Article 723. Conditions for applying a special tax regime on the basis of a simplified declaration tax code of the Republic of Kazakhstan

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 1. on the basis of a simplified declaration, the special tax regime is subject to the following conditions::

 1) the maximum income for the calendar year does not exceed 600,000 times the monthly calculation index in force on January 1 of the corresponding financial year;

 2) individual entrepreneurs and legal entities-residents of the Republic of Kazakhstan (with the exception of those named in Paragraph 2 of this article) engaged in activities not included in the list of activities in which the application of the special tax regime on the basis of a simplified declaration determined by the Government of the Republic of Kazakhstan is prohibited.

 For purposes of determining the amount of marginal revenue:

 the size of the object of Taxation determined in accordance with article 724 of this code is taken into account;

 income from the implementation of activities using a special tax regime for peasant or farm Farms is not taken into account.

 2. The following may not apply a special tax regime on the basis of a simplified declaration:

 1) legal entities with a share of participation of other legal entities exceeding 25 percent;

 2) legal entities, the founder or participant of which is simultaneously the founder or participant of another legal entity applying a special tax regime;

 3) legal entities, the founder or participant of which applies a special tax regime;

 4)taxpayers (individuals, individual entrepreneurs) who are founders or participants of a legal entity applying a special tax regime;

 5) non-profit organizations;

 6) participants of Special Economic and industrial zones, "Astana hub";

 7) taxpayers for activities carried out under joint activity agreements.

 3.individual entrepreneurs and legal entities applying a special tax regime on the basis of a simplified declaration shall organize and maintain tax accounting in accordance with Chapter 20 of this code.

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

President

Republic of Kazakhstan

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To recognize as invalid the Code of the Republic of Kazakhstan (tax code) of December 25, 2017 "on taxes and other mandatory payments to the budget" from January 1, 2026 in connection with the entry into force of the tax code of the Republic of Kazakhstan dated July 18, 2025 No. 214-VIII.

Article 723. Features of tax accounting of Subsoil Use operations code of the Republic of Kazakhstan on taxes and other mandatory payments to the budget (tax code)

1. In order to calculate the tax liability of the subsurface user for the services carried out under each contract for subsurface use, as well as when developing low-profitability, high-viscosity, flooded, low-flow or developed fields (such a group of fields under one contract, a group of fields, a part of the field, in the case of carrying out activities under one, in case of carrying out activities for a part of a field), a group of fields, part of a field), in the case of calculating taxes and payments to the budget in accordance with the procedure and rates that differ from those established by this code.

2. The provisions of this article on conducting separate tax accounting, except for the requirements for conducting separate tax accounting for contracts for the exploration and (or) production of common minerals, non-ore solid minerals, groundwater, therapeutic mud specified in line 13 of the table of Article 746 of this code, as well as for calculating and fulfilling the tax obligation for the extraction of minerals under these contracts, does not apply to the construction and (or) operation of underground structures not related to exploration and (or) production.

Operations under subsoil use contracts specified in part one of this paragraph, which are part of the activities under contracts for exploration and (or) production of hydrocarbons or useful solid minerals, must be reflected in the tax accounting under the relevant contract for exploration and (or) production of hydrocarbons or useful solid minerals, taking into account separate tax accounting of the subsoil user. At the same time, the subsurface user is obliged to indicate in the tax accounting policy the procedure for allocating expenses for such operations to the relevant contracts and (or) non-contractual activities.

3.separate tax accounting of objects of taxation and (or) objects related to taxation is carried out by the subsoil user in accordance with the approved tax accounting policy on the basis of the data of the accounting documentation and taking into account the rules established by this article.

The subsurface user independently develops the procedure for conducting separate tax accounting and is fixed in the tax accounting policy (accounting policy section).

In the absence of a separate tax accounting procedure in the tax accounting policy and (or) non-compliance with the principles of taxation, the tax authorities determine the taxpayer's tax obligations in the course of tax control in accordance with subparagraph 1) of paragraph 11 of this article.

The provisions of this paragraph also apply to the authorized representative of the participants in a simple Partnership (consortium) responsible for maintaining aggregate tax accounting in accordance with paragraph 2 of Article 200 of this code.

4. separate tax accounting for contractual activities includes the following taxes and payments to the budget:

1) corporate income tax;

2) signing bonus;

3) payment for compensation of historical losses;

4) Mineral Production Tax;

5) overhead profit tax;

6) alternative Subsoil Use Tax;

7) other taxes and payments to the budget calculated on the basis of the tax regime of subsurface use contracts defined in Paragraph 1 of Article 722 of this code in a different manner than those established by this code.

5. when conducting separate tax accounting for calculating a tax liability, a subsurface user:

1) for each subsurface use contract separately from non-contractual activities for calculating taxes and payments to the budget specified in paragraph 4 of this article – for tax accounting of objects of taxation and (or) objects related to taxation;

2) calculation of taxes and payments to the budget not specified in paragraph 4 of this article, as well as corporate income tax for the entire activity of the subsurface user as a whole;

3) for each subsurface use contract – for taxes and payments to the budget specified in paragraph 4 of this article-with the exception of tax reporting on corporate income tax;

4) for the activities of the subsoil user as a whole – submission of a single declaration on corporate income tax and relevant appendices to it for each Subsoil Use Contract;

5) provide tax reporting on taxes and payments to the budget not specified in paragraph 4 of this article for the entire activity of the subsurface user as a whole.

6.when calculating corporate income tax on the activities of a subsoil user as a whole, losses incurred under a specific contract for subsoil use are not taken into account, the subsoil user has the right to reimburse them only at the expense of income received from activities under such a specific contract for subsoil use in subsequent tax periods, taking into account the provisions of Article 300 of this code.

7.income from the write-off by a strategic partner of a national company for subsoil use or a legal entity whose shares (participation shares) directly or indirectly belong to such a national company for subsoil use in accordance with the legislation of the Republic of Kazakhstan On Subsoil and subsoil use (including remuneration) for the purpose of maintaining separate tax accounting is also income from contractual activities.

8. for the purposes of this section, the following concepts are used:

1) Direct Income and expenses-income and expenses of a subsurface user for the reporting tax period, including income and expenses for fixed assets that have a direct causal relationship with a specific contract for subsurface use or non-contractual activities;