Recently, the Ministry of Finance (MoF) of the Republic of Kazakhstan has modified the corporation income tax return for 2018 after the new tax Code was passed. The main changes include the following:

 Income:

  • Taxable income of a taxpayer includes the consolidated profit of the taxpayer’s controlled foreign companies (CFC) or permanent establishments (PE) of the controlled foreign companies;
  • The tax code clarifies that the date of recognition of sales proceeds is determined under the International Financial Reporting Standards (IFRS) and Kazakhstan’s accounting and financing reporting regulation;
  • Write-off of liabilities if the creditor ceases to exist;
  • Recognition of income from doubtful liabilities;

Non-taxable Income:

Items are not to be considered as taxable income: a shareholder receives upon distribution of company property, a stock buy-back, or in liquidation;

Deductions:

Certain types of expenses specifying that are deductible including those relating to a loss of goods or to damaged goods. Revisions to the rules for business travel eligible for deduction.

Net Operating Losses:

Carry forward period is 10 years for net operating losses.

Report on advance CIT payments:

Taxpayers are allowed to submit revised reports on advance corporate income tax (CIT) payments by 31 December of the reporting tax period.

Taxation of Fixed Assets and Financial Organizations:

The tax code explains measures concerning taxation of fixed assets and the tax treatment of financial organizations.