On taxes and other obligatory payments to the budget (Tax Code)

Article 194. Rules for the maintenance of separate tax accounting

1. Separate tax accounting is tax accounting for taxable and (or) tax-related items for the purposes of calculating tax obligations for certain types of taxes separately for distinguished categories, for which this Code provides for terms of taxation other than standard ones, that are mentioned below:

a type of activity or a set of types of activities;

a subsoil use contract;

a deposit (group of deposits, part of a deposit) classified as low-profit, high-viscosity, watered, marginal, worked-out;

a trust management agreement or another case of trust management;

a joint activity agreement;

turnover of sale of goods, works, services;

type of income;

a construction object.

Terms of taxation other than standard ones also include an abatement of tax, exemption from taxation, application of a special tax regime.

A taxpayer (tax agent) is not entitled to combine taxable and (or) tax-related items for the purposes of calculating tax obligations for the distinguished categories for which this Code establishes requirements to maintain separate tax accounting.

2. A taxpayer (tax agent) is obliged to maintain separate tax accounting in cases provided for by this Code.

Separate tax accounting of taxable and (or) tax-related items shall be maintained by:

an authorized representative of parties to a joint activity agreement with respect to the joint activity agreement;

a trust management founder or trust manager.

3. A taxpayer applying a special tax regime for small business entities in case of generation of income subject to taxation in accordance with a standard procedure is obliged to maintain separate tax accounting of taxable and (or) tax-related items in order to calculate tax obligations under the standard procedure separately from tax obligations under a special tax regime for small business entities.

4. A taxpayer (tax agent) independently establishes the procedure for maintaining separate tax accounting in the tax accounting policy, including a list of types of total income and expenses, methods for distributing such income and expenses among the distinguished categories and other activities for which this Code establishes different terms of taxation.

5. A subsoil user is obliged to maintain separate tax accounting of taxable and (or) tax-related items for the purposes of calculating tax obligations for contractual activities separately from non-contractual ones in accordance with the procedure set forth in Article 723 of this Code.

6. Transactions with derivative financial instruments shall not be treated as subsoil operations (contractual activity).

7. Separate tax accounting is maintained by taxpayers (tax agents) on the basis of accounting records in accordance with the approved tax accounting policy and with account of the provisions established by this article.

8. When conducting separate tax accounting for the calculation of a tax obligation, a taxpayer (tax agent) is obliged to ensure:

1) the entry of taxable and (or) tax-related items in tax accounting for the calculation of taxes for which this Code establishes the requirement for separate tax accounting - for each distinguished category separately from other activities;

2) the calculation of taxes and payments to the budget for which separate tax accounting is not required by this Code - for all activities as a whole;

3) the filing of tax returns on taxes and payments to the budget - for all activities as a whole, except for:

corporate income tax declarations;

individual income tax declarations;

VAT declarations in the case provided by Subparagraph 6) of this Paragraph;

4) separate presentation of:

a simplified declaration - for types of income to which a special tax regime on the basis of a simplified declaration is applied;

declarations with a fixed deduction - for types of income, to which a special tax regime with a fixed deduction is applied;

declarations for payers of a uniform land tax – for income from activity subject to a special tax regime for peasant or farming enterprises;

declaration on corporate or individual income tax - for other types of income;

5) the submission of a single declaration on corporate or individual income tax as a whole for all activities and relevant annexes thereto for each distinguished category in cases not specified in subparagraph 4) of this paragraph;

6) submission of a single VAT declaration:

on activity provided by Article 411 of this Code;

on other activity.

Footnote. Article 194 as amended by the Law of the Republic of Kazakhstan dated24.05.2018 No. 156-VI (shall be enforced from 01.01.2018).