Article 231. Features of registration of a permanent establishment of a non-resident of the Tax Code of the Republic of Kazakhstan

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 1. When establishing a permanent establishment, a non-resident operating in the Republic of Kazakhstan is subject to registration with the tax authority in accordance with Article 95 of this Code.

 2. The activity of a non-resident leading to the formation of a permanent establishment is considered as the activity of a permanent establishment, regardless of registration with the tax authorities or registration with the registration authority from the date of commencement of the activity.

 The date of the beginning of the activity of such a permanent establishment is the date of the conclusion of the contract (agreement).

 3. If a non-resident carries out activities leading to the formation of two or more permanent institutions subject to registration with the same tax authority, then one permanent institution is subject to registration collectively for a group of such permanent institutions of the non-resident.

 4. If a non-resident has a registered permanent establishment and carries out similar or the same activities in a place other than the place of registration of such permanent establishment, then the implementation of similar or the same activities leads to the formation of a permanent establishment and is subject to registration at the place of carrying out similar or the same activities from the date of commencement of the activity.

 5. If, after the date of exclusion of a permanent establishment of a non-resident from the taxpayer base, such non-resident resumes the activities specified in Article 228 and paragraph 2 of Article 227 of this Code for a consecutive twelve-month period, he is recognized as having formed a permanent establishment and is subject to registration as a taxpayer from the date of commencement of such activities.

 6. If a non-resident carries out activities through a structural unit that does not lead to the formation of a permanent establishment in accordance with an international treaty governing the avoidance of double taxation and the prevention of tax evasion, or paragraph 2 of Article 226 of this Code, the provisions of this Code provided for the permanent establishment of a non-resident will apply to such a non-resident structural unit..

 At the same time, such a structural unit has the right to apply the provisions of an international treaty governing the avoidance of double taxation and the prevention of tax evasion, in accordance with Articles 699, 700 and 701 of this Code.

The Code of the Republic of Kazakhstan dated July 18, 2025 No. 214-VIII SAM.

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Republic of Kazakhstan

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From January 1, 2026, to invalidate the Code of the Republic of Kazakhstan dated December 25, 2017 "On Taxes and Other Mandatory payments to the Budget" (Tax Code) in connection with the entry into force of the Tax Code dated July 18, 2025 No. 214-VIII SAM.

Article 231. Income of an insurance, reinsurance organization under insurance and reinsurance contracts of the Tax Code and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. The income of an insurance or reinsurance organization under insurance or reinsurance contracts is recognized as the income of an insurance or reinsurance organization in the form of:

1) insurance premiums (contributions);

2) increases in reinsurance assets for unearned premiums, unreported losses, reported but unresolved losses, occurred but undeclared losses;

3) reimbursement of insurance payments;

4) reduction of insurance reserves by insurance and reinsurance organizations under insurance and reinsurance contracts;

5) other income from insurance and reinsurance contracts, with the exception of income specified in Article 237 of this Code.

Income related to the activities of insurance and reinsurance organizations for the conclusion and execution of insurance (reinsurance) contracts is determined on the basis of reporting data established by the National Bank of the Republic of Kazakhstan, taking into account the requirements of the authorized body for regulation, control and supervision of the financial market and financial organizations, agreed with the authorized body and the authorized body in the field of tax policy.

2. The provisions of this article do not apply to insurance and reinsurance contracts for which income in the form of insurance premiums in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting was recognized in full before January 1, 2012.

3. The income of an insurance or reinsurance organization in the form of reinsurance assets calculated on unearned premiums, unpaid losses, declared but unresolved losses, incurred but undeclared losses, is recognized as a positive difference between the amount of reinsurance assets calculated in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities on unearned premiums, unpaid losses, declared but undeclared unresolved losses that occurred, but undeclared losses at the end of the reporting tax period and the amount of such assets at the end of the previous tax period.

4. The income of an insurance or reinsurance organization in the form of reimbursement of expenses for insurance payments is recognized as reimbursement of expenses of an insurance or reinsurance organization for insurance payments based on the right of reverse claim (recourse) to the person who caused the damage and (or) reinsurance organization in accordance with the reinsurance contract.

At the same time, under accumulative insurance, reinsurance, non-accumulative insurance, and life reinsurance contracts that entered into force before January 1, 2012, income in the form of insurance premiums is recognized in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, including after December 31. In 2011, the income of an insurance or reinsurance organization in the form of reimbursement of insurance benefits is determined by the following formula:

D x (A/B), where:

E – income to be received (received) in the reporting tax period in the form of reimbursement of insurance payments;

A – insurance premiums receivable (received) after December 31, 2011 on the day of recognition of income in the reporting tax period in the form of reimbursement of insurance benefits;

B – insurance premiums to be received (received) from the date of entry into force of the contract until the date of recognition in the reporting tax period of income in the form of reimbursement of insurance benefits.

The footnote. Article 231 as amended by the Laws of the Republic of Kazakhstan dated 12/10/2020 No. 382-VI (effective from 01.01.2018); dated 12/21/2022 No. 165-VII (effective from 01.01.2023).

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