Article 300. Features of deduction of value added tax of the Tax Code of the Republic of Kazakhstan

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 If the payer of corporate income tax is a subsurface user operating under a production sharing agreement (contract) as part of a simple partnership (consortium), and the fulfillment of tax obligations for the preparation and submission of value-added tax forms is assigned to the operator in accordance with paragraph 3 of Article 507 of this Code, the deduction includes the tax on the added value provided for in paragraph 3 of Article 259 of this Code, in the amount of, the share of the specified subsurface user according to the operator's declaration of value added tax.

 The provisions of this article shall not apply to value-added tax on goods, works, and services, the cost of which is subject to deduction in accordance with Article 314 of this Code.

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

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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 300. Transfer of losses of the Tax Code and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. Losses from entrepreneurial activity, as well as losses from the disposal of fixed assets of Group I and losses from the sale of unfinished construction and unidentified equipment, with the exception of assets purchased for state needs in accordance with the laws of the Republic of Kazakhstan, are carried forward for the next ten years inclusive to be repaid from the taxable income of these tax periods.

The taxable income of controlled foreign companies and permanent establishments of controlled foreign companies, with the exception of those registered in countries with preferential taxation, is reduced by the amount of losses from entrepreneurial activity in the Republic of Kazakhstan incurred during the reporting period and the two previous tax periods sequentially preceding the reporting tax period. Losses recorded in the current and (or) previous periods due to the objects of taxation defined in Article 223 of this Code are not taken into account.

2. Losses from the sale of land plots, with the exception of land plots purchased for state needs in accordance with the laws of the Republic of Kazakhstan, are compensated by income from the increase in value received from the sale of such assets.

If these losses cannot be compensated in the period in which they occurred, then they can be carried forward to the next ten years inclusive and compensated from the income from the increase in value received from the sale of land plots.

3. Unless otherwise established by this article, losses arising from the sale of securities shall be compensated by income from the increase in value received from the sale of other securities, with the exception of income from the increase in value received from the sale of securities specified in paragraphs 4, 5, 6 and 7 of this Article.

If these losses cannot be compensated in the period in which they occurred, they may be carried forward to the next ten years inclusive and compensated from the proceeds from the increase in value received from the sale of other securities, unless otherwise provided by this article.

4. Losses incurred from the sale of shares, participation interests in a resident legal entity or a consortium established in the Republic of Kazakhstan are compensated by income from the increase in value from the sale of shares, participation interests in a resident legal entity or a consortium established in the Republic of Kazakhstan. This paragraph applies if the following conditions are fulfilled simultaneously:

as of the date of sale of shares or participation shares, the taxpayer has owned these shares or participation shares for more than three years;

Such a legal entity is an issuer or a legal entity in which a participation interest is being realized, or a participant in such a consortium that implements a participation interest in such a consortium, is not a subsurface user.;

the property of persons (persons) who are (are) subsurface users (subsurface users) in the value of assets of such issuing legal entity or such legal entity, the share of participation in which is being sold, or in the total value of assets of the participants of the consortium, the share of participation in which is being sold, on the day of such sale is not more than 50 percent.

The term of ownership of shares or participation shares specified in this paragraph by the taxpayer is determined collectively, taking into account the terms of ownership of shares or participation shares by the former owners, if such shares or participation shares were obtained by the taxpayer as a result of the reorganization of the former owners.

For the purposes of this paragraph, a subsurface user is not recognized as a subsurface user who is such solely because of the possession of the right to extract groundwater and (or) widespread minerals for his own needs, as well as a subsurface user who carries out subsequent processing during the twelve-month period preceding the first day of the month in which shares or participation interests are realized (after the initial processing) at least 70 percent of the mineral raw materials extracted during the specified period, including coal, at its own and (or) owned by a resident legal entity that is an interconnected party, production facilities located on the territory of the Republic of Kazakhstan.When determining the volume of mineral raw materials, including coal, sent for subsequent processing, raw materials are taken into account:

aimed directly at the production of products obtained as a result of any processing following the primary processing;

used in the production of primary processed products for further use in subsequent processing.

In this case, the share of property of persons (persons) who are (are) subsurface users (subsurface users) in the value of assets of a legal entity or consortium, whose shares or participation interests are being sold, is determined in accordance with Article 650 of this Code.

RCPI's note! Paragraph 4-1 is valid until 01.01.2029 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI.

4-1. Losses incurred from the sale of shares issued by legal entities specified in subitem 6) of item 1 of Article 293 of this Code, shares in legal entities specified in subitem 6) of item 1 of Article 293 of this Code, are compensated by income from value gains from the sale of shares issued by legal entities specified in subitem 6) of paragraph 1 of Article 293 of this Code, shares of participation in the legal entities specified in subparagraph 6) of paragraph 1 of Article 293 of this Code.

5. Losses arising from the sale by open trading on a stock exchange operating in the territory of the Republic of Kazakhstan of securities listed on the official lists of this stock exchange on the day of sale are offset by income from value gains from the sale by open trading on a stock exchange operating in the territory of the Republic of Kazakhstan of securities held on the day of sale sales in the official lists of this stock exchange.

6. Losses arising from the sale of government-issued securities are compensated by income from the increase in value from the sale of government-issued securities.

7. Losses arising from the sale of agency bonds are compensated by income from the increase in value during the sale of agency bonds.

8. If the losses specified in paragraphs 4, 5, 6 and 7 of this article cannot be compensated in the period in which they occurred, they shall not be carried over to subsequent tax periods.

9. Losses incurred by a special financial company from activities carried out in accordance with the legislation of the Republic of Kazakhstan on project financing and securitization may be transferred in securitization transactions during the maturity of the bonds secured by the allocated assets.

10. Losses incurred as part of the application of a special tax regime for producers of agricultural products, aquaculture (fish farming) products and agricultural cooperatives are not carried over to subsequent tax periods.

RCPI's note! Paragraph 11 is valid until 01.01.2027 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI.

11. Losses incurred by a subsidiary of the bank acquiring doubtful and uncollectible assets of the parent bank are not carried forward to subsequent tax periods.

12. Losses on derivative financial instruments used for purposes other than hedging or supplying the underlying asset are offset by gains on derivative financial instruments used for purposes other than hedging or supplying the underlying asset.

If such losses cannot be compensated in the period in which they occurred, they may be carried forward to the next ten years inclusive and offset by income from derivative financial instruments used for purposes other than hedging or supplying the underlying asset.

13. Losses from entrepreneurial activity received by a legal entity, with the exception of those specified in paragraph 14 of this article, for activities for which this Code provides for a 100 percent reduction in corporate income tax calculated in accordance with Article 302 of this Code, shall not be carried over to subsequent tax periods.

14. Losses incurred by an organization implementing an investment priority project under an investment contract concluded in accordance with the legislation of the Republic of Kazakhstan in the field of entrepreneurship are not carried over to the tax periods following the tax period in which such an investment contract was terminated.

15. Losses on an intellectual property object specified in paragraph 4-3 of Article 293 and paragraph 4 of Article 709 of this Code shall be compensated in subsequent tax periods from taxable income for each intellectual property object within the limitation period.

The footnote. Article 300 as amended by the Laws of the Republic of Kazakhstan dated 12/26/2018 No. 203-VI (effective from 01.01.2019); dated 12/10/2020 No. 382-VI (effective from 01.01.2020); dated 12/20/2021 No. 85-VII (effective 01.01.2023).

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