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Law on taxes and other obligatory payments into the budget (Tax Code)

(excerpts)

Article 12. Definitions used in this Code
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11) "grant" means property, presented free of charge for achieving certain goals (tasks):
by states and state governments to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
by international and governmental organizations, foreign and Kazakh non-governmental public organizations and foundations, whose work has a charitable and (or) international nature and does not conflict with the Constitution of the Republic of Kazakhstan, and who are included in the list, established by the Government of the Republic of Kazakhstan, in agreement with findings of state bodies to the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, individuals, and legal entities;
by foreigners and stateless persons to the Republic of Kazakhstan and the Government of the Republic of Kazakhstan;

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12) "humanitarian aid" means property that is provided free of charge to the Republic of Kazakhstan in the form of food, consumer goods, machinery, equipment, tools, medical equipment and medicines, other property sent from foreign countries and by international organizations to improve the living conditions and daily life of the population, and likewise to prevent and eliminate emergencies of a military, ecological, natural and manmade character, and which is distributed by the Government of the Republic of Kazakhstan through the authorized organizations.

13) "sponsored help" means property, provided free of charge with the aim of disseminating information about the person, who provided the property:
to individuals in the form of financial (except for social) support for participation in competitions, contests, exhibits, shows and for the development of creative, scientific, technical, and inventive activities and to raise the level of education and of sporting achievement;
to non-commercial organizations for realization of their statutory goals;

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24) "charitable help" means property, provided free of charge:
to individuals with the goal of providing social support;
to non-commercial organizations with the goal of supporting their authorized activities;
to organizations, working in the social sphere with the goal of assisting them to realize thes of activity, specified in paragraph 2 of Article 135 of this Code;
to organizations, working in the social sphere, which meet the requirements, specified in paragraph 3 of Article 135 of this Code;

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Article 133. Reduction of taxable income
1. A taxpayer shall have the right to reduce the taxable income by the followings of expenses:
1) in the total amount which does not exceed 3 percent of taxable income:
the amount of excess of the actually incurred expenses over the receivable (received) income in exploitation of the social objects, provided by paragraph 2 of Article 97 of this Code;
the cost of the property, transferred to a non-commercial organization or the organizations, working in the social sphere on a gratuitous basis. The cost of gratuitously executed works, and provided services shall be determined in the amount of expenses, incurred in connection with execution of works, provision of services. The cost of the transferred property is specified in the act of transfer and acceptance of this property.
sponsorship and charity when having the decision of the taxpayer based of a request from the person, receiving the support;

 

Article 134. Taxation of non-commercial organizations
1. For the purposes of this Code, a non-commercial organization is an organization, registered in the form, established by the civil legislation of the Republic of Kazakhstan for a non-commercial organization, except for joint-stock companies, institutions and consumer cooperatives, except for the cooperatives of apartment (premises) owners, working in the public interests and corresponding with the following conditions:
1) it shall not be aimed at receiving income;
2) it shall not distribute net income of property between the participants.
2. The income of a non-commercial organization under a contract on implementation of state social order, in the form of remuneration for deposits, grants, entrance and membership fees, contributions of participants of a condominium, sponsorship and charity, gratuitously received property, inpayments and donations on the gratuitous basis shall not be subjected to taxation under observing the conditions, specified in paragraph 1 of this Article.
For the purposes of this paragraph, the contributions of participants of a condominium are:
the obligatory payments by owners of premises (apartments), aimed at covering the total expenses for maintenance and exploitation of the joint property;
the payments by owners of premises (apartments), aimed at covering additional expenses which are not attributed to the obligatory and those, providing necessary exploitation of a house as a whole, entrusted to the owners of the premises (apartments) with their consent;
a fine in the amount, established by the legislation of the Republic of Kazakhstan charged upon a delay of obligatory payments for general expenses by the owners of the premises (apartments).
The amounts and the order of contributions of participants of a consortium shall be approved by a general meeting of members of the condominium in the order, established by the legislative act of the Republic of Kazakhstan on housing relations.
3. In case of inobservance of the conditions, specified in paragraph 1 of this Article, the income of a non-commercial organization shall be taxable in the generally established order.
4. The income which is not specified in paragraph 2 of this Article shall be taxable in the generally established order.
At that, a non-commercial organization shall be obliged to keep separate accounting for the income, which is exempted from taxation in accordance with this Article, and the income, which is taxable in the generally established order.
5. When receiving the income, which is taxable in the generally established order, the amount of expenses of a non-commercial organization, which is attributable to deductions, shall be determined by the choice of a taxpayer based on a proportional or separate method.
6. According to the proportional method, the amount of expenses, which is attributable to deductions, in the total amount of expenses, shall be determined, taking into account the proportion of the income, which is not specified in paragraph 2 of this Article, in the total amount of the income of a non-commercial organization.
7. According to the separate method, a taxpayer shall keep the separate accounting for the expenses, attributable to the income, specified in paragraph 2 of this Article and the expenses, attributable to the income, which shall be taxable in the generally established order.
Footnote. Article 134 as amended by the Laws of the Republic of Kazakhstan dated 12.02.2009 No. 133-IV (the order of enforcement see Article 20); dated 30.12.2009 No. 234-IV (shall be enforced from 01.01.2010).

Article 135-1. Taxation of autonomous educational organizations
1. For the purposes of this Code, autonomous education institutions are:
1) a non-commercial organization created at the initiative of the First President of the Republic of Kazakhstan - the Leader of the Nation to provide funding for autonomous educational organizations, determined by sub-paragraphs 2) - 5) of this paragraph, the highest governing body of which is the Supreme Guardianship Board;
2) a non-commercial education institution when observing all of the following conditions:
it was created by the Government of the Republic of Kazakhstan;
its highest governing body is the Supreme Guardianship Board, created in accordance with the legislation of the Republic of Kazakhstan;
it performs one or mores of educational activities, specified by the Laws of the Republic of Kazakhstan:
primary, secondary and high school;
post-secondary education;
higher and postgraduate education;
additional education;
3) The National Holding Company in healthcare which simultaneously corresponds with the following conditions:
it is a joint stock company, created under the decision of the Government of the Republic of Kazakhstan;
50 and more percent of voting shares of this joint stock company are owned by the person, specified in sub-paragraph 2) of this paragraph;
it performs the activity in healthcare area in accordance with the legislative acts of the Republic of Kazakhstan;
4) an organization, except for that, specified in sub-paragraph 3) of this paragraph, if it corresponds with the following conditions:
50 and more percent of voting shares of (participation shares) this company are owned by the persons, specified in sub-paragraphs 2) and 3) of this paragraph, or it is a non-commercial organization, founded solely by the persons, specified in sub-paragraph 2) of this paragraph;
no less than 90 percent of income in the total annual income of this organization, taking into account the income in the form of gratuitously received property and remuneration for deposits, are the income, received from carrying out one or severals of the activity:
provision of medical services (except for cosmetology, sanatorium and resort);
provision of services on the following levels of activity, established by the Laws of the Republic of Kazakhstan:
primary, secondary and high school;
post-secondary education;
higher and postgraduate education;
additional education;
the activity in the sphere of science, namely: scientific and technical, innovational, research, including basic and applied scientific research;
provision of consulting services on thes of the activities, specified in this paragraph.
For the purposes of this sub-paragraph, the inpayments from a founder which are received and aimed at implementation of the activities, specified in this paragraph are also the income, received from the aforesaids of activities;
5) an organization, except for that, specified in sub-paragraph 3) of this paragraph, if it simultaneously corresponds with the following conditions:
50 and more percent of voting shares (participation shares) of this organization are owned by the persons, specified in sub-paragraphs 2) and 3) of this paragraph or it is a non-commercial organization, founded solely by the persons, specified in sub-paragraph 2) of this paragraph;
The Income of this organization for the reporting tax period shall be exempted from taxation in case of carrying out one or severals of activities in the sphere of science:
scientific and technical;
innovational;
research activities, including basic and applied scientific research.
Attribution of the ongoing activities to thes of activities in the sphere of science, specified in sub-paragraph 5) of this paragraph shall be confirmed by the resolution of an authorized state body on science.
This sub-paragraph shall not be applied to the organizations if they carry out one or severals of activities:
provision of medical services (except for cosmetology, sanatorium and resort);
provision of services for the following levels of educational activities, established by the Laws of the Republic of Kazakhstan:
primary, secondary and high school;
post-secondary education;
higher and postgraduate education;
additional education;
provision of consulting services on theses of activities.
2. When determining by an autonomous education institution of the amount of the corporate income tax, payable to the budget, the amount of the calculated corporate income tax shall decrease by 100 percent in accordance with Article 139 of this Code.
The provision of this paragraph shall not be applied to the periods when the net income or property, received by an autonomous education institution, which is specified in sub-paragraphs 3), 4) and 5) of paragraph 1 of this Article, were distributed among the participants.
Footnote. The Chapter 12 is supplemented with Article 135-1 in accordance with the Law of the Republic of Kazakhstan dated 19.01.2011 No. 395-IV (shall be enforced from 01.01.2011); as amended by the Law of the Republic of Kazakhstan dated 21.07.2011 No. 467-IV (shall be enforced from 01.01.2011).

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Article 156. Income which is not subjected to taxation
1. The followings of taxes shall be excluded from the income of an individual, subjected to taxation:

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29) the cost of property, received in the form of charity and sponsorship;

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Article 255. Import which is exempted from the value-added tax
1. Import of the following goods shall be exempted from the value-added tax:
4) the goods, except for the excisable goods, imported for the purposes of charity by states, governments, international organizations, including technical assistance;

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