Article 232. Procedure for mutual approval of the Tax Code of the Republic of Kazakhstan

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 1. A person has the right to apply to the authorized body with an application for conducting a procedure for mutual coordination with the competent authority of a foreign state with which the Republic of Kazakhstan has concluded an international agreement.:

 1) to consider the application of the provisions of an international treaty, if it considers that the actions of one or both of the Contracting States lead or will lead to taxation that does not comply with the provisions of such an international treaty;

 2) to determine the status of residency.

 2. The statement indicates the circumstances on which the person's claims are based.

 To the application submitted in accordance with subparagraph 1) 1 of this Article, the person is obliged to attach copies of accounting documents confirming the amounts of income received (to be received) and (or) taxes withheld (if withheld), as well as notarized copies:

 1) contracts (contracts, agreements) for the performance of works, the provision of services or for other purposes;

 2) the following documents

 for legal entities:

 constituent documents or extracts from the commercial register indicating the founders (participants) and majority shareholders of the legal entity;

 a document confirming the presence in the Republic of Kazakhstan of a place of effective management (location of the actual management body) of a legal entity (minutes of the general meeting of the board of directors or a similar body indicating the place of its holding, or other documents confirming the place of management and (or) control, as well as making commercial decisions necessary for conducting business activities of a legal entity;

 for individuals:

 identity cards or passports of the Republic of Kazakhstan;

 a foreign passport or a certificate of a stateless person;

 residence permit in the Republic of Kazakhstan (if any);

 a document confirming the period of stay in the Republic of Kazakhstan (visa or other documents);

 3) a court decision of the Republic of Kazakhstan and (or) a foreign state that has entered into legal force (if any).

 The person has the right to submit other documents not specified in this paragraph, which are necessary for conducting the mutual approval procedure.

 To the application submitted in accordance with subparagraph 2) 1 of this article, the person is obliged to attach the documents specified in subitems 2) and 3) of part two of this paragraph.

 3. The authorized body has the right to require the person to submit additional documents necessary for conducting the mutual approval procedure.

 4. The authorized body, within five working days from the date of submission of the application, shall send to the person a decision on refusal to accept the application in the following cases::

 1) submitting an application for conducting a mutual agreement procedure with the competent authority of a state with which the Republic of Kazakhstan has not concluded an international agreement;

 2) failure to submit the documents provided for in paragraph 3 of this article.

 In case of refusal by the authorized body to accept the application on the grounds provided for in subparagraph 2) According to the first part of this paragraph, a person has the right to re-submit an application if they eliminate the violations committed.

 5. The authorized body shall consider the application within forty-five calendar days from the date of its receipt, with the exception of the cases specified in the first part of paragraph 4 of this Article.

 6. Based on the results of consideration of the application by the authorized body, one of the following decisions is made:

 1) the refusal to conduct a mutual agreement procedure;

 2) on conducting a mutual agreement procedure.

 7. The decision to refuse to conduct a mutual agreement procedure is made by the authorized body in the following cases::

 1) inconsistencies of the grounds specified in the application with the provisions of the international treaty of the Republic of Kazakhstan;

 2) providing false information by a person;

 3) failure of the person to submit additional documents during the consideration of the application at the request of the authorized body in accordance with paragraph 3 of this Article.

 The decision to refuse to conduct the mutual agreement procedure shall be submitted to the person within two working days from the date of its issuance.

 When making a decision to refuse to conduct a mutual agreement procedure due to dual residency, refusal on the grounds established by subparagraph 1) the first part of this paragraph does not apply.

 8. If a decision is made to conduct a mutual agreement procedure, the authorized body shall request the competent authority of a foreign State to conduct such a procedure.

 9. The authorized body shall terminate the initiated procedure of mutual coordination with the competent authority of a foreign state in the following cases::

 1) submission by a person of an application for termination of the mutual agreement procedure;

 2) identification of the fact that a person has provided false information during the mutual agreement procedure;

 3) failure by a person to submit additional documents during the mutual approval procedure at the request of the authorized body in accordance with paragraph 3 of this Article.

 10. The authorized body shall send to the person information on the decision taken following the results of the mutual approval procedure within seven working days from the date of such decision.

 11. The decision taken following the results of the mutual agreement procedure conducted in accordance with the procedure defined in this article, as well as the decision taken following the results of the mutual agreement procedure conducted on the basis of a request from the competent authority of a foreign state, are binding on the tax authorities.

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

President

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 232. Income from reducing the amount of provisions (reserves) created by the Tax Code and Other Mandatory payments to the budget (Tax Code) of the Republic of Kazakhstan

1. Income from the reduction of provisions (reserves) created by a taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 3, 6 and 7 of Article 250 of this Code, unless otherwise provided by this Article, shall be recognized as:

1) the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods, in an amount proportional to the amount of performance, when the debtor fulfills the claim.;

2) the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods, when reducing the amount of claims against the debtor on the basis of a compensation agreement, an innovation agreement, assignment of the right of claim by concluding an assignment agreement and (or) on other grounds provided for by the legislation of the Republic of Kazakhstan, in an amount proportional to the amount of reduction in the size of the requirements;

3) the reduction amounts attributed in the reporting and (or) previous tax periods to deductions of provisions (reserves) as a result of changes in the estimate of expected credit losses.

RCPI's note! Paragraph 2 is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI.

2. Income from reducing the size of provisions (reserves) created by a taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraph 2 of Article 250 of this Code shall be recognized as:

1) the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods, in an amount proportional to the amount of performance, when the debtor fulfills the claim.;

3) the reduction amounts attributed in the reporting and (or) previous tax periods to deductions of provisions (reserves) as a result of changes in the estimate of expected credit losses;

4) the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods against doubtful and uncollectible assets provided to a subsidiary of the bank for the acquisition of doubtful and uncollectible assets of the parent bank reflected in accounting records as of December 31, 2026 in accordance with international financial reporting standards. The amounts of provisions (reserves) specified in this subparagraph are included in the bank's total annual income for the tax period falling in 2026.

Note from <url>! Clause 2-1 is valid from 01.01.2020 to 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI.

2-1. A bank that has the right to deduct the amount of expenses related to the creation of provisions (reserves) in accordance with paragraph 1 of Article 250 of this Code shall not recognize as income from reducing the amount of provisions (reserves) the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods, in case of debt forgiveness for a loan in accordance with the procedure and on the terms established by this paragraph.

The provisions of this paragraph apply to a bank that has been restructured by a court decision, more than 90 percent of whose voting shares as of December 31, 2013 belong to a national management holding company, or a legal entity that was previously such a bank.

The provisions of this paragraph shall apply to debt on a loan (loan) against which the bank has created provisions (reserves) deductible in the reporting and (or) previous tax periods in accordance with paragraph 1 of Article 250 of this Code, which consists of:

outstanding principal debt;

remuneration arrears accrued after December 31, 2012;

debt related to the loan.

This paragraph applies in the case of debt forgiveness on a loan and/or debt related to a loan, provided that the following conditions are met::

1) the loan was issued before October 1, 2009;

2) the debtor of the loan (loan) and (or) debt related to the loan (loan) is listed in the list(s) of debtors whose debt is subject to forgiveness, approved (approved) before July 1, 2019 by the management body of the bank or a legal entity that was previously such a bank, specified in part two of this paragraph, and submitted (submitted) to the authorized body no later than August 1, 2019;

3) the debt on the loan (loan) and (or) debt related to the loan (loan) is forgiven within the amount specified in the list (lists) of debtors, the debt for which is subject to forgiveness, approved (approved) before July 1, 2019 by the management body of the bank or a legal entity that was previously such by the bank specified in part two of this paragraph and submitted (submitted) to the authorized body no later than August 1, 2019;

4) there is one and (or) more documents on the loan (loan):

issued to a non-resident:

an application to a law enforcement agency of a foreign state for the initiation of criminal proceedings against a debtor - an individual and (or) an official or a person who otherwise had the opportunity to directly or indirectly determine the decisions taken by the debtor - a legal entity;

a claim to a court of the Republic of Kazakhstan or a foreign state for debt collection, foreclosure on collateral and (or) restoration of lost collateral rights;

a decree of the bailiff or other document of a foreign state that has entered into legal force on the return of the enforcement document to the bank, in the event that the debtor and third parties jointly with the debtor jointly and severally liable to the said bank do not have property, including money, securities, or income, which may be subject to foreclosure, and the measures taken to identify his property or income proved fruitless.;

a court decision of a foreign state that has entered into legal force on refusal to collect a debt, restoration of lost collateral rights, foreclosure on property, including money, securities, or income of the debtor;

a court decision of a foreign state that has entered into legal force declaring the debtor bankrupt and (or) a ruling on the completion of bankruptcy proceedings;

the document of the competent authority of a foreign state on the exclusion of the debtor or the pledgor from the register of legal entities in connection with the liquidation;

issued to a resident:

an application to the law enforcement agency of the Republic of Kazakhstan on the initiation of criminal proceedings against the debtor, an individual and (or) an official or a person who had the opportunity to otherwise directly or indirectly determine the decisions taken by the debtor, a legal entity;

a document confirming the implementation of measures by the law enforcement agencies of the Republic of Kazakhstan at the request of the bank or the initiation of a criminal case.

The documents provided for in this subparagraph are not required for loans (loans) issued to non-residents.:

when the amount of the outstanding loan debt is forgiven after the sale of the mortgaged property, which fully secured the principal debt at the date of the mortgage agreement, at an out-of-court auction at a price lower than the amount of the principal debt;

when the bank assigns the right of claim at a discount on a loan to a third party who is a non-resident on the date of assignment of the right of claim, if the value of the right of claim on the loan for which the assignment was made is equal to the market value of the bank's right of claim, as determined in the assessment report conducted in accordance with the legislation of the Republic of Kazakhstan. Kazakhstan on appraisal activity or a foreign state under an agreement between an appraiser and such a third party or a bank or a person, representing the interests of the bank or appointed by a court of a foreign state to manage property in the interests of such a bank. For the purposes of this paragraph, a discount is a negative difference between the value of the right of claim for the loan (loan) for which the assignment was made by the bank and the value of the right of claim for the loan;

in case of documentary confirmation by the bank's management body of the impossibility of contacting a law enforcement agency or a court of a foreign state due to the absence of:

agreements on legal assistance between the Republic of Kazakhstan and such a foreign State in criminal and (or) civil matters;

the original agreement confirming the loan (loan);

when a part of the debt is forgiven to a debtor who is a non-resident at the date of debt forgiveness, which is defined as the difference between the amount of the loan debt and the market value of the bank's claim specified in part two of this paragraph, as determined in the assessment report conducted in accordance with the legislation of the Republic of Kazakhstan on valuation activities or a foreign state under the agreement between the appraiser and the debtor or such bank, in cases where:

there is an amendment signed with the debtor to the agreement under which the loan was issued, providing for the forgiveness of part of the debt on condition of repayment of the remaining part of the debt (hereinafter referred to as the remainder of the debt);

by the bank specified in part two of this paragraph:

In accordance with paragraph 1 of this article, income from reducing the amount of provisions (reserves) created in the amount of the remaining debt is recognized.;

The income adjustment provided for in Articles 286 and 287 of this Code has not been made.;

the amount of expenses on provisions (reserves) against the amount of the remaining debt created after the repayment of part of the debt is not deductible;

5) for a loan, the credit bureau has information on the amount of debt owed on such a loan, provided by the bank in accordance with the legislation of the Republic of Kazakhstan on credit bureaus and the formation of credit histories.;

6) there is a primary accounting document for the loan, on the basis of which provisions (reserves) have been created for such loan (loan), which are deductible in accordance with paragraph 1 of Article 250 of this Code.;

7) there is information on the loan in the credit register provided by the bank to the National Bank of the Republic of Kazakhstan in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

At the same time, in the list of debtors on loans (loans), the debt for which is subject to forgiveness, for each loan (loan) is indicated:

1) credit file number;

2) the date of issue of the loan (loan);

3) last name, first name, patronymic (if it is indicated in the identity document) and (or) the name of the borrower (co-borrower);

4) the maximum amount of debt to be forgiven, in terms of remuneration accrued after December 31, 2012, and the principal debt on the loan.

The provisions of this paragraph do not apply to loans granted to a bank employee, spouse, and close relatives of a bank employee.

3. It was valid until 01.01.2020 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI. 4. It was valid until 01.01.2020 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI. RCPI's note! This version of the first paragraph of paragraph 5 is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI (for the suspended version, see the archived version dated 25.12.2017 of the Tax Code of the Republic of Kazakhstan).

5. The income from reducing the size of provisions (reserves) created by a taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 2, 3, 6 and 7 of Article 250 of this Code, the amounts of provisions (reserves) deducted in the reporting and (or) previous tax periods, with a reduction in the amount of claims against the debtor in the following cases:

1) exclusion from the National Register of Business identification numbers in connection with the liquidation of a debtor legal entity by a court decision on the grounds established by the laws of the Republic of Kazakhstan;

2) recognition of an individual debtor on the basis of a court decision that has entered into legal force as missing, incapacitated, or with limited legal capacity, or declaring him deceased on the basis of a court decision that has entered into legal force;

3) the establishment of disability of the first and second groups for the debtor individual, as well as in the event of the death of the debtor individual;

RCPI's note! This version of subparagraph 4) is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI (for the suspended version, see the archived version dated 25.12.2017 of the Tax Code of the Republic of Kazakhstan).

4) the entry into force of the decision of the bailiff on the return of the enforcement document to the taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 2, 3, 6 and 7 of Article 250 of this Code, in the event that the debtor and third parties jointly with the debtor jointly or subsidiary liability to a taxpayer who is entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 2, 3, 6 and 7 of Article 250 of this Code, if there is no property, including money, securities or income that may be subject to foreclosure, and the measures taken by the bailiff, provided for by the legislation of the Republic of Kazakhstan on enforcement proceedings and the status of bailiffs, to identify his property or income were unsuccessful.;

RCPI's note! This version of subparagraph 5) is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI (for the suspended version, see the archived version dated 25.12.2017 of the Tax Code of the Republic of Kazakhstan).

5) the entry into force of a court decision on the refusal of a taxpayer who has the right to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 2, 3, 6 and 7 of Article 250 of this Code to foreclose on property, including money, securities, or income of the debtor.;

6) de-registration as an individual entrepreneur in connection with the recognition of an individual entrepreneur-debtor as bankrupt in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy;

7) assignment by a second-tier bank, a mortgage organization, an organization engaged in microfinance activities (with the exception of a pawnshop), the rights of claim for a loan (loan, mortgage loan, housing mortgage loan, micro-loan) to legal entities specified in the laws of the Republic of Kazakhstan "On Banks and banking activities in the Republic of Kazakhstan", "On mortgage of real estate property" and "On microfinance activities", in terms of the negative difference between the value of the right to claim a loan (loan, mortgage loan, housing mortgage loan, micro-loan), according to which an assignment was made by a second-tier bank, mortgage organization, microfinance organization (except for a pawnshop), and the value of the right of claim for a loan (loan, mortgage loan, housing mortgage loan, micro-loan) to be received by a second-tier bank, mortgage organization, microfinance organization (except for a pawnshop), from the debtor, on the date of assignment of the right of claim for the loan (loan, mortgage loan, housing mortgage loan, micro-credit) according to the primary documents of a second-tier bank, mortgage organization, or organization engaged in microfinance activities (with the exception of a pawnshop);

8) reduction in accounting of the amount of the claim against the debtor in the form of unpaid overdue loan (loan, mortgage loan, housing mortgage loan) and remuneration on it, accounts receivable for documentary settlements and guarantees in accordance with international financial reporting standards and (or) requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting by the taxpayer, having the right to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1 and 7 of Article 250 of this Code, if there is no complete or partial termination of the taxpayer's right to such claim against the debtor in accordance with the legislation of the Republic of Kazakhstan in the reporting tax period.;

9) reduction of the amount of the claim against the debtor in connection with the forgiveness by the taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraphs 1, 3 of Article 250 of this Code, of the bad debt on the loan (loan, mortgage loan, housing mortgage loan) and remuneration for it within the maximum amount of the ratio the total amount of bad debts on loans (loans, mortgage loans, housing mortgage loans) forgiven during the tax period and their remuneration to the amount of the principal debt on loans (loans, mortgage loans, residential mortgage loans) and their remuneration at the beginning of the tax period. At the same time, the maximum size of such a ratio is equal to a coefficient of 0.1;

RCPI's note! Subparagraph 9-1) is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI.

9-1) reduction of the amount of the claim against the debtor in connection with the forgiveness by a taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraph 6 of Article 250 of this Code of uncollectible microcredit debt and remuneration within the maximum ratio of the total amount of uncollectible microcredit debt and remuneration forgiven during the tax period according to them, the amount of the principal debt on micro-loans and their remuneration at the beginning of the tax period. At the same time, the maximum size of this ratio is equal to a coefficient of 0.2;

10) reducing the amount of the claim against the debtor for a mortgage housing loan (mortgage loan), which is subject to refinancing under the program for refinancing mortgage housing loans (mortgage loans) approved by the National Bank of the Republic of Kazakhstan, in connection with the forgiveness by the taxpayer entitled to deduct the amount of expenses for the creation of provisions (reserves) in accordance with paragraph 3 Article 250 of this Code, uncollectible debt on a loan (loan) and remuneration on it within the maximum ratio of the total amount of uncollectible debt on loans (loans) and remuneration on them to the amount of the principal debt on loans (loans) and remuneration on them at the beginning of the tax period. At the same time, the maximum size of this ratio is equal to a coefficient of 0.1.

11) it was valid until 01.01.2020 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI. 12) it was valid from 01.01.2020 to 01.01.2021 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI.

6. Income from a decrease in insurance reserves of an insurance or reinsurance organization is recognized as a negative difference between the amount of insurance reserves previously deducted, calculated in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities for unearned premiums, unpaid losses, declared but unresolved losses, occurred but undeclared losses at the end of the reporting tax period and the amount of such reserves at the end of the previous tax period.

IZPI's note! Clause 7 is valid from 01.01.2020 to 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI.

7. The provisions provided for in paragraphs 1 and 5 of this Article apply to a legal entity that was previously a bank that was restructured by a court decision, and more than 90 percent of its voting shares as of December 31, 2013 belong to the national management holding.

The Code of the Republic of Kazakhstan dated December 25, 2017 No. 120-VI SAM.

This Code establishes the fundamental principles of taxation, regulates power relations for the establishment, introduction, amendment, cancellation, procedure for calculating and paying taxes and other mandatory payments to the budget, as well as relations related to the fulfillment of tax obligations.

President

Republic of Kazakhstan

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