Article 725. Peculiarities of income recognition in tax accounting by individual entrepreneurs who do not maintain accounting records and prepare financial statements in accordance with the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" of the Tax Code of the Republic of Kazakhstan

    1. The provisions of this article are applied by individual entrepreneurs who do not maintain accounting records and prepare financial statements in accordance with the Law of the Republic of Kazakhstan "On Accounting and Financial Reporting".

    2. Unless otherwise specified in this article, income is measured by the value of the refund received or to be received, taking into account the amount of any trade and wholesale discounts provided by the individual entrepreneur. The amount of income arising from the transaction is determined, among other things, on the basis of an executed agreement between an individual entrepreneur and the buyer or user of the asset.

    3. Income from the sale of goods is recognized when all of the following conditions are met:

    1) the individual entrepreneur has transferred to the buyer significant risks and rewards related to the ownership of the goods;

    2) the individual entrepreneur is no longer involved in management to the extent that is usually associated with ownership, and does not control the goods sold.;

    3) The amount of income can be reliably measured;

    4) there is a possibility that the economic benefits associated with the operation will flow to the individual entrepreneur;

    5) The incurred or expected costs associated with the operation can be reliably measured.

    4. Income from the performance of work or the provision of services is recognized on the basis of an act of work performed, services rendered, or other document confirming the fact that work or services are performed. Income from the performance of work or the provision of services is recognized in the same period in which the act of work performed, services rendered, or other document confirming the fact of work performed or services rendered is signed.

    5. Income from the write-off of liabilities includes:

    1) write-off of obligations from a taxpayer by his creditor;

    2) obligations not claimed by the creditor at the time of termination of the individual entrepreneur's activity;

    3) cancellation of obligations in connection with the expiration of the limitation period established by the laws of the Republic of Kazakhstan;

    4) cancellation of obligations under a judicial act that has entered into legal force.

    The amount of income from the write-off of obligations is equal to the amount of obligations (with the exception of the amount of value-added tax) payable in accordance with the primary documents of the individual entrepreneur on the day:

    1) submission to the tax authority of a tax statement on termination of activity in the case specified in subparagraph 2) of the first part of this paragraph;

    2) write-offs in all other cases.

    Income from the write-off of liabilities is recognized in that reporting tax period.:

    1) in which the obligation is written off by the creditor in the case specified in subparagraph 1) of the first part of this paragraph;

    2) for which the liquidation tax report has been submitted to the tax authority in the case specified in subparagraph 2) of the first part of this paragraph;

    3) in which the limitation period has expired in the case specified in subparagraph 3) of the first part of this paragraph;

    4) in which the judicial act has entered into legal force in the case specified in subparagraph 4) of the first part of this paragraph.

    6. Income in the form of surplus material assets identified during the inventory is recognized in the tax period in which the inventory was completed and an inventory report was drawn up reflecting the fact of such surpluses. The cost of the surplus is determined by the individual entrepreneur independently, based on the prices and tariffs in force in the Republic of Kazakhstan.

    7. Income in the form of fines, penalties, penalties and other types of sanctions is recognized in the tax period in which the court issued a decision on their recovery or they are recognized by the debtor.

    8. When an individual entrepreneur carries out operations in which goods, works or services of an individual entrepreneur are exchanged for goods, works or services of another person, an act of acceptance and transfer of goods, works or services must be drawn up. The act of acceptance and transfer must reflect the cost of the goods transferred and received, the work performed or the services rendered. Income from such an operation is defined as the positive difference between the cost of goods received, work performed, or services rendered, which must be reflected in the acceptance and transfer certificate, and the cost of goods transferred, work performed, or services rendered.

    9. Income under a long-term contract for the reporting tax period is recognized as income to be received (received) during the tax period.

    10. The income from the assignment of the right of claim is:

    1) for an individual entrepreneur acquiring the right of claim, there is a positive difference between the amount to be received from the debtor upon the claim of the principal debt, including the amount in excess of the principal debt as of the date of assignment of the right of claim, and the cost of acquiring the right of claim. Such income from the assignment of the right of claim is the income of the tax period in which the acquired claim is repaid by the debtor.;

    2) for an individual entrepreneur who has assigned the right of claim, there is a positive difference between the value of the right of claim for which the assignment was made and the value of the claim to be received from the debtor on the date of assignment of the right of claim, according to the taxpayer's primary documents. Such income from the assignment of the right of claim is the income of the tax period in which the assignment was made.

    11. Income in the form of gratuitously received property (other than charitable assistance) intended for use for entrepreneurial purposes is the value of property acquired gratuitously by an individual entrepreneur, if such property is used by the individual entrepreneur for entrepreneurial purposes in the tax period in which such property is received.

    Income in the form of gratuitously received property (other than charitable assistance) intended for business purposes is recognized in the tax period in which such property is received, with the exception of immovable property and vehicles subject to state registration.

    Income in the form of gratuitously received immovable property (other than charitable assistance) intended for business use is recognized in the tax period in which ownership of such property is registered.

    Income in the form of a gratuitously received vehicle subject to state registration (except for charitable assistance) intended for business purposes is recognized in the tax period in which the state registration of such a vehicle was carried out.

    The value of the property acquired by an individual entrepreneur free of charge is the market value of this property as of the date of ownership of this property, as determined in the assessment report conducted under the agreement between the appraiser and the individual entrepreneur in accordance with the legislation of the Republic of Kazakhstan on valuation activities.

    12. Income in the form of reimbursement by the lessee of the expenses of the individual entrepreneur – lessor for the maintenance and repair of leased property is recognized in the tax period in which such reimbursement is received.  

    The income of an individual entrepreneur – landlord in the form of the tenant's expenses for the maintenance and repair of leased property, offset against the rent under the lease agreement, is recognized in the tax period in which such offset is made.  

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 725. Payers of the Code on Taxes and Other Mandatory Payments to the Budget (Tax Code) of the Republic of Kazakhstan

     The payer of the subscription bonus is a natural or legal person who has become the winner of a tender for obtaining the right to subsurface use or has obtained the right to subsurface use on the basis of direct negotiations on granting the right to subsurface use in accordance with the legislation of the Republic of Kazakhstan on subsurface and subsurface use, as well as who has concluded (received) one of the following subsurface use contracts in accordance with the procedure established by the legislation of the Republic of Kazakhstan:

     1) Exploration contract;

     2) mining contract;

     3) combined exploration and production contract;

     4) a license for geological exploration;

     5) license for the use of subsurface space;  

     6) a prospecting license.

The provision of subparagraph 2) of the first part of this article does not apply to subsurface users who have concluded a contract on the basis of the exclusive right to obtain the right to extract in connection with a commercial discovery under an exploration contract in the relevant contractual territory (subsurface area).

     For the purposes of this section, the concept of a "tender" conducted in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use is identical to the concept of an "auction" conducted in accordance with this legislation.

On taxes and other mandatory payments to the budget (Tax Code) On Customs Regulation On Subsoil and Subsurface Use Administrative Procedural and Procedural On the Health of the People and the Healthcare System Ecological Social Commentary Article Civil Procedural Civil Code of Criminal Procedure Criminal Regulatory Decision of the Supreme Court