The State Revenue Committee of Kazakhstan has issued a Letter No. КГД-07-3-ЮЛ-Е-14-КГД-14754 on 15th July 2015 regarding tax treatment of bad debts provided by a non-resident company’s head office to its Kazakh branch. In accordance with the general provisions of the Tax Code, income received in a debt write-off should be stated and involved in the debtor’s taxable base for corporate income tax objectives. Here, debt write-off means an amount of debt that a company is no longer obliged to pay. Kazakh branch is not counted as a distinct legal entity though branch of a non-resident company needs to have accounting records separately from the head office.
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