Kazakhstan’s Department of State Revenue has announced updates to the taxation of scientific (R&D) activities on 9 January 2025.
By the Law of the Republic of Kazakhstan “On Amendments and Additions to the Code of the Republic of Kazakhstan ‘On Taxes and Other Mandatory Payments to the Budget’ (Tax Code)” and the Law of the Republic of Kazakhstan “On the Implementation of the Code of the Republic of Kazakhstan ‘On Taxes and Other Mandatory Payments to the Budget’ (Tax Code)” dated 1 July 2024 No. 105-VIII ZRK, amendments were made to Articles 254, 288, and 290 of the Tax Code, which came into effect on 1 January 2025.
The following changes and additions were made:
- Article 254’s title is revised to: “Deduction for expenses on research, scientific-technical and experimental-design works, acquisition of exclusive rights to intellectual property objects, and the creation of scientific centers”;
Paragraph 1 is revised to:
Expenses for research, scientific-technical and experimental-design works, excluding expenses for the acquisition of fixed assets, their installation, and other capital expenses, are deductible if there are notifications from the authorised body in the field of science for research, scientific-technical, and (or) experimental-design works in accordance with the legislation of the Republic of Kazakhstan on science and technological policy.
- The basis for such expenses to be deductible is:
for expenses on research, scientific-technical, and experimental-design works – a report on scientific and (or) scientific-technical activity, as well as documents confirming expenses related to such activities;
for expenses on the acquisition of research, scientific-technical, and experimental-design works – a technically executed task and acceptance acts of completed stages of such works”;
- Added paragraph 3 as follows:
- Unless otherwise provided by Article 255 of this Code, the funding for the creation of scientific centers at research universities is deductible if there is a notification from the authorised body in the field of science about the creation of a scientific center in accordance with the legislation of the Republic of Kazakhstan on science and technological policy”;
- Article 288 “Reduction of taxable income” is supplemented with subparagraph 5-1) as follows:
“5-1) in the amount of 50 percent of the amount deductible in accordance with Article 254 of this Code for expenses (costs) on:
research, scientific-technical, and (or) experimental-design works related to the creation of an industrial property object, including works for which a protection document exists;
acquisition of exclusive rights to intellectual property objects from higher education and (or) postgraduate education institutions, scientific organisations, and startup companies under a licensing agreement or an agreement on the transfer of exclusive rights for the commercialisation of results of scientific and (or) scientific-technical activity.
The provisions of this subparagraph apply in the case of the performance of the specified works and (or) the implementation (use) of the results of scientific and (or) scientific-technical activities on the territory of the Republic of Kazakhstan.
Confirmation of the conduct of research, scientific-technical, and experimental-design works and (or) the implementation (use) of the results of the specified works and (or) the results of scientific and (or) scientific-technical activities is the act of implementation (use) of the results of scientific and (or) scientific-technical activities, compiled in the form and agreed upon in the manner determined by the authorised body in the field of science in agreement with the authorised bodies of the relevant industry”;
- Article 290 “Taxation of organisations” is supplemented with subparagraph 3) of the second part of paragraph 2 with the following content:
“The income specified in this subparagraph also includes the income of subjects of scientific and (or) scientific-technical activities accredited by the authorised body in the field of science, in the form of funding for the creation of scientific centers at research universities”.
