Article 334. Exemption from taxation of the Tax Code of the Republic of Kazakhstan

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 1. The financial profit of a controlled foreign company or the financial profit of a permanent establishment of a controlled foreign company is exempt from taxation in the Republic of Kazakhstan if one of the following conditions is met:

 1) with the indirect participation or indirect control of a resident in a controlled foreign company carried out through another resident;

 2) with the indirect participation or indirect control of a resident in a controlled foreign company, carried out through a person who is not a controlled person;

 3) if the financial profits of a permanent establishment of a controlled foreign company have been taxed on profits in the State in which the controlled foreign company that established the permanent establishment is registered at an effective rate of 20 percent or more;

 4) if the financial profit of a controlled foreign company or the financial profit of a permanent establishment of a controlled foreign company has been taxed in the State in which the controlled person is registered, through which the resident indirectly owns shares or has indirect control in the controlled foreign company, at an effective rate of 20 percent or more;

 5) if the share of passive income of a controlled foreign company or a permanent establishment of a controlled foreign company, with the exception of those registered in countries with preferential taxation, is less than 20 percent;

 6) with direct and (or) indirect ownership and (or) control by an AIFC investment resident in a controlled foreign company.

 2. For the purposes of applying paragraph 1 of this Article, a resident must have the following documents (with mandatory translation into Kazakh or Russian)::

 1) in the case of application of subparagraph 1) or 2) of paragraph 1 of this Article:

 copies of documents confirming the indirect participation or indirect control of a resident in a controlled foreign company specified or specified in subitems 1) or 2) of paragraph 1 of this Article,

 a copy of a document signed by the first head (or a person authorized to sign financial statements) of a resident, disclosing the unified organizational structure of a consolidated group of which the resident is a participant (shareholder), indicating the names of all participants in such a consolidated group and their geographical location (names of states (territories) where the participants of the consolidated group were established, the size of the shares and the numbers of the state and tax registration of all participants in the consolidated group (if there is a tax registration);

 2) in case of application of subparagraph 3) of paragraph 1 of this Article:

 a copy of the approved separate financial statements of a controlled foreign company that established a permanent establishment;

 a copy of the approved financial statements of a permanent establishment of a controlled foreign company;

 a document signed by the first head (or a person authorized to sign the financial statements) of a controlled foreign company, disclosing information on the inclusion in the financial profit of a controlled foreign company that established a permanent establishment, the financial profit of such a permanent establishment, or an explanatory note to the audited financial statements, certified by the person who audited the financial statements of a controlled foreign company, disclosing information about inclusion in the financial profit of a controlled foreign company, which has established a permanent establishment, the financial profits of such a permanent establishment;

 a copy of a document (documents) drawn up in a foreign language confirming the payment of income tax on the financial profits of a permanent establishment of a controlled foreign company in a foreign country in which a controlled foreign company that has established a permanent establishment is registered.

 If the withholding tax is included in determining the effective rate, the resident must have:

 a copy of a document (documents) drawn up in a foreign language confirming the withholding and transfer to the budget of a foreign state (foreign states) of withholding tax from income (income) included in financial profit before taxation;

 a document signed by the first head (or a person authorized to sign the financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on the inclusion in the financial profit before taxation of income (income) taxed at the source of payment, or an explanatory note to the audited financial statements, certified a person who conducted an audit of the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on the inclusion of income (income) taxed at the source of payment in financial profit before taxation;

 3) in case of application of subparagraph 4) of paragraph 1 of this Article:

 a copy of the approved consolidated financial statements of the controlled entity through which indirect ownership or indirect control in the controlled foreign company is carried out;

 a copy of the approved separate unconsolidated financial statements of a controlled foreign company or the financial statements of a permanent establishment of a controlled foreign company;

 a document signed by the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on the inclusion in the consolidated financial profit of a controlled person through whom a resident indirectly owns shares or has indirect control in a controlled foreign company, the financial profit of a controlled foreign company or the financial profit of a permanent establishment of a controlled foreign company, or an explanatory note to the audited financial statements, certified by the person who conducted the audit of the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on the inclusion in the consolidated financial profit of a controlled person through whom a resident indirectly owns shares or has indirect control in a controlled foreign company, the financial profit of a controlled foreign company or the financial profit of a permanent establishment of a controlled foreign company;

 a copy of a document (documents) drawn up in a foreign language confirming the payment of income tax on the financial profits of a controlled foreign company or the financial profits of a permanent establishment of a controlled foreign company in a foreign country in which a controlled person is registered, through which a resident indirectly owns shares or has indirect control in a controlled foreign company companies.

 If the withholding tax is included in determining the effective rate, the resident must have:

 4) in case of application of subparagraph 5) of paragraph 1 of this Article:

 a copy of the approved separate unconsolidated financial statements of a controlled foreign company or a permanent establishment of a controlled foreign company;

 a document signed by the first head (or a person authorized to sign financial statements) of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on each type of passive income, indicating the amounts of income received by a controlled foreign company or a permanent establishment of a controlled foreign company for the reporting period, or an explanatory note to the audited financial statements certified by a person, who conducted an audit of the financial statements of a controlled foreign company and (or) a permanent establishment of a controlled foreign company, disclosing information on each type of passive income, indicating the amounts of income received by a controlled foreign company or a permanent establishment of a controlled foreign company for the reporting period.

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 334. Income from value gains from the sale of other assets by an individual entrepreneur applying a special tax regime for small businesses or for peasant or farm farms of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

1. For the purposes of this article, other assets include the following assets that are not inventories and claims:

1) fixed assets used in business activities;

2) objects of unfinished construction;

3) Unidentified equipment;

4) intangible assets;

5) Biological assets;

6) fixed assets, the cost of which is fully deductible in accordance with the tax legislation of the Republic of Kazakhstan in force before January 1, 2000, if such fixed assets were fixed assets in tax periods during which the individual entrepreneur carried out calculations with the budget in accordance with the generally established procedure and the asset was a fixed asset;

7) assets put into operation as part of an investment project under contracts concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments, the cost of which is fully deductible, if the individual entrepreneur previously carried out calculations with the budget in accordance with the generally established procedure and the asset was a fixed asset.

2. When other assets are sold by an individual entrepreneur applying a special tax regime for small businesses or for peasant or farm farms, the increase is determined for each asset as a positive difference between the selling price (cost) and the initial cost.

3. Unless otherwise established by this Article, for the purposes of this Article, the initial cost of other assets is the total cost of acquisition, production, construction, installation, installation, reconstruction and modernization, except for the costs (expenses) specified in subparagraphs 1) -6) and 8) of Article 264 of this Code.

In this case, the recognition of reconstruction and modernization is carried out in accordance with paragraph 1 of Article 269 of this Code.

4. If the other asset was received free of charge, for the purposes of this article, the initial value is the value of the asset included in the object of taxation in accordance with paragraph 2 of Article 681 of this Code in the form of gratuitously received property.

5. When selling other assets received in the form of inheritance or charitable assistance, with the exception of the case provided for in paragraph 4 of this article, the initial cost is the market value of such an asset as of the date when an individual entrepreneur applying a special tax regime for small businesses or for peasant or farm enterprises has ownership rights to this asset, as defined in assessment report, conducted under an agreement between an appraiser and an individual entrepreneur in accordance with the legislation of the Republic of Kazakhstan on valuation activities.

At the same time, the market value of other assets must be determined no later than the deadline set for submitting an individual income tax return for the tax period in which such assets are sold.

6. The initial cost of the other asset is zero in the following cases:

1) in the absence of the market value of the other asset, determined at the date of the ownership right to it;

2) in case of non-compliance with the deadline for determining the market value established by paragraph 5 of this Article;

3) in the absence of primary documents confirming the costs provided for in paragraph 3 of this Article, with the exception of the cases specified in paragraphs 4 and 5 of this Article.;

4) for the assets specified in subitems 6) and 7) of paragraph 1 of this Article.

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