patronymic (if there is one) of the nonresident;
      the information on the number and the form of depositary receipts;
      the name and accessories of the document, confirming the identity of the nonresident (for an individual), the number and the date of the state registration of the nonresident (for a legal entity);
      2) the decision of the general meeting of shareholders - an issuer of the shares, which are the underlying asset of depository receipts, on payment of dividends for a certain period, specifying the amount of the dividend per share and the date of making the list of the shareholders who have the right to receive the dividends;
      3) the extracts from a foreign currency account on the received amounts of dividends;
      4) the document, confirming the residency of this nonresident and corresponding with paragraphs 4 and 5 of this Article.
      3. In case, if the documents, specified in paragraphs 1 and 2 of this Article are composed in a foreign language, a nonresident shall be obliged to attach their notarized translation into Kazakh or Russian languages.
      4. For the purposes of application of the provisions of this Chapter, the document, confirming the residency of a foreigner is the official document, confirming that the foreigner - recipient of the income is a resident of the state, with which an international agreement is concluded:
      1) within the period of the time, specified in this document;
      2) in case, if this document does not specify the period of time within the calendar year, in which it is handed.
      The document, confirming the residency of a foreigner shall be certified by a competent body of a foreign state, a resident of which the foreigner - recipient of the income is.
      5. The signature and the stamp of a body which certifies the documents, confirming the residency of a nonresident, and the signature and the stamp of a foreign notary in case of notarizing a copy of the documents, specified in sub-paragraph 1), 2) and 4) of paragraph 1 of this Article shall be subjected to diplomatic or consulate legalization in the order, defined by the legislation of the Republic of Kazakhstan or shall be subjected to apostilization in accordance with an international agreement of the Republic of Kazakhstan.
      Footnote. Article 219 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2012); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012.

Article 220. A certificate on the amounts of income, received from the sources in the Republic of Kazakhstan and the withheld (paid) taxes

      1. A nonresident shall have the right to receive a certificate on the amounts of income, received from the sources in the Republic of Kazakhstan and withheld (paid) taxes in a tax body for the purposes of receiving the set-off of taxes, which are paid in the Republic of Kazakhstan, in the state of residence or deduction of income from the sources in the Republic of Kazakhstan.
      2. A nonresident shall be obliged to submit a tax application to the following tax body for receiving a certificate on the amounts of the received income from the sources in the Republic of Kazakhstan and the withheld (paid) taxes:
      1) a nonresident legal entity operating in the Republic of Kazakhstan without forming a permanent establishment - at the location of the tax agent;
      2) a nonresident legal entity operating in the Republic of Kazakhstan through a permanent establishment - at the location of the permanent establishment;
      3) a foreigner or a stateless person- at the location of the tax agent;
      4) a foreigner or a stateless person who personally pay taxes from the income, coming from the sources in the Republic of Kazakhstan - at the place of stay (residence) in the Republic of Kazakhstan.
      3. A certificate on the amounts of the received income from the sources in the Republic of Kazakhstan and withheld (paid) taxes shall be handed by a tax body no later than fifteen calendar days from the date, which is the most recent of the following dates:
      of submission of a tax application;
      of submission of the appropriate form of the tax reporting, which must reflect the amounts of the distributed income of a nonresident, which is payable by a nonresident taxpayer and (or) a tax agent.
      4. A tax body shall send a written refusal to a nonresident to issue the certificate when revealing discrepancy between the data of the nonresident’s tax application with the data, specified in the forms of the tax reporting of the taxpayer and (or) the tax agent, and in case of absence of the tax payment or presence of tax arrears of the taxpayer and (or) the tax agent on transfer of the tax from the income of nonresidents on the date of submitting the tax application.
      5. In case that a nonresident does not submit a tax application, a tax body shall not hand a certificate on the amounts of the received income from the sources in the Republic of Kazakhstan and the withheld (paid) taxes.
      6. A certificate on the amounts of the received income from the sources in the Republic of Kazakhstan and withheld (paid) taxes shall be handed to a nonresident against the signature in the journal of issuance of documents.
      Footnote. Article 220 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 27. SPECIFICS OF TAXATION OF INCOME OF RESIDENTS FROM THE EXTERNAL ECONOMIC ACTIVITIES

Article 221. The income, received from the sources outside the Republic of Kazakhstan

      1. For the purposes of this Code, the income from the sources outside the Republic of Kazakhstan regardless of the place of payment is alls of the income which are not the income from the sources in the Republic of Kazakhstan.
      2. A resident taxpayer shall be obliged to declare the income from the sources outside the Republic of Kazakhstan, including those, coming from the sources in the states with preferential taxation, in the tax declaration in the Republic of Kazakhstan.

Article 221-1. The order of determination of income from realization of property, received from the sources outside the Republic of Kazakhstan

      1. When undertaking the realization of property the income, received from the sources outside the Republic of Kazakhstan is the cost of the property realization, unless otherwise provided by this Article.
      2. When undertaking the realization of property the income, received from the sources outside the Republic of Kazakhstan shall be determined as the positive disparity between the cost of the property realization and the cost of its purchase when realizing the following property:
      1) The property which is located outside the Republic of Kazakhstan, the right on which or transactions with which shall be subjected to the state registration in a competent body of a foreign state in accordance with the legislation of the foreign state;
      2) The property, located outside the Republic of Kazakhstan which is subjected to the state registration in a competent body of a foreign state in accordance with the legislation of the foreign state;
      3. The income, coming from realizing securities, except for the debt securities, received from the sources outside the Republic of Kazakhstan shall be determined as the positive disparity between the cost of realization and the cost of purchase.
      4. When undertaking the realization of the debt securities the income, received from the sources outside the Republic of Kazakhstan shall be determined as the positive disparity without a coupon between the cost of realization and the cost of purchase, taking into account depreciation of a discount and (or) a remuneration on the date of the realization.
      5. The income from selling of a share of participation, received from the sources outside the Republic of Kazakhstan shall be determined as the positive disparity between the cost of realization and the cost of purchase (contribution).
      6. The provisions of paragraph 2 of this Article shall be applied in the following cases:
      1) real estate shall be located in the territory of a state with the preferential taxation;
      2) the rights for movables or transaction with movables shall be registered in a competent body of a state with the preferential taxation.
      7. The provisions of paragraphs 3, 4 and 5 of this Article shall not be applied in case if the income, specified in paragraphs 3, 4 and 5 of this Article is received from the sources in a state with the preferential taxation.
      8. The provisions of paragraphs 2, 3, 4 and 5 of this Code shall be applied on the basis of the following documents, confirming:
      1) the cost of purchase of the property (the cost of a contribution);
      2) the cost of realization of the property;
      3) the registration of the ownership right for the property and (or) transactions with property by a competent body of a foreign state in accordance with the legislation of the foreign state.
     Footnote. The Code is supplemented with Article 221-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2009).

Article 222. The order of deduction of expenses of a resident legal entity in connection with the activity, aimed at receiving income outside the Republic of Kazakhstan

      1. A resident taxpayer shall attribute to deduction the expenses in connection with the activity in the Republic of Kazakhstan, aimed at receiving income, including income from the sources outside the Republic of Kazakhstan, in the order, established by the provisions of parts 4 and 6 of this Code.
      2. A resident taxpayer shall attribute to deduction the expenses, incurred in the Republic of Kazakhstan and outside the Republic in connection with the activity aimed at receiving income from the sources outside the Republic of Kazakhstan through a permanent establishment to its permanent establishment, located in a foreign state in accordance with the provisions of the tax legislation of this foreign state.
      3. Deduction of the management and general administrative expenses, incurred in the Republic of Kazakhstan and outside the Republic for the purposes of receiving the taxable income shall be allowed when determining this taxable income of a permanent establishment of a resident legal entity in a foreign state in accordance with the provisions of the tax legislation of this foreign state or an international agreement.
      4. The amount of the management and general administrative expenses shall be attributed to the deductions in a foreign state, from sources of which the income was received by a resident legal entity, in the order, provided by the tax legislation of this foreign state.
      In case, if the tax legislation of a foreign state, from the sources of which the income was received by a resident legal entity, or an international agreement allows deduction of the management and general administrative expenses, but at that, the tax legislation of the foreign state does not provide the order of attributing these expenses to deductions, a resident taxpayer shall attribute to deductions the management and general administrative expenses in the specified foreign state in the order, established by Article 208 - 211 of this Code.
      Footnote. Article 222 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 223. Set-off of a foreign tax

      1. The amounts of taxes on income or an identical of the income tax from income, paid outside the Republic of Kazakhstan and received by a resident taxpayer from the sources outside the Republic of Kazakhstan shall be subjected to set-off against the payment of the corporate or the individual income tax in the Republic of Kazakhstan if the document confirming payment of this tax is provided.
      This document is a certificate for the amounts of the received income from the sources in a foreign state and the paid income which is handed by a tax body of the foreign state.
      In case, if a certificate, for the amounts of the received income from sources in a foreign state and paid income which is handed by a tax body of the foreign state, is composed in a foreign language, it is necessary to have the translation into Kazakh or Russian languages notarized in the order, established by the legislation of the Republic of Kazakhstan.
      A taxpayer shall have the right to submit the certificate, specified by this paragraph on request of a tax body for the purpose of the in-house audit when attributing to set-off taxes, paid in a foreign state against payment of the corporate or the individual income tax.
      2. Set-off of a foreign tax shall not be provided in the Republic of Kazakhstan from the income of a resident taxpayer from the sources outside the Republic of Kazakhstan:
      1) which are exempted from taxation in accordance with the provisions of this Code;
      2) which are subjected to adjustment in accordance with Article 99 of this Code;
      3) which are subjected to taxation in the Republic of Kazakhstan in accordance with the provisions of an international agreement regardless of the fact of payment and (or) withholding of taxes from this income in a foreign state within the overpaid amount of the tax in the foreign state. At that, the overpaid amount of the tax shall be determined as the disparity between the actually paid amount of the tax and the amount of the tax which is payable in the foreign state in accordance with the provisions of an international agreement.
      3. The size of the credited amounts, provided by this Article shall be determined in each foreign state separately.
      At that the size of a credited amount of the tax is the least of the following amounts:
      1) the amount of the actually paid tax in a foreign state from the income, received by a resident taxpayer from the sources outside the Republic of Kazakhstan;
      2) the amount of the income tax from the income from the sources outside the Republic of Kazakhstan, calculated in the Republic of Kazakhstan in accordance with the provisions of this Chapter and part 4 or 6 of this Code and the provisions of an international agreement.
      A taxpayer shall perform the set-off of the foreign income tax from the income from the sources outside the Republic of Kazakhstan in the tax period, in which this income is receivable (received), within the limitation period, set by Article 46 of this Code.
      In case if the income is recognized in a tax period which differs from the tax period, in which the specified income is recognized in accordance with this Code, in a foreign state, a resident taxpayer shall have the right to perform the set-off of the foreign income tax from the income from the sources outside the Republic of Kazakhstan in the tax period, in which this income was accrued in accordance with the tax legislation of the Republic of Kazakhstan.
      4. A resident shall fill the appropriate attachment to the declaration for the corporate or the individual income tax in order to determine the total amount of the set-off of the income tax which is paid in a foreign state from the income received from the sources in this state.
      5. Excluded by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).
      Footnote. Article 223 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 224. The income received in a state with the preferential taxation

      1. A nonresident, located and (or) registered in a state with the preferential taxation is a nonresident legal entity which simultaneously corresponds with the following conditions:
      1) it shall be registered in a state with the preferential taxation;
      2) 10 or more percent of its authorized capital or voting shares shall directly or indirectly belong to a resident of the Republic of Kazakhstan.
      A part of income of nonresidents, located and (or) registered in a state with the preferential taxation, shall be included in the taxable income and, if there is no taxable income, it shall reduce a loss of a resident of the Republic of Kazakhstan, who directly or indirectly owns 10 or more percent of the authorized capital or voting shares of these nonresidents.
      The provisions of this paragraph shall also be applied to participation of a resident in other forms of working organizations which do not form a legal entity, where a participation share directly or indirectly makes 10 or more percent.
      The provisions of this paragraph shall not be applied to indirect participation of a resident in the authorized capital of a nonresident, located and (or) registered in a state with the preferential taxation, and (or) to indirect possession of voting shares of this nonresident, performed through another resident, by a resident.
      A part of income of nonresidents, located and (or) registered in a state with the preferential taxation, which is subjected to inclusion in the taxable income, and in case, if there is no taxable income, which reduces a loss of a resident of the Republic of Kazakhstan, shall be determined taking into account a share of participation of the resident in the authorized capital and (or) an ownership share of voting shares of these nonresidents legal entities (hereinafter - the consolidated income) by the following formula:
      CI = I1 * S1 + I2 * S2 +...+ In * Sn
      where:
      CI - is the consolidated income;
      I1, I2, In - is the amount of income of the reporting period after taxation, recognized in a separate financial reporting of each nonresident, located and (or) registered in a state with the preferential taxation;
      S1, S2, Sn - is a share of direct and indirect participation of a nonresident in the authorized capital of each nonresident, located and (or) registered in a state with the preferential taxation, or a share of direct or indirect possession by a resident of voting shares of this nonresident.
      For the purposes of this Article, the reporting period is a period, the duration of which corresponds with the duration of the reporting tax period, determined in accordance with Article 148 of this Code.
      In case if there is a discrepancy of the duration and dates of the beginning and the end of a reporting period and the reporting tax period, determined in accordance with Article 148 of this Code, in a state with the preferential taxation and the Republic of Kazakhstan, a taxpayer shall be obliged to adjust the amount of income as follows by using the correction factors (F1, F2):
      I1, I2, In = Iy * F1 + Iy + 1 * F2,
      F1 = TP (SR)1
      TP (SR)3,
      F2 = TP (SR)2
      TP (SR)3,
      where:
      I1, I2, In - is the amount of income of the reporting period after taxation, recognized in a separate financial reporting of each nonresident, located and (or) registered in a state with the preferential taxation;
      TP (SR)1 - is the number of months of one reporting period in a state with the preferential taxation, included in the scope of the tax reporting period in the Republic of Kazakhstan;
      TP (SR)2 - is the number of months of the following reporting period in a state with the preferential taxation, included in the scope of the tax reporting period in the Republic of Kazakhstan;
      TP (SR)3 - is the total number of months of the reporting period in a state with the preferential taxation;
      Iy - is the amount of income of a nonresident, located and (or) registered in a state with the preferential taxation, after taxation for one reporting period in this state, a part of which shall be included in the reporting tax period in the Republic of Kazakhstan;
      Iy + 1 - is the amount of income of a nonresident, located and (or) registered in a state with the preferential taxation, after taxation for another reporting period in this state, a part of which shall be included in the reporting tax period in the Republic of Kazakhstan.
      For the purposes of this Article, a share of indirect participation of a resident in the authorized capital or indirect possession by a resident of the voting shares of a nonresident, located and (or) registered in a state with the preferential taxation (hereinafter - a share of indirect participation or possession) shall be determined by the following formula:
      X = X1 * X2 *... * Xn * 100;
      where:
      X - is a share of indirect participation or possession in percentage;
      X1 - is the coefficient of direct participation of a resident in the authorized capital of a nonresident, located and (or) registered in a state with the preferential taxation, or direct possession by a resident of the shares of this nonresident;
      X2,..., Xn - is the coefficient of direct participation of each nonresident, located and (or) registered in a state with the preferential taxation, in the authorized capital of other nonresident, located and (or) registered in a state with the preferential taxation, or direct possession by each nonresident, located and (or) registered in a state with the preferential taxation, of shares of other nonresident, located and (or) registered in a state with the preferential taxation.
      2. The amount of income of a reporting period after taxation of each nonresident, located and (or) registered in a state with the preferential taxation, a part of which shall be accounted when determining a part which is subjected to inclusion in the taxable income in accordance with paragraph 1 of this Article, and in case, if there is no taxable income, which reduces a loss of a resident in the Republic of Kazakhstan, shall be determined by a separate financial reporting of this nonresident.
      Income of each nonresident, located and (or) registered in a state with the preferential taxation, on the date of its separate financial reporting for the purposes of application of the provisions of this Article by a resident of the Republic of Kazakhstan, shall be transferred in tenge with application of the arithmetic average of the market exchange rate for the reporting period, for which this reporting was composed.
      Note of the RCLI!
      Paragraph 3 shall be enforced from 01.01.2012 (see Article 9 of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467).
      3. The resident, specified in paragraph 1 of this Article, shall be obliged no later than the 31st of December of the year following the reporting tax period to submit a certificate, composed by it, on nonresidents, located and (or) registered in a state with the preferential taxation, 10 or more percent of the authorized capital or the voting shares of which directly or indirectly belong to it, to a tax body at its location (residence). This certificate shall reflect the information on the names of nonresident legal entities, the numbers of their tax registration in the state of incorporation (or its analogue) when there are ones, the number of the state registration in the state of incorporation (or its analogue).
      The resident, specified in paragraph 1 of this Article shall also be obliged to submit copies of the following documents with attachment of their notarized translation into Kazakh or Russian languages:
      1) the consolidated financial reporting of a resident legal entity (in case, if the resident legal entity has a subsidiary, located and (or) registered in a state with the preferential taxation);
      2) a separate financial reporting of each nonresident, located and (or) registered in a state with the preferential taxation;
      3) an audit report for each financial reporting, specified in this paragraph in case, if the obligatory audit of such financial reporting is established for the specified persons by legislative acts of the Republic of Kazakhstan or a foreign state.
      Note of the RCLI!
      Paragraph 4 shall be enforced from 01.01.2012 (see Article 9 of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467).
      4. A foreign state or its administrative and territorial unit shall be recognized as a state with the preferential taxation in case, if they correspond with one of the following conditions:
      1) the rate of the income tax in this state or administrative and territorial unit shall be less than 10 percent;
      2) this state or administrative and territorial unit shall have the Laws on confidentiality of financial information or laws allowing maintaining secrecy on actual owner of property, income or actual owners, participants, founders, shareholders of a legal entity (company). The provisions of this sub-paragraph are not applied to the administrative and territorial units of the states, with which the Republic of Kazakhstan has an international agreement, providing provisions on exchange of information between competent bodies, except for the case when au authorized body receives a written refusal to provide the information, the exchange of which is provided by the specified international agreement, from a competent body of a foreign state or when a competent body of a foreign state or its administrative and territorial unit did not provide this information during more than two years after direction of the appropriate request by an authorized body.
      The enumeration of states with the preferential taxation shall be approved by the Government of the Republic of Kazakhstan.
      Note of the RCLI!
      Paragraph 5 shall be enforced from 01.01.2012 (see Article 9 of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467).
      5. The provisions of this Article shall be applied regardless of the benefits provided by the Republic of Kazakhstan to a resident and (or) benefits, established by the legislation of the Republic of Kazakhstan for a resident, investment tax preferences, most favored nation basis, and other taxation conditions which are more favorable than those, provided by this Code.
      Footnote. Article 224 is in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (the order of enforcement see Article 2)

Article 225. The order of implementation of an international agreement in a foreign state

      1. In case if a resident performs an activity in a foreign state, with which the Republic of Kazakhstan has an international agreement, when fulfilling the conditions of the appropriate international agreement, the resident shall have the right to apply the provisions of this international agreement in the specified state.
      2. The provisions of an international agreement shall be applied to the income of a resident from the sources outside the Republic of Kazakhstan when fulfilling the conditions, established by Article 206 of this Code.
      3. For the purposes of application of an international agreement, a person shall submit a tax application on confirmation of the residency to a tax body, which is a superior towards the tax body, in which this person is registered at the place of stay (residence), in order to confirm the residency in the Republic of Kazakhstan.
      In case, if a person is registered at the place of stay (residence) in a tax body, which is directly vertically subordinated to an authorized body, a tax application on confirmation of the residency shall be submitted to this tax body.
      At that, the following persons shall be obliged to submit the notarized copies of the following documents along with a tax application on confirmation of the residency:
      1) a foreign legal entity which is a resident on the basis that its place of effective management is located in the Republic of Kazakhstan - of the document, confirming presence of the place of effective management (the location of the actual governing body) of the legal entity (minutes of the general meeting of the board of directors or a similar body with specification of its venue or other documents, confirming the place of the basic management and (or) control and making strategic commercial decisions which are necessary to perform the entrepreneurial activity of the legal entity) in the Republic of Kazakhstan;
      2) a citizen of the Republic of Kazakhstan who is a resident - an identity card or a passport of the Republic of Kazakhstan;
      3) a foreigner and a stateless person who are the residents:
      an identity card or a passport;
      a document, confirming the period of stay in the Republic of Kazakhstan (a visa or other documents);
      a residence permit in the Republic of Kazakhstan (when there is one).
      4. Following the consideration of a tax application on confirmation of the residency, a tax body within fifteen calendar days from the date of its submission shall:
      1) hand the document, confirming its residency in the form, established by an authorized body, to a person.
      The tax body shall confirm the residency of the person for each calendar year, specified in the tax application on confirmation of the residency within the limitation period, set by Article 46 of this Code;
      2) make the valid decision to refuse to confirm the residency of a person.
      A tax agent shall refuse to confirm the residency of a person in case of discrepancy of the person with the conditions, established by Article 189 of this Code.
      4-1. A tax body, which handed the document, confirming the residency, shall hand a duplicate of the document within fifteen calendar days from the date of submission of the application of a resident in case of its loss.
      5. If a resident believes that a taxation of income in a foreign state contradicts the provisions of the appropriate international agreement, he/she can apply to a competent body of the foreign state or an authorized body regardless of the protection, provided by internal legislation of the foreign state with an application on consideration of the issue on legality of application of the provisions of the international agreement in respect of taxation of his/her income.
      Footnote. Article 225 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2010); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 226. The procedure of mutual agreement

      1. A resident or a citizen of the Republic of Kazakhstan shall have the right to apply to an authorized body with an application on conducting the mutual agreement procedure with a competent body of a foreign state, with which the Republic of Kazakhstan has an international agreement, for consideration of the application on the provisions of the international agreement, if he/she believes that the actions of one or both agreeing states lead and will lead to taxation which does not correspond with the provisions of this international agreement.
      2. The application shall contain the circumstances, on which the requirements of a resident or a citizen of the Republic of Kazakhstan are based, and evidences, supporting these circumstances.
      A resident or a citizen of the Republic of Kazakhstan shall be obliged to attach copies of the accounting documents, confirming the amounts of the received (receivable) income and (or) withheld taxes (in case of their withholding) in a foreign state, with which the Republic of Kazakhstan has an international agreement, as well as the notarized copies of the following documents to this application:
      1) the contracts (agreements) on execution of works, provision of services or for other purposes;
      2) for legal entities - the founding documents or an extract from the trade register with specification of the founders (participants) and majority of the shareholders of a resident legal entity;
      3) the documents, specified in sub-paragraphs 1), 2) and 3) of paragraph 3 of Article 225 of this Code.
      A resident or a citizen of the Republic of Kazakhstan shall have the right to submit other documents which are not specified in this paragraph and which are necessary to conduct the mutual agreement procedure.
      3. An authorized body shall have the right to require in a written form a resident or a citizen of the Republic of Kazakhstan to submit additional documents, necessary to conduct the mutual agreement procedure.
      4. The application shall be submitted by a resident or a citizen of the Republic of Kazakhstan before the expiry of the limitation period, set by Article 46 of this Code from the date of appearance of the tax obligation, which does not correspond with the provisions with an international agreement, in a foreign state, unless other deadlines are provided by the international agreement.
      5. An authorized body shall send to a resident or a citizen of the Republic of Kazakhstan the written decision to refuse to consider an application by a registered letter within five working days from the date of submission of the application in the following cases:
      1) submission of an application by a nonresident or a citizen of the Republic of Kazakhstan to perform the mutual agreement procedure with a competent body of the state, with which the Republic of Kazakhstan has an international agreement;
      2) a resident or a citizen of the Republic of Kazakhstan submits an application after the deadline, established by paragraph 4 of this Article;
      3) a resident or a citizen of the Republic of Kazakhstan submits the documents, provided by paragraph 2 of this Article.
      In case that an authorized body refuses to consider an application on the ground, provided by sub-paragraph 3) of this paragraph, a resident or a citizen of the Republic of Kazakhstan shall have the right to re-apply within the deadline, set by paragraph 4 of this Article, if the resident or the citizen of the Republic of Kazakhstan eliminates the violations.
      6. Au authorized body shall consider an application of a resident or a citizen of the Republic of Kazakhstan within five calendar days from the date of receipt of this application, except for the cases, specified in paragraph 5 of this Article.
      7. One of the following decisions shall be made upon the results of considering an application of a resident or a citizen of the Republic of Kazakhstan:
      1) to refuse to perform the mutual agreement procedure;
      2) to perform the mutual agreement procedure.
      8. An authorized body shall make the decision to refuse to perform the mutual agreement procedure in the following cases:
      1) discrepancy of the grounds, specified in an application of a resident or a citizen of the Republic of Kazakhstan with the provisions of an international agreement of the Republic of Kazakhstan;
      2) submission of unreliable information by a resident or a citizen of the Republic of Kazakhstan;
      3) a resident or a citizen of the Republic of Kazakhstan does not submit the documents, specified by paragraph 3 of this Article when considering an application.
      The decision to refuse to perform the mutual agreement procedure shall be sent to a resident or a citizen of the Republic of Kazakhstan in a written form via a registered letter within two days from the date of the decision-making.
      9. In case of making the decision to perform the mutual agreement procedure, an authorized body shall send a request to a competent body of a foreign state on performing this procedure.
      10. An authorized body shall terminate the mutual agreement procedure with a competent body of a foreign state which was started on the basis of an application of a resident or a citizen of the Republic of Kazakhstan in the following case:
      1) the resident or the citizen of the Republic of Kazakhstan submits an application on termination of the mutual agreement procedure;
      2) the fact of provision of unreliable information by the resident or the citizen of the Republic of Kazakhstan was revealed when carrying out the mutual agreement procedure;
      3) the resident or the citizen of the Republic of Kazakhstan submits the documents, specified by paragraph 3 of this Article when carrying out the mutual agreement procedure;
      11. An authorized body shall send the information on the decision made upon the results of the mutual agreement procedure in a written form via a registered letter to a resident or a citizen of the Republic of Kazakhstan within seven days from the date of receipt of the final response on the issue of taxation of the income of this resident or citizen of the Republic of Kazakhstan from a competent body of a foreign state to the request of the authorized body.
      12. A person shall have the right to apply to an authorized body with an application to carry out the mutual agreement procedure with a competent body of the foreign state, with which the Republic of Kazakhstan has an international agreement on the status of residence.
      The application shall be submitted by this person to a tax body with attachment of the documents, specified in sub-paragraph 2) of paragraph 2 of this Article and sub-paragraph 1), 2) and 3) of paragraph 3 of Article 225 of this Code.
      For the purposes of this paragraph, the order of carrying out the mutual agreement procedure, established by paragraphs 1 - 11 of this Code, shall be applied.
      13. The decision, which was made upon the results of the mutual agreement procedure, performed on the basis of a request of a competent body of a foreign state, shall be sent by an authorized body in writing to a tax body, which sent one of the notifications, specified in sub-paragraphs 2) and 8) of paragraph 2 of Article of Article 607 of this Code, in connection with which a resident of the specified state initiated this procedure, to a taxpayer.
      The decision made upon the results of the mutual agreement procedure in the order, established by this Article, shall be obligatory performed by the tax bodies.
      Footnote. Article 226 is in the wording of the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 227. Assistance in tax collection

      1. For the purposes of fulfillment of the unfulfilled tax obligation, an authorized body shall have the right in accordance with the provisions of an international agreement to request assistance of a competent body of a foreign state by sending a tax request in the form, established by the authorized body. The tax request shall be sent to a competent body of a foreign state in case that a nonresident does not fulfill or incompletely fulfills the tax obligation from the income from the sources in the Republic of Kazakhstan and from income of a permanent establishment of the nonresident from the sources outside the Republic of Kazakhstan only after application of all possible measures of obligatory levy, established by this Code.
      2. An authorized body shall have the right to fulfill the tax obligation of a resident, appeared in a foreign state when receiving a request on assistance from a competent body of the foreign state. At that, the authorized body shall consider legality of payment of taxes from income of a resident from the sources in a foreign state in accordance with the provisions of an international agreement and shall make the conclusion.
      3. In case of the positive conclusion on a request of a competent body of a foreign state, an authorized body shall fulfill the tax obligations by a resident in accordance with the provisions of an international agreement in the order, established by this Code. The amount of the tax shall be transferred by the resident taxpayer on the request of the authorized body on an account of the competent body of the foreign state, specified in the request on assistance in the tax collection, sent according to the provisions of the international agreement.
      4. An authorized body shall consider the requests of a competent body of a foreign state on principles of reciprocity.
      5. The provisions of this Article shall be applied before the expiry of the limitation period, established by Article 46 of this Code, unless otherwise provided by an international agreement.

Article 227-1. The order of refund of the income tax, withheld at the source of payment from the income of a resident in the form of dividends on shares, which are the underlying asset of depositary receipts

      1. A tax agent shall have the right to exempt or apply the rate of the income tax, provided by this Code for residents when paying income in the form of dividends on shares, which are the underlying asset of depository receipts, to the final (actual) recipient (owner) of the income - to a resident through a nominal holder of depositary receipts under simultaneous fulfillment of the following conditions:
      1) presence of the list of holders of the depository receipts, containing:
      last names, names, patronymics (if there are ones) of individuals or the names of legal entities, which are the owners of the depository receipts, the underlying asset of which are the shares issued by a resident of the Republic of Kazakhstan;
      the information on the number and the of the depository receipts;
      the names and accessories of the documents, certifying identities of the individuals or numbers and dates of the state registration of the legal entities.
      The list of holders of the depository receipts shall be composed by the following persons:
      an organization which has the right to perform the depository activities in the securities market of the Republic of Kazakhstan in case, if an agreement on implementation of accounting and confirmation of the ownership rights for depository receipts is concluded between a resident - issuer of a share, which is the underlying asset of the depository receipts, and this organization;
      or another organization which has the right to perform the depository activities in the securities market of a foreign state in case, if an agreement on implementation of accounting and confirmation of the ownership rights for depository receipts is concluded between a resident - issuer of a share, which is the underlying asset of the depository receipts, and this organization;
      2) a certificate of a taxpayer of the Republic of Kazakhstan of a person - the final (actual) recipient (owner) of the dividends on shares which are the underlying asset of depository receipts.
      At that, a certificate of a taxpayer of the Republic of Kazakhstan shall be submitted to a tax agent no later than one of the dates, specified in paragraph 3 of Article 212 of this Code which comes last.
      2. A tax body shall be obliged to specify the amounts of accrued (paid) income and withheld, exempted from withholding taxes in accordance with this Code, the rates of the income tax in the tax reporting which is submitted to a tax body.
      At that, a tax agent shall be obliged to submit a notarized copy of a certificate of a resident taxpayer of the Republic of Kazakhstan to a tax body at the location of the taxpayer. The copy of this document shall be submitted within three calendar days from the date of submission of this tax reporting, the deadline for submission of which comes after the submission of this document to a tax agent by the resident on one of the dates, specified in paragraph 3 of Article 212 of this Code.
      3. In case that a tax agent does not apply the provisions of this Code when paying the income in the form of dividends on shares, which are the underlying asset of depository receipts, to a resident in the order, established by paragraph 1 of this Article, the tax agent shall withhold the income tax at the source of payment at the rate, established by Article 194 of this Code.
      The amount of the withheld income tax shall be transferable within the deadline, set by sub-paragraph 1) of paragraph 1 of Article 195 of this Code.
      4. The final (actual) recipient of the income - resident shall have the right to refund the overly withheld income tax at the source of payment in accordance with this Code in case if a tax agent transfers the income tax, withheld at the source of payment to the budget.
      At that, the resident shall be obliged to submit a notarized copy of the following documents to a tax agent:
      1) the document, confirming the ownership right for the shares which are the underlying asset of the depository receipts;
      2) a certificate of a taxpayer of the Republic of Kazakhstan for the period, in which the income in the form of dividends was received.
      The documents, specified in this paragraph shall be submitted by a resident before the expiry of the limitation period, set by Article 46 of this Code from the date of the last transfer of the income tax, withheld at the source of payment to the budget.
      At that, refund of the overly withheld income tax to a resident shall be performed by a tax agent.
      5. A tax agent shall have the right to submit the additional calculation of the income tax, withheld at the source of payment on the amount of decrease to a tax body at its location when applying the tax rate, defined for residents or exemption from taxation for the tax period, in which withholding and transfer of the income tax from income of the resident in the form of dividends on shares, which are the underlying asset of depository receipts, were performed.
      In the specified case, the set-off of the overpaid amount of the income tax, withheld at the source of income shall be performed to a tax agent in the order, specified by Article 599 of this Code.
      Footnote. The Chapter 27 is supplemented with Article 227-1 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

SECTION 8. VALUE-ADDED TAX

Chapter 28. BASIC PROVISIONS

Article 228. Payers

      1. Payers of the value-added tax are:
      1) the persons, on whom the registration for the value added tax in the Republic of Kazakhstan was performed:
      the individual entrepreneurs;
      the resident legal entities, except for the government bodies;
      the nonresidents working in the Republic of Kazakhstan through an affiliate, representative office;
      the trust managers who perform turnover for realization of goods, services on contracts on trust management with founders of the trust management or beneficiary in other cases of the trust management;
      2) The persons who import goods to the Republic of Kazakhstan in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan.
      2. The registration for the value-added tax shall be performed in accordance with Articles 568, 569 of this Code. Z080000100
      Footnote. Article 228 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 229. Taxation objects

      Objects of taxation by the value-added tax are:
      1) the taxable turnover;
      2) the taxable import.

Chapter 29. THE TAXABLE TURNOVER

Article 230. Determination of the taxable turnover

      1. The taxable turnover is a turnover, performed by a payer of the value-added tax:
      1) on realization of goods, works, services in the Republic of Kazakhstan, except for the nontaxable turnover, specified by Article 232 of this Code.
      2) on the purchase of works, services from a nonresident who is not a payer of the value-added tax in the Republic of Kazakhstan and who does not perform the activity through an affiliate, representative office.
      2. The remains of the goods (including those on the basic means, intangible and biological assets, investments in real estate), for which the value-added tax was attributed to the set-off in accordance with Article 256 of this Code when removing a person from the registration for the value-added tax, are the taxable turnover.
      The provisions of this paragraph shall not be applied when removing a person from the registration for the value-added tax in connection with its reorganization when fulfilling the condition that all newly created, in the result of merger of a legal entity, legal entities or a legal entity, to which other legal entity (legal entities) are joined, are payers of the value-added tax after reorganization.
      Footnote. Article 230 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011).

Article 231. Turnover for realization of goods, works, services

      1. Turnover for realization of goods is:
      1) the transfer of the ownership rights for property, including:
      sale of goods;
      sale of a whole enterprise as the property complex;
      shipping of goods, including exchange for other goods, works, services;
      gratuitous transfer of goods;
      transfer of goods by an employer to an employee on account of salaries;
      transfer of the pledged property (goods) by a pledger in case of nonpayment of the debt;
      1-1) The export of goods
      2) shipping of goods on conditions of the deferred payment;
      3) transfer of property to the financial leasing;
      4) shipping of goods under a commission agreement;
      5) excluded by the Law of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009);
      6) the return of goods in the customs procedure of re-import previously taken out in the customs procedure of export.
      2) Turnover on realization of works, services shall mean another execution of works or provision of services, and any other activity for a remuneration which is different from realization of goods, including:
      1) provision of property to temporary ownership and use under the contracts of property lease;
      2) provision of the rights for objects of intellectual property;
      3) execution of works, provision of services by an employer to an employee on the account of salaries;
      4) concession of the rights of claim related to realization of goods, works, services, except for advances and penalties;
      5) an agreement to limit or terminate entrepreneurial activity;
      6) provision of a credit (loan, micro-credit).
      3) The following are not the turnover on realization:
      1) transfer of property as a contribution to the authorized capital;
      2) return of property, received as a contribution to the authorized capital;
      3) gratuitous transfer or gift of goods for advertising purposes, the unit cost of which does not exceed 2-fold of the monthly calculation index, established by the Law on the Republican Budget and operating on the date of the transfer or the gift of goods;
      4) shipping of tolling goods by a customer to a contractor for production, processing, assembly (mounting, installation), reparation of the finished goods and (or) construction of objects by the latter. In case of production, processing, assembly, reparation outside the Customs Union, shipping of the specified goods shall not be the turnover on realization, if their export was performed in the customs procedure of processing outside the Customs Union in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan;
      5) shipping of returnable containers. Returnable containers are the containers, the cost of which shall not be included in the cost of realization of the supplied products and which is returnable to a supplier on the conditions and within the period, established by a contract (agreement) on supply of this production but not more than the period, duration of which is six months. If the containers were not returned to the authorized capital within the established period, the cost of these containers shall be included in the turnover on realization;
      6) the return of goods, except for the return of goods in the customs procedure of re-import, previously taken in the customs procedure of export;
      7) the export of goods outside the Customs Union for holding exhibitions, other cultural and sports events, which are subjected to re-import on the conditions and within the periods, established by a contract, if this export was formalized in the customs procedure of temporary export in accordance with the tax legislation of the Customs union and (or) the tax legislation of the Republic of Kazakhstan;
      8) transfer of the property, newly created and (or) purchased by a subsoil user, which is used to conduct mining operations and which is subjected to transfer to the Republic of Kazakhstan in accordance with the conditions of a concluded contract on subsoil user by the subsoil user;
      9) placement of the issued securities by an issuer;
      10) transfer of the basic means, intangible and biological assets and other property of a legal entity undergoing reorganization to its legal successor (legal successors);
      11) transfer of an object of concession to a concedent, and further transfer of an object of concession to a concessionaire (a legal successor or a legal entity specially solely created by the concessionaire for realization of the concession contract) for exploitation under the concession contract;
      12) the turnover on realization of the personal property of an individual, if this property is not used by this person for the purposes of entrepreneurial activities;
      13) transfer of property by a founder of an entrusted administration to an entrusted administrator under a contract on the entrusted administration of property or beneficiary in other cases of entrusted administration;
      14) return of the property by an entrusted administrator during termination of the document, which is the basis for creation of the entrusted administration;
      15) transfer of net income by an entrusted administrator from an entrusted administration to a founder of the entrusted administration under a contract on entrusted administration of property or beneficiary in other cases of the entrusted administration;
      16) receipt of the amount of remuneration by a depositor (client), calculated and (or) paid to him/her under the contracts of bank account and (or) bank deposit.
      Footnote. Article 231 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (see the order of enforcement in Article 2); dated 30.06.2010 No. 297-IV (see the order of enforcement in Article 2); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 232. Nontaxable turnover

      Nontaxable turnover is the turnover on realization of goods, works, services:
      1. except from the value-added tax in accordance with this Code;
      2. a place of realization of which is not the Republic of Kazakhstan.
      Unless otherwise provided for by this Article, a place of realization of goods, works, services shall be determined in accordance with Article 236 of this Code.
      A place of realization of goods, works, and services in the Customs Union shall be determined in accordance with Article 276-5 of this Code.
      Footnote. Article 232 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 233. Turnovers on realization (purchase), performed under the agency agreements

      1. Realization of goods, execution of works or provision of services, and purchase of goods, works and services by an attorney on behalf and at the expense of a grantor, shall not be the turnover on realization (purchase) of the attorney.
      2. The provisions of paragraph 1 of this Article shall be not applied to:
      1) excluded by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011);
      2) realization of the goods, received from a nonresident grantor, who is not a payer of the value-added tax in the Republic of Kazakhstan and who does not work through an affiliate, representative office. In this case, shipping of goods shall not be the turnover on realization of an attorney;
      3) realization of the goods, execution of works, provision of services, and purchase of goods, works and services by an operator in the cases, specified by paragraph 3 of Article 271-1 of this Code.
      Footnote. Article 233 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (see the order of enforcement in Article 2).

Article 233-1. Turnovers on realization, performed on the conditions, corresponding with the conditions of a commission agreement

      1. realization of the goods, execution of works, provision of services on the conditions, meeting the requirements of the commission agreement, shall not be the turnover on realization of a broker.
      2. The provisions of paragraph 1 of this Article shall not be applied to realization of goods, received from a nonresident grantor, who is not a payer of the value-added tax in the Republic of Kazakhstan and who does not work through an affiliate, representative office. In this case, realization of goods shall be the turnover on realization of a broker.
      Footnote. The Code is supplemented with Article 233-1 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011).

Article 234. Turnovers on realization (purchase), performed under the contracts of trust management

      Realization of goods, execution of works, provision of services, purchase of goods, works, services, performed by an entrusted administrator under a contract on entrusted administration or other document which is the ground for appearance of an entrusted administration, shall be the turnover on realization (purchase) of the entrusted administrator.
      Footnote. Article 234 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011).

Article 235. Turnovers on realization (purchase), performed under the agreements on joint activity

      1. In cases, if realization of goods, works and services is performed by an attorney on behalf and (or) on the instructions of a participant (participants) of an agreement on joint activity:
      1) an invoice is issued on behalf of one of the participants of the agreement on joint activity or on behalf of the attorney with specification of the details of the agreement’s participant (participants) on joint activity in the line, assigned for a supplier (seller);
      2) the total amount of a turnover and the amount of the turnover per each participant in accordance with the conditions of the agreement on joint activity when issuing invoices shall be reflected.
      2. The original of an invoice shall be issued to a buyer of goods, works and services as well as to each participant of an agreement on joint activity.
      3. In case if a participant (participants) of an agreement on joint activity or an attorney buys goods, works or services within this activity, the invoices, received from a supplier (seller) shall mark out:
      1) the details of the participant (participants) of an agreement on joint activity according to the number of participants of the joint activity or the attorney;
      2) the amounts of purchase, including the amount of the value-added tax, per each participant of an agreement on joint activity.
      4. The number of the issued originals of invoices in these cases shall correspond with the number of participants of an agreement on joint activity, for which the goods, works, services are purchased.
      5. The provisions of this Article shall not be applied in realizing (purchasing) goods, works, services by an operator in the cases, specified by paragraph 3 of Article 271-1 of this Code.
      Footnote. Article 235 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2009).

Article 236. A place of realization of goods, works, services

      1. A place of realization of goods is a place of:
      1) the beginning of goods transportation, if goods are transferred (sent) by a supplier, recipient or a third person;
      2) in other cases - a place of transfer of goods to a buyer.
      2. A place of realization of works, services is a place of:
      1) location of a real estate, if works, services are directly connected with this property.
      A location of a real estate is a place of the state registration of the rights for the real estate or an actual location - in case of absence of the obligation for the state registration of this property.
      For the purposes of this Article, a real estate is the buildings, constructions, perennial plants and other property, closely linked to land, i.e. objects, moving of which is impossible without disproportionate damage to their purpose, and pipelines, power lines, space objects, an enterprise as the property complex. At that, for the purposes of this Article, property which is not attributed to real estate in this sub-paragraph shall be recognized as movables;
      2) actual execution of works, services, unless they are not connected with movables.
      These works shall include: mounting, assembly, repair, maintenance;
      3) actual provision of services, if these services are related to services in the sphere of culture, entertainment, science, education, physical culture or sports.
      For the purposes of this sub paragraph, entertainment services shall include the services of entertainment and leisure purpose, provided in entertainment venues (casinos, night clubs, cafes, bars, restaurants, internet cafes, computer, billiard, bowling clubs and cinema theaters, and other buildings, premises, facilities);
      4) conduction of the entrepreneurship activities or any other activity of a buyer of works, services.
      Unless otherwise provided by this sub-paragraph, a place of conducting the entrepreneurship activities or other activity of a buyer of works, services, shall be the territory of the Republic of Kazakhstan in the presence of the buyer of works, services in the territory of the Republic of Kazakhstan on the basis of the state registration in judicial bodies or on the basis of the registration in the tax bodies as an individual entrepreneur.
      In case, if a buyer of works, services is a nonresident and a recipient is its affiliate or a representative office, the state registration of which was performed in judicial bodies of the Republic of Kazakhstan, the Republic of Kazakhstan shall be the place of realization.
      The provisions of this sub-paragraph shall be applied to the following works, services:
      transfer of the rights to use objects of intellectual property;
      consulting, auditing, engineering, design, marketing, legal, accounting, law, advertising services, and services for provision and (or) processing of the information, except for distribution of products of mass media and granting the access to the mass information, placed on an internet resource;
      provision of personnel;
      leasing of movables (except for vehicles);
      services of an agent for purchasing goods, works, services, and engaging persons for provision of the services, provided, by this sub-paragraph on behalf of the main participant of an agreement (contract);
      communication services;
      an agreement to limit or to terminate the entrepreneurial activity for a remuneration;
      radio and television services;
      services for organization of tourism;
      services for provision of leasing and (or) use of freight wagons and containers;
      5) conducting the entrepreneurial or any other activity of a person, who executes works, provides services which are not provided by sub-paragraphs 1) - 4) of this paragraph and paragraph 4 of this Article.
      A place of conducting the entrepreneurial activity or other activity of a person, who performs works, provides services which are not provided by paragraphs 1) - 4) of this paragraph shall be the Republic of Kazakhstan in the presence of this person in the territory of the Republic of Kazakhstan on the basis of the state registration in judicial bodies or on the basis of the registration in the tax bodies as an individual entrepreneur.
      3. If realization of goods, works, and services is auxiliary towards realization of other basic goods, works, services, a place of this auxiliary realization shall be the place of realization of basic goods, works, and services.
      4. A place of realization of works, services shall not be the Republic of Kazakhstan when providing services for transportation of passengers and luggage, transportation of goods, including mail, under simultaneous compliance with the following conditions:
      the passengers, the transported goods (mail, luggage) shall not be imported into the territory of the Republic of Kazakhstan;
      the passengers, the transported goods (mail, luggage) shall not be exported outside the territory of the Republic of Kazakhstan;
      the passengers shall not be transported, the goods (mail, luggage) shall not be transported through the territory of the Republic of Kazakhstan.
      5. A place of execution of works or provision of services, specified in more than one sub paragraph shall be determined by the first in the order out of these sub-paragraphs when applying paragraph 2 of this Article.
      Footnote. Article 236 as amended by the Laws of the Republic of Kazakhstan dated 10.07.2009 No. 178-IV; dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011).

Article 237. The date of performing the turnover on realization

      1. Unless otherwise provided by this Article, the date of performing the turnover on realization of goods is:
      the date of transfer of goods in accordance with the conditions of an agreement in its location to a buyer or a person, determined by him/her, who delivers the goods, or his/her trustee, if the goods must be transferred to the location;
      the date of transfer of goods to a buyer or his/her trustee in the place, specified by the conditions of an agreement, unless a seller’s obligation to deliver goods to a buyer’s location is not provided for.
      The date of the turnover on realization of works, services is the date of execution of works, provision of services.
      At that, the date of execution of works, provision of services shall be the date of execution of works, provision of services, specified in a signed:
      document (except for invoices), conforming the fact of execution of works, provision of services and which is formalized in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting and (or) the legislation of the Republic of Kazakhstan on transport and (or) agreements (contracts) in the sphere of cooperation of railways when transporting cargoes by railway transport, signed between the Republic of Kazakhstan and other states.
      1-1. The date of execution of works, provision of services shall be the earliest date when having more than one date of execution of works, provision of services in the documents, specified in the second, third sub-paragraph of the third part of paragraph 1 of this Article.
      In case the documents, specified in the second, third sub-paragraph of the third part of paragraph 1 of this Article do not specify the date of execution of works, provision of services, the date of execution of works, provision of services shall be the date of formalizing the documents, specified in the second, third sub-paragraphs of the third part of paragraph 1 of this Article.
      2. In case shipping of goods is not performed, the date of the turnover on realization shall be the date of transfer of the ownership right for the goods to a recipient.
      3. In case of taking out of goods in the customs procedure of export, the date of the turnover on realization of goods shall be:
      1) the date of actual crossing the border of the Customs Union at a checkpoint, determined in accordance with the tax legislation of the Customs Union and (or) the tax legislation of the Republic of Kazakhstan;
      2) the date of customs declaring the full customs declaration with the marks of a tax body, which performed the customs declaring in the following cases:
      in case of taking out of goods in the customs procedure of export with application of the periodic customs declaring procedure;
      in case of taking out of goods in the customs procedure of export with application of the temporary customs declaring procedure.
      3-1. In case of taking out of goods in the re-import regime, which were previously taken out in the regime of export, the date of the turnover on realization of goods shall be:
      1) the date of actual crossing of the customs border of the Republic of Kazakhstan in a checkpoint when taking out goods in the export regime without application of the procedure of the periodical or the temporary declaring, which is determined in accordance with the tax legislation of the Republic of Kazakhstan;
      2) the date of formalization of the full cargo customs declaration with the Footnotes of a tax body, which performed the tax formalization when taking out goods in the export regime with application of the periodical or the temporary declaring procedure.
      4. The date of the turnover on realization for a pledger shall be the one of the following dates, which leads to the following when transferring the pledged property (goods):
      1) the date of transfer of the ownership right for the subject of pledge from the pledger to a winner of the auction, held in the process of foreclosure on the pledged property;
      2) the date of transfer of the ownership right for the subject of pledge from the pledger to a pledge, if the trading was declared invalid.
      5. The date of the turnover on realization on the taxable turnover, specified in paragraph 2 of Article 230 of this Code when removing from the registration for the value-added tax shall be:
      1) the date when a payer of the value-added tax submitted a tax application on removal from the registration for the value-added tax or the tax application, specified in Articles 37 - 43 of this Code;
      2) the date specified in paragraph 6 of Article 571 of this Code when removing from the registration for the value-added tax under the decision of a tax body.
      6. The date of the turnover when a lessor transfers property which is receivable by a lessee as the basic means, investments in real estate, biological assets to the financial leasing, except for the transfer under a contract of leaseback, shall be:
      1) the maturity date of receiving a periodical leasing payment by a lessor, established by a contract on financial leasing, except for the cases, specified in sub-paragraph 2) and 3) of this paragraph;
      2) in case, if the maturity date of receiving a periodical leasing payment by a lessor is established before the date of transfer of the property to a lessee under a contract on financial leasing, the date of the turnover shall be the date of the property transfer to the financial leasing;
      3) the date of the final payment shall be the last date of the turnover on realization under a contract on financial leasing when a lessor early repays the leasing payments, provided by this contract on financial leasing.
      7. The date of the turnover on realization when a lessor transfers property which is receivable by a lessee (seller) as the basic means, investments in real estate, biological assets under a contract of leaseback of property, shall be the date of the property transfer to the financial leasing.
      8. The date of the turnover on realization when there are no documents, specified in the second, third sub-paragraph of the third part of paragraph 1 of this Article within a calendar year, shall be the date which comes first:
      1) the date of issuing an invoice with the value-added tax;
      2) the date of receiving of each payment (regardless of the form of payment).
      9. In case of purchase of works, services from a nonresident who is not a payer of the value-added tax in the Republic of Kazakhstan and who works through an affiliate, representative office, the date of the turnover on purchase shall be the date of execution of works, provision of services, specified in a signed:
      act of executed works, provided services;
      document, confirming the fact of execution of works, provision of services, which is certified in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting and (or) the legislation of the Republic of Kazakhstan on transport and (or) contracts (agreements) in cooperation of railways when transporting cargoes by railway transport, signed between the Republic of Kazakhstan and other states.
      In case if the documents in the second, third sub-paragraphs of the first part of this paragraph do not specify the date of execution of works, provision of services, the date of execution of works, provision of services shall be the date of formalization of the documents, specified in the second, third sub-paragraphs of the first part of this paragraph.
      When there is more than one date of execution of works, provision of services in the documents, specified in the second, third sub-paragraphs of the first part of this paragraph, the date of execution of works, provision of services shall be the earliest date.
      Footnote. Article 237 as amended by the Law of the Republic of Kazakhstan dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2012).

Chapter 30. DETERMINATION OF THE AMOUNT OF THE TAXABLE TURNOVER

Article 238. The amount of the taxable turnover

      1. The amount of the taxable turnover shall be determined on the basis of the cost of the realized goods, works, services on the basis of the prices and tariffs applied by parties of a transaction without including the value-added tax in them, unless otherwise provided by this Article and the legislation of the Republic of Kazakhstan on transfer pricing.
      2. The amount of the taxable turnover shall be determined on the basis of the price level as of the date of the turnover on realization without including the value-added tax in them but no lower than the balance cost of gratuitously transferring goods and in the cases, specified by paragraph 2 of Article 230 of this Code.
      For the purposes of this paragraph, the balance cost is the cost of the goods reflected in the accounting on the date of their realization.
      3. In concession of the rights of claim for the realized goods, works, services, which are taxable by the value-added tax, except for advances and penalties, the amount of the taxable turnover shall be determined as the positive disparity between the cost of the right of claim, on which a concession was made, and the cost of the claim, which shall be received from a debtor on the date of the concession of the right of claim, according to the primary documents of a taxpayer.
      3-1. In the cases, specified by sub-paragraph 5) and 6) of paragraph 2 of Article 231 of this Code, the amount of the taxable turnover shall be determined on the basis of a remuneration.
      4. The amount of the taxable turnover from a lessor shall be determined on the basis of the cost of the realized pledge property (goods) but not lower than the amount of borrowings which are received against collateral of this property (goods) without including the value-added tax in them in transferring the pledge property (goods) by the lessor.
      5. The amount of the taxable turnover shall be determined in accordance with paragraph 1 of this Article, taking into account all the due payments, provided by the conditions of a contract when realizing goods on the conditions of an installment payment.
      6. The amount of the taxable turnover shall include the commissions when providing services, related to prepay for third parties.
      7. Unless otherwise provided by this paragraph, the amount of the taxable turnover shall include the amount of the excise duty on excisable goods.
      The amount of the taxable turnover shall not include the amount of an excise under simultaneous observance of the following conditions:
      1) the goods shall be the product of processing, specified in sub-paragraph 5) of Article 279 of this Code made of crude oil transferred to a processor on a give-and-take basis;
      2) payment of the amount of the excise shall be performed by a person who produced the excisable goods, specified in sub-paragraph 5) of Article 279 of this Code from the crude oil, transferred on a give-and-take basis.
      8. The amount of the taxable turnover shall be determined as the positive disparity between the cost of realization of the balance cost of goods, determined in accordance with paragraph 2 of this Article when realizing goods, on which the value-added tax specified in invoices issued when purchasing these goods, shall not be attributed to the set-off in accordance with the legislation of the Republic of Kazakhstan, operating on the date of their purchase.
      9. The turnover on realization shall be determined as the increase of value when realizing lands in the order, specified by Article 87 of this Code when transferring the right of ownership and (or) use and (or)disposal of a land, purchased without the value-added tax.
      10. When transferring property to the financial leasing which shall be received by a lessee in the form of the basic means, investments in real estate, biological assets, except for the transfer under a contract of leaseback, the amount of the taxable turnover shall be determined:
      1) on the date of the turnover, specified in sub paragraph 1) of paragraph 6 of Article 237 of this Code on the basis of the amount of the leasing payment, established in accordance with the contract on financial leasing without including the amount of a remuneration and the value-added tax in it;
      2) on the date of the turnover, specified in sub paragraph 2) of paragraph 6 of Article 237 of this Code on the basis of the amount of all the periodic leasing payments without including the amounts of a remuneration and the value added tax in them, the maturity date of receipt of which in accordance with the contract on financial leasing shall be established before the date of the property transfer to a lessee;
      3) on the date of the turnover, specified in sub paragraph 3) of paragraph 6 of Article 237 of this Code as the disparity between the total amount of all leasing payments which are receivable under the contract on financial leasing without including the amount of a remuneration and the value added tax in them and the amount of the taxable turnover which is determined as the amount of taxable turnovers, attributable to the previous date of the turnover on realization in accordance with this contract.
      11. The amount of the turnover shall be determined in accordance with paragraph 1 of this Article when transferring property under a contract of leaseback which is receivable by a lessee (seller) in the form of the basic means, investments in real estate, biological assets.
      12. The amount of the taxable turnover from a forwarder shall be determined on the basis of his/her remuneration when providing services under a contract of freight forwarding.
      13. When selling the whole enterprise as the property complex, the amount of the taxable turnover shall be determined in the basis of the balance cost of property, transferred when selling an enterprise as the property complex, on which the value-added tax was previously set off:
      1) increased by the positive disparity between the cost of realization under a contract of purchase (of sale) of the enterprise and the balance cost of the transferred assets, reduced by the balance cost of the transferred obligations upon the data of the accounting on the date of realization;
      2) reduced by the negative disparity between the cost of realization under a contract of purchase (of sale) of the enterprise and the balance cost of the transferred assets, reduced by the balance cost of the transferred obligations upon the data of the accounting on the date of realization.
      14. The amount of the taxable turnover of an attorney shall be determined on the basis of his/her remuneration when realizing goods, executing works, providing services by the attorney on behalf and at the expense of a grantor.
      15. The amount of the taxable turnover of a broker shall be determined on the basis of his/her commission when realizing goods, executing works, providing services on the conditions, meeting the requirements of a commission contract.
      16. The amount of the taxable turnover shall be determined on the basis of the cost attributable to the realized periodical publications and other media products in the reporting tax period, when realizing, including those placed on the internet site in public telecommunication networks.
      17. In case of inobservance of the requirements, established by Article 78 of this Code, the amount of the exempted turnover when transferring property to the financial leasing, shall be recognized as taxable from the date of the turnover, specified in paragraph 6 of Article 237 of this Code.
      18. The amount of the taxable turnover of a taxpayer, who previously took out goods in the export regime, when bringing in goods in the re-import regime, shall be determined proportionally to the volume of the imported goods in units of measure which are applied when formalizing export on the basis of the cost of these goods, on which the turnover on realization of goods for export was reflected in the declaration of the value-added tax.
      19. For the purposes of this part, an operation in a foreign currency shall be converted to the national currency of the Republic of Kazakhstan - tenge with application of the market exchange rate on the date of turnover.
      20. Unless otherwise provided by this Code, the provisions of this part on determination of the amount of the taxable turnover (including its adjustment) shall also be applied when determining the amount of the nontaxable turnover.
      Footnote. Article 238 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 239. Adjustment of the amount of the taxable turnover

      1. In case if the cost of the realized goods, works, services is changed in either direction, the amount of the taxable turnover shall be adjusted in the appropriate manner.
      2. Adjustment of the amount of the taxable turnover from a taxpayer shall be performed in the cases:
      1) of full or partial return of goods, except for bringing in goods in the re-import regime, previously taken out in the regime of export;
      2) of changes in the conditions of a transaction;
      3) of changes in price, compensation for the realized goods, works and services;
      4) of mark downs, discounts on sales;
      5) of receiving the difference in the cost of goods and services when they are paid in the national currency;
      6) of return of containers, included in the turnover on realization in accordance with sub paragraph 5) of paragraph 3 of Article 231 of this Code.
      3. In accordance with this Article, adjustments of the amount of the taxable turnover shall be made when simultaneously observing the following conditions:
      1) presence of the documents which are the basis for adjustments in the cases, specified in paragraph 2 of this Article;
      2) presence of an additional invoice which contains the negative (positive) value on the taxable turnover and the value-added tax.
      Adjustment of the amount of the taxable turnover towards reduction shall not exceed the amount of the previously reflected taxable turnover on realization of these goods, execution of these works, and provision of these services.
      4. Adjustment of the amount of the taxable turnover in accordance with this Article shall be performed in the tax period, in which the cases, specified in paragraph 2 of this Article occurred.
      The amount of adjustment of the value-added tax in accordance with this Article shall be determined at the rate which operates on the date of the turnover on realization.
      Footnote. Article 239 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No. 167-IV (shall be enforced from 01.01.2009); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2009).

Article 240. Adjustment of the amount of the taxable turnover on doubtful claims

      1. If a part or a whole amount of claim for the realized goods, works, services is a doubtful claim, a payer of the value-added tax shall have the right to reduce the amount of the taxable turnover on this request in the following cases:
      1) after three years from the beginning of a tax period, in which the value-added tax was accounted, related to appearance of the doubtful claims;
      2) in the tax period, in which the decision of judicial bodies to exclude a debtor, recognized as bankrupt from the State Register of Legal Entities, was made.
      Adjustment of the amount of the taxable turnover in accordance with this paragraph shall be performed when observing the conditions, specified in Article 105 of this Code.
      2. Reduction of the amount of the taxable turnover on a doubtful claim shall be performed within the amount of the previously reflected taxable turnover on realization of goods, execution of works, and provision of services with application of the rate on the value-added tax which operates on the date of the turnover on realization.
      3. In case of receiving payment for the realized goods, works, services after a payer of the value added tax used the right provided to him/her in accordance with paragraph 1 of this Article, the amount of the taxable turnover shall be subjected to increase by the cost of the specified payment in the tax period, in which the payment was received.
      Footnote. Article 240 as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Article 241. The taxable turnover when purchasing works, services from a nonresident who is not a payer of the value-added tax in the republic of Kazakhstan and who does not work through an affiliate, representative office

      1. Works, services provided by a nonresident who is not a payer of the value-added tax in the Republic of Kazakhstan and who does not work through an affiliate, representative office shall be the turnover of a taxpayer of the Republic of Kazakhstan who receives works, services or a place of their realization is the Republic of Kazakhstan and they shall be taxable by the value-added tax in accordance with this Code.
      2. For the purposes of this Article, the amount of the taxable turnover from a recipient of works, services shall be determined on the basis of the cost of the purchased works, services, specified in paragraph 1 of this Article, including taxes, except for the value-added tax.
      3. The amount of the value-added tax, payable in accordance with this Article, shall be determined by applying the rate, established by paragraph 1 of Article 268 of this Code to the amount of the taxable turnover. In case, when payment for received works, services is made in a foreign currency, the taxable turnover shall be converted to tenge at the market exchange rate on the date of the turnover.
      4. The amount of the value-added tax, calculated in accordance with paragraph 3 of this Article shall be paid no later than the deadline for submission of the declaration for the value-added tax, established by Article 270 of this Code.
      5. A payment document or a document, issued by a tax body in the form, established by an authorized body which confirms payment of the value-added tax in accordance with this Article, shall give the right for the set-off of the amount of the tax in accordance with Article 256 of this Code.
      6. The provisions of this Article shall not be applied, if:
      1) the provided works, services are the works, services, listed in Article 248 of this Code;
      2) the cost of the works, services, specified in paragraph 1 of this Article is included in the customs cost of the imported goods which is determined in accordance with the customs legislation of the Republic of Kazakhstan, on which the value-added tax for the imported goods was paid to the budget of the Republic of Kazakhstan and shall not be returned in accordance with the tax legislation of the Republic of Kazakhstan.
      3) the works and services are provided:
      to the autonomous education organizations, specified in sub-paragraphs 2) and 3) of paragraph 1 of Article 135-1 of this Code;
      to the autonomous education organizations, specified in sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code on thes of activity, determined by sub-paragraphs 4) and 5) of paragraph 1 of Article 135-1 of this Code.
      Footnote. Article 241 as amended by the Laws of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2012).

Chapter 31. TURNOVERS TAXABLE AT THE ZERO RATE

Article 242. Export of goods

      The turnover on realization of goods on export shall be taxable at the zero rate.
      Export of goods shall be the taking out of goods from the customs territory of the Customs Union, performed in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan.
      Footnote. Article 242 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 243. Confirmation of export of goods

      1. The documents confirming export of goods are:
      1) an agreement (contract) on supply of the exported goods;
      2) a copy of the declaration on goods with marks of a tax body, which performs production of goods in the customs procedure of export and with a mark of a tax body, located in a checkpoint on the customs border of the Customs Union, except for the cases, specified in sub-paragraph 3) of this Article;
      3) a copy of the full declaration on goods with marks of a tax body which performed the tax declaring in the following cases:
      when taking out goods in the customs procedure of export by a system of pipelines or power transmission lines;
      when taking out goods in the customs procedure of export with application of the procedure of the periodical customs declaring;
      when taking out goods in the customs procedure of export with application of the procedure of the temporary customs declaring;
      4) the copies of shipping documents.
      In case of taking out goods in the tax procedure of export by a system of pipelines or by power transmission lines, the delivery and acceptance of the goods’ certificate shall be submitted instead of the copies of the shipment documents;
      5) confirmation of an authorized government body in protection of intellectual property rights on the rights for an object of intellectual property and its cost - in case of export of the object of intellectual property.
      2. In case of performing further export of goods which were previously taken out outside the territory of the Customs Union in the customs procedure of processing outside the customs territory or products of their processing, confirmation of export shall be performed in accordance with paragraph 1 of this Article and on the basis of the following documents:
      1) a copy of the goods declaration, in accordance with which a change in the customs procedure of processing outside the customs territory to the customs procedure of export was made;
      2) a copy of the goods declaration, formalized in the tax procedure of processing outside the customs territory;
      3) a copy of the goods declaration, formalized when importing the goods to the territory of a foreign state in the customs procedure of processing in the customs territory (processing of goods for domestic consumption), certified by a tax body which performed this formalization;
      4) a copy of the goods declaration, in accordance with which a change in the customs procedure of processing for domestic consumption in the territory of a foreign state to the customs procedure of production for domestic consumption in the territory of the foreign state or to the customs procedure of export.
      Footnote. Article 243 as amended by the Laws of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2011).

Article 244. Taxation of the international transportation

      1. The turnover on realization of the following services shall be taxable at the zero rate:
      1) transportation of goods, including mail, which are exported from the territory of the Republic of Kazakhstan and imported to the territory of the Republic of Kazakhstan;
      2) transportation of transit cargoes through the territory of the Republic of Kazakhstan;
      3) transportation of passengers and luggage through the international transportation.
      2. For the purposes of paragraph 1 of this Article, transportation shall be international, if formalization of transportation is performed by using the uniform international shipping documents, established by paragraph 3 of this Article.
      In case of the carriage of passengers from the Republic of Kazakhstan, unless otherwise provided in this paragraph, export goods along the territory of the Republic of Kazakhstan by several transport organizations, the origin for the carriage of passengers, transportation of goods (post, luggage) by the transportation company, which carries out the transportation up to the border of the Republic of Kazakhstan.
      In case of the carriage of passengers to the territory of the Republic of Kazakhstan, unless otherwise provided, import of goods (post, luggage) by several transport organizations, a carriage is an international, realizing by the transport organization, by means of transport, in which the passengers, goods (post, luggage) were imported to the territory of the Republic of Kazakhstan.
      3. For the purposes of this Article, the uniform international shipping documents are:
      1) when transporting cargoes:
      in international road communications - a waybill;
      in international and interstate communications by railway transport - a uniform model invoice;
      by air transport - a freight bill;
      by sea transport ??- a bill of lading or a sea waybill;
      by a system of pipelines:
      a copy of the declaration of goods, placed under the customs procedure of export and production for domestic consumption for a billing period or the declaration of goods, placed under the customs procedure of customs transit for a billing period;
      acts of execution of works, delivery and acceptance certificate for goods from a seller or from other persons who previously performed delivery of the specified cargoes to a buyer or to other persons who perform further delivery of the specified cargoes;
      invoices;
      2) when transporting passengers and luggage:
      by motor vehicles:
      in regular transportations - a report on sale of travel tickets, sold in the Republic of Kazakhstan and paysheets on passenger tickets, composed by bus stations (coach station) along the route;
      in irregular transportations - the list of passengers;
      by railway transport:
      a report on sale of travel tickets, shipping and mailing documents, sold in the Republic of Kazakhstan;
      paysheets on passenger tickets, sold in the Republic of Kazakhstan in international communications;
      the balance sheet on mutual settlements for passenger transportation between railway administrations and a report on formalization of travel and transportation documents;
      by air transport:
      the general declaration;
      a passenger manifest;
      a cargo manifest;
      loggia (center-boot schedule);
      the combined load manifest (travel ticket and baggage check).
      Footnote. Article 244 as amended by the Laws of the Republic of Kazakhstan dated 16.11.2009 No. 200-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2011); dated 22.06.2012 No. 21-V(shall be enforced from 01.01.2011).

Article 244-1. Taxation of realization of fuels and lubricants, performed by airports when refueling aircrafts of foreign airlines, performing international flights, international air transportations

      1. The turnover on realization of fuels and lubricants which is performed by airports when refueling aircrafts of foreign airlines, performing international flights, international air transportations shall be taxable at the zero rate.
      The provisions of this Article shall be applied to airports which realize fuels and lubricants when refueling aircrafts of international airlines, performing international flights, international air transportations.
      2. For the purposes of this Article:
      1) international airlines are the airlines of a foreign state, including member-states of the Customs Union;
      2) an international flight is a flight of an aircraft, in which the aircraft crosses the border of a foreign state;
      3) an international air transportation is an air transportation, when performing which the points of departure and destination (regardless of whether or not there is a break in the transportation or transshipment) shall be located:
      in the territory of two or more states;
      in the territory of one state, unless there is a stop in another state.
      The provisions of the third sub-paragraph of sub-paragraph 3) of the first part of this paragraph shall not be applied, if the points of departure and destination are the Republic of Kazakhstan.
      3. The documents confirming turnovers which are taxable at the zero rate when realizing fuels and lubricants which is performed by airports when refueling aircrafts of foreign airlines performing international flights, the international air transportations shall be:
      1) a contract of an airport with an foreign airline which provides and (or) includes realization of fuels and lubricants - when performing regular flights;
      an application of a foreign airline and (or) a contract (agreement) of an airport with the foreign airline - when performing regular flights.
      At that, the application shall include the following information:
      the name of an airline with specification of the state, in which it was registered;
      the date of intended landing of an aircraft.
      The application, provided by this paragraph shall not be submitted when landing of a foreign aircraft due to force majeure circumstances.
      For the purposes of this Code:
      a regular flight is a flight which is performed according to the schedule, approved in the order, established by the legislation of the Republic of Kazakhstan on use of air space of the Republic of Kazakhstan and aviation activities;
      an irregular flight is a flight which does not meet the definition of a regular flight;
      2) request for refueling of a foreign aircraft that shall specify the following information:
      the name of an airline;
      the number of the requested fuels and lubricants;
      the date of refueling of the aircraft;
      signatures of the aircraft commander or a representative of a foreign airline and an official of the appropriate airport service which performs the refueling;
      3) the copies of the transport (transportation), commercial and (or) other documents with mark of a custom body, confirming refueling with fuels and lubricants of foreign aircrafts which perform international flights, international air transportations - in cases of refueling international aircrafts, which perform international flights, international air transportations, except flights, in regard to which in accordance to custom legislation of Custom union and (or) custom legislation of the Republic of Kazakhstan, does not provide customs clearance and custom control;
      4) the document confirming the fact of payment for fuels and lubricants, realized by an airport to an international air company;
      5) excluded by the Law of the Republic of Kazakhstan dated 27.04.2012 No. 15-V (shall be enforced upon the expiry of ten days after its first official publication);
      6) a conclusion of an official of an authorized body in the sphere of civil aviation, who participates in the thematic audit on confirmation of the amounts of the value-added tax, presented for repayment, confirming the fact of flight by an aircraft of a foreign airline and the number of realized fuels and lubricants (in the reserve of airlines) in the form and in the order, approved by an authorized body by the agreement with the authorized body in the sphere of civil aviation.
      The conclusion provided for in this sub-paragraph shall be submitted by an official of the authorized body in the field of civil aviation in the case of the flight for which, in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan does not provide customs clearance and customs control.
      Footnote. The Code is supplemented with Article 244-1 in accordance with the Law of the Republic of Kazakhstan dated 26.11.2010 No. 356-IV (shall be enforced from 01.01.2011), as amended by the Law of the Republic of Kazakhstan dated 27.04.2012 No. 15-V (shall be enforced upon the expiry of ten days after its first official publication);

Article 244-2. Taxation of goods, realized in the territory of a special economic zone

      1. Realization of goods in the territory of a special economic zone which are fully consumed when performing the activity which corresponds with the aims of the special economic zones on the enumeration of goods, determined by the Government of the Republic of Kazakhstan shall be taxable by the value-added tax at the zero rate.
      For the purposes of this Article, the goods, specified in the first part of this paragraph are the goods which are placed under the customs procedure of the free customs zone and which are under the customs control.
      2. The documents, confirming turnovers which are taxable at the zero rate when realizing the goods which are fully consumed when performing the activity, corresponding with the aims of the special economic zones shall be:
      1) an agreement (contract) on supply of goods by organizations working in the territory of special economic zones;
      2) copies of the declaration for the goods and (or) transport (transportation), commercial and (or) other documents with attachment of the enumeration of goods with marks of a tax body releasing the goods via the customs procedure of the free customs zone;
      3) copies of the shipping documents, confirming shipping of the goods to the organizations, specified in sub-paragraph 1) of this paragraph;
      4) copies of the documents, confirming receipt of the goods by the organizations, specified in sub-paragraph 1) of this paragraph;
      3. Refund of an excess of the value-added tax to suppliers of the goods realized in the territory of a special economic zone shall be performed in part of the imported goods actually consumed when performing the activity, corresponding with the aims of the special economic zones after receiving the confirmation from a tax body, located in the territory of the special economic zone. The basis for the confirmation is a document on use of the imported goods when performing the activity, corresponding with the aims of the special economic zones, handed at the request of a tax body, located in the territory of the appropriate special economic zone.
      4. The governing company of a special economic zone shall hand a document on actual consumption of the imported goods when performing the activity, corresponding with the aims of the special economic zones.
      The document, specified in the first part of this paragraph shall be handed when having financial provision.
      In case of revealing reliability of the information, contained in the document, specified in the first part of this paragraph, the losses of the budget shall be reimbursed at the expense of a financial provision.
      Financial provision, formed for the purposes of reimbursement of the losses of the budget shall be performed in the following ways:
      money;
      a bank guarantee;
      surety ship;
      pledge of property;
      an insurance contract.
      The governing company shall have the right to choose any of the ways of formation of financial provision, including combinations of two or several ways.
      5. The governing company of a special economic zone shall submit the documents, confirming that a special economic zone of the governing company has financial provision in the amount equivalent to not less than 205 000-fold of the monthly calculation index, established by the Law on the Republican Budget to a tax body, located in the territory of the special economic zone.
      The order of formation of financial provision, submission of the documents, confirming that the governing company has financial provision, and the order of reimbursement of the losses of the budget at the expense of financial provision shall be determined by the Government of the Republic of Kazakhstan.
      Footnote. The Code is supplemented with Article 244-2 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.2012).

Article 244-3. Specifics of taxation of goods, realized in the territory of the special economic zone "Astana - new city"

      1. Unless otherwise provided by Article 244-2 of this Code, realization of goods which are fully consumed in the process of building and commissioning of objects of infrastructure, hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, libraries, schoolchildren's palaces, sports complexes, administrative and residential complexes in accordance with the design and estimate documentation in the special economic zone "Astana- New City" on the enumeration of the goods, determined by the Government of the Republic of Kazakhstan, shall be taxable by the value-added tax at the zero rate.
      For the purposes of this Article, the goods which are fully consumed in the process of building are the goods which are directly engaged in the process of construction of infrastructure objects, hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, libraries, schoolchildren's palaces, sports complex, administrative and residential complexes (except for electricity, gasoline, diesel fuel and water), provided placement of these goods under the customs procedure of free customs zone and being under the customs control.
      2. The documents, confirming turnovers which are taxable at the zero rate in accordance with this article shall be:
      1) an agreement (contract) on supply of goods by organizations that build the objects, specified in paragraph 1 of this Article in the territory of the special economic zone "Astana - New City";
      2) copies of the declaration for the goods and (or) transport (transportation), commercial and (or) other documents with attachment of the enumeration of the goods with the Footnotes of a tax body, releasing the goods via the customs procedure of a free tax zone;
      3) copies of the shipping documents, confirming shipment of the goods to the organizations, specified in sub-paragraph 1) of this paragraph;
      4) copies of the documents, confirming receipt of goods by the organizations, specified in sub-paragraph 1) of this paragraph.
      3. Refund of an excess of the value-added tax to suppliers of the goods, realized in the territory of the special economic zone "Astana -New City" in accordance with this Article, shall be performed in the part of the imported goods which are fully consumed in the process of building of objects of infrastructure, hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, libraries, schoolchildren's palaces, sports complexes, administrative and residential complexes after receiving the confirmation from a tax body, located in the territory of the special economic zone "Astana - New City". The basis of the confirmation is a document on actual consumption of the imported goods in the process of building of objects of infrastructure, hospitals, clinics, schools, kindergartens, museums, theatres, secondary and higher education institutions, libraries, schoolchildren's palaces, sports complexes, administrative and residential complexes, which is handed at the request of the tax body, located in the territory of the special economic zone "Astana -New City" by a local executive body.
      Footnote. The Code is supplemented with Article 244-3 in accordance with the Law of the Republic of Kazakhstan dated 21.07.2011 No. 470-IV (shall be enforced from 01.01.20120. 

Article 244-4. Taxation of the affined gold

      1. The turnover on realization of the affined gold from own raw materials for receiving gold assets to the National Bank of the Republic of Kazakhstan by taxpayers, extracting and producing gold, shall be taxable by the value-added tax at the zero rate.
      2. The documents, confirming turnovers which are taxable at the zero rate, specified in paragraph 1 of this Article shall be:
      1) a contract on general conditions of purchase and sale of the refined gold for replenishment of gold assets, concluded between a taxpayer and the National Bank of the Republic of Kazakhstan;
      2) copies of the documents, confirming receipt of the affined gold by the National Bank of the Republic of Kazakhstan with specification of the amount of the affined gold.
      3) copies of the documents, confirming receipt of the affined gold by the National Bank of the Republic of Kazakhstan with specification of the amount of the affined gold.
      Footnote. The Chapter 31 is supplemented with Article 244-4 in accordance with the Law of the Republic of Kazakhstan dated 09.01.2012 No. 535-IV (shall be enforced from 01.01.2012).

Article 245. Taxation in certain cases

      Note of the RCLI!
      Paragraph 1 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced from 01.01.2009).

      1. The turnover on realization of goods of own production to the taxpayers working in the territory of the Republic of Kazakhstan under a contract on subsoil use, in accordance with which the imported goods shall be exempted from the value-added tax, shall be taxable by the value-added tax at the zero rate.
      In case, if a contract on subsoil use determines the enumeration of the imported goods which are exempted from the value-added tax, the turnovers on realization of the goods, specified in this enumeration shall be taxable at the zero rate.
      For the purposes of this Article, the goods of own production shall be a product (goods) which is produced by a payer of the value-added tax him/herself and which has the code of the commodity nomenclature of the foreign economic activity which differs at the level of any of first four digits from the code of raw materials and materials, which were used in production and which are included in the product (goods), corresponding with the criteria for sufficient processing, provided by the lax legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan.
      The enumeration of the taxpayer, specified in this Article shall be approved by the Government of the Republic of Kazakhstan.
      Note of the RCLI!
      Paragraph 1-1 shall be enforced from 01.01.2009 (see Article 2 of the Law of the Republic of Kazakhstan 22.06.2012 No. 21-V).
      1-1. Assessment to added value at the zero rate sales turnover of unstable condensate produced and sold subsurface operating in the framework of the subsoil use contract referred to in paragraph 1 of Article 308-1 of the Code, from the Republic of Kazakhstan to the other Member States of the Customs Union.
      List of taxpayers for the added value referred to in this paragraph shall be approved by the Government of the Republic of Kazakhstan.
      Note of the RCLI!
      Paragraph 1-2 shall be enforced from 01.01.2011 (see Article 2 of the Law of the Republic of Kazakhstan 22.06.2012 No. 21-V).
      1-2. Assessment to VAT at the zero rate turnover of the taxpayer, engaging the activity in the framework of the intergovernmental agreement on cooperation in the gas sector, in the territory of another member state of the Customs Union of refined products from raw materials, previously exported by this taxpayer from the Republic of Kazakhstan and processed in the territory of such another member State of the customs union.
      List of taxpayers for the added value referred to in this paragraph shall be approved by the Government of the Republic of Kazakhstan.
      2. The documents, confirming realization of goods by the taxpayers, specified in paragraph 1 of this Article are:
      1) a contract on supply of goods to taxpayers working in the Republic of Kazakhstan under a contract on subsoil use, in accordance with the conditions of which the imported goods shall be exempted from the value-added tax, specifying that the supplied goods are intended for execution of a work program of the contract on subsoil use;
      2) the copies of the shipping documents, confirming shipping of the goods to taxpayers;
      3) the copies of the documents, confirming receipt of the goods by taxpayers.
      3. Documents confirming the implementation of unstable condensate referred to in paragraph 1.1 of this Article are:
      Note of the RCLI!
      Sub-paragraphs 1) to 3) shall be enforced from 01.07.2010 (see Article 2 of the Law of the Republic of Kazakhstan 22.06.2012 No. 21-V).
      1) an agreement (contract) for the delivery of unstable condensate exported (exported) from the Republic of Kazakhstan to the other Member States of the Customs Union;
      2) the act of reading with regard to the number of devices sold an unstable condensate piping system;
      3) the act of conveyance of the unstable condensate removed from the territory of the Republic of Kazakhstan to the other member states of the Customs Union on the pipeline system.
      The order of metering for the number of sold unstable condensate pipeline system is approved by the Government of the Republic of Kazakhstan.
      Note of the RCLI!
      Paragraph 4 shall be enforced from 01.01.2011 (see Article 2 of the Law of the Republic of Kazakhstan 22.06.2012 No. 21-V).
      4. Documents confirming the sale of the goods referred to in paragraph 1.2 of this Article are:
      1) contracts (contracts) for tolling;
      2) agreements (contracts), on the basis of which the sale of food processing;
      3) documents confirming the performance of work on processing of raw materials;
      4) copies of shipping documents confirming the export of raw materials from the territory of the Republic of Kazakhstan to the territory of another Member State of the customs union.
      In case of export of raw materials through the pipelines instead of copies of shipping documents, the act of conveyance of such raw materials is appeared;
      5) documents, confirming the shipment of refined products to the customer - the taxpayer of a Member State of the customs union, on the territory of which the processing of raw materials was carried out;
      6) documents, confirming the receipt of foreign currency earnings related to sales of refined products in taxpayer's bank accounts in banks in the Republic of Kazakhstan are opened in accordance with the legislation of the Republic of Kazakhstan;
      7) The conclusion of the appropriate authorized state body on the terms for processing on the territory of a Member State of the customs union under paragraph 8 of Article 276-13 of the Code.
      In determining the amount of excess tax for the added value, to be refunded, the results of a tax audit are taking into account, carried out against the buyer of processed products by the State Tax Service of the Customs Union at the request of the tax authority of the Republic of Kazakhstan.
      Footnote. Article 245 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 22.06.2012 No. 21-V (the order of enforcement see Article 2)

Chapter 32. TAXABLE IMPORT

Article 246. Definition of the taxable import

      The taxable import is the goods, imported to the territory of the Customs Union (except for those, exempted from the value-added tax in accordance with Article 255 of this Code) which shall be subjected to declaration in accordance with the customs legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan.
      Footnote. Article 246 as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Article 247. The amount of the taxable import

      The amount of the taxable import shall include the customs cost of the imported goods, determined in accordance with the tax legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan, and the amounts of taxes and customs duties, payable to the budget when importing goods in the Republic of Kazakhstan, except for the value-added tax for import.
      Footnote. Article 247 as amended by the Laws of the Republic of Kazakhstan dated 04.07.2009 No. 167-IV (shall be enforced from 01.01.2009); dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010).

Chapter 33. TURNOVERS AND IMPORT EXEMPTED FROM THE VALUE-ADDED TAX

Article 248. Turnovers on realization of goods, works, services, a place of realization of which is the Republic of Kazakhstan, which are exempted from the value-added tax

      Footnote. The title of Article 248 in the wording of the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011).
      Turnovers on realization of the following goods, works, services, a place of realization of which is the Republic of Kazakhstan, shall be exempted from the value-added tax:
      1) the state signs of postal payment;
      2) the excise stamps (accounting and control stamps, designed for marketing of excisable goods in accordance with Article 653 of this Code);
      3) the services, which are performed by the authorized state bodies, in connection with which the government duty is levied;
      4) the property, bought out for the state needs in accordance with the legislation of the Republic of Kazakhstan;
      5) the basic means, investments in real estate, intangible and biological assets which are gratuitously transferred to a state institution or a state enterprise in accordance with the legislation of the Republic of Kazakhstan:
      6) funeral services of funeral homes, cemeteries and crematoria services;
      7) lottery tickets, except for services related to their distribution;
      8) the services for provision of informational and technological interaction between participants of settlements, including provision of services for collection, processing and distribution of the information to the participants of settlements on operations with payment cards and electronic money;
      9) the services for processing and (or) repair of goods, imported to the customs territory of the Customs Union in the customs procedure of processing in the customs territory;
      10) the works and services related to transportations, which are international in accordance with Articles 244, 276-12 of this Code, namely: the works, services for loading, unloading, transshipment (discharge-filling), transposition of wagons on trolleys or wheel pairs of the different track when crossing the customs border of the Customs Union, forwarding goods, including mail, exported from the territory of the Republic of Kazakhstan, imported in the territory of the Republic of Kazakhstan, and transit cargoes; services of sea ports for servicing international trips;
      11) the services for management, maintenance and exploitation of housing facilities;
      12) the bills and coins of the national currency;
      13) the goods, works, services, except for turnovers on realization of goods, works, services from the trade and mediatory activities and turnovers on production and realization of excisable goods, public associations of the disabled persons, and production organizations, if these associations and organizations correspond with the following conditions:
      the disabled persons shall make 51 percent of the total number of the employees of these production organizations;
      the expenses for salaries of the disabled persons shall make 51 percent (in the specialized organizations, where visually, acoustically, orally challenged persons work - no less than 35 percent) from the total expenses for salaries;
      14) excluded by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.01.2011);
      15) the works, services for repair and (or) maintenance of goods within the term, established by a transaction of the warranty period of their exploitation, including the cost of spare parts and details to them, if the conditions of the transaction provide the quality assurance of the realized goods, executed works, provided services by a taxpayer;
      16) unless otherwise provided for by Article 244-4 of this Code, the affined precious metals - gold, platinum made from own raw materials;
      16-1) unless otherwise provided for by Article 244-4 of this Code, the investment gold under simultaneous compliance with the following conditions:
      the total weight of the realized investment gold within a tax period on the value-added tax shall not exceed 32 troy ounces;
      the total cost of the realized investment gold within a tax perio