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

Article 202. Forms of accounting source documents and requirements to their drawing up

1. Individual entrepreneurs, who do not maintain accounting records and do not compile financial statements in accordance with the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting”,use accounting source documents, the forms of which are approved by the authorized body, as well as requirements to their drawing up.

The specified individual entrepreneurs are also entitled to issue primary accounting documents in the information system of electronic invoices

using the electronic digital signature.

2. Entries into tax registers shall be made on the basis of source documents.

Article 202 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2018).



Article 203. Features of tax accounting

1. Individual entrepreneurs recalculate foreign currency transactions in tenge using the market exchange rate set on the last business day preceding the date of transaction. An exchange rate difference is not taken into account for tax purposes.

2. In tax accounting, inventories are recognized at their production cost when they are received by an individual entrepreneur or his/her authorized person, also after their production by an individual entrepreneur, as a result of disassembly of fixed assets by transferring them from other assets.

The production cost of inventories includes the costs of acquisition, processing, other costs incurred to bring the inventories to their current condition and deliver them to their current location.

Acquisition costs include import duties, taxes (except for reimbursable ones), transportation, manufacturing and other costs directly related to the acquisition. Trade discounts provided by a supplier, the supplier’s refunds and other similar discounts and refunds are deducted in cost determination.

Costs of processing inventories include costs directly related to the processing of raw materials into finished products, including direct labor costs, as well as manufacturing overhead costs.

For tax accounting purposes, the production cost of a unit of inventories is determined with account of actual costs provided for in part two of this paragraph for such a unit of inventories.

An individual entrepreneur has the right to determine, for tax accounting purposes, the cost of a unit of inventories using the weighted average cost method. The weighted average cost method determines the production cost of inventories as the average value of the production cost of inventories at the beginning of a period and of similar inventories acquired (produced) during a period. The individual entrepreneur chooses this method by indicating it in his/her tax accounting policy.

Individual entrepreneurs engaged in production of goods, as well as individual entrepreneurs that chose the weighted average cost method, record inventories at their arrival and disposal in tax registers, the form of which is developed by individual entrepreneurs on their own.

The arrival of inventories by way of their internal movement is not an individual entrepreneur’s income. Internal movement of inventories means their movement from one financially liable person appointed by an individual entrepreneur to another financially liable person appointed by the same individual entrepreneur.

For the purposes of tax accounting of an individual entrepreneur, transfer of inventories for storage or as a customer-supplied raw material is not the disposal of inventories.

An individual entrepreneur receives inventories for storage on the basis of a storage agreement or an application to refuse acceptance in case the individual entrepreneur received inventories and legitimately refused to accept invoices of these inventories’ suppliers and to pay them. The value of such inventories is not the income of an individual entrepreneur.

The disposal of inventories is:

1) termination of their recognition as an asset, also as a resultof external sale of inventories, their transfer free of charge, their use in production process, in performance of works, rendering of services and for other purposes, when they are transferred as a contribution to the authorized capital, in case of their exchange, shortage discovered when taking an inventory, a theft, property damage, expiration of storage periods, obsolescence and other cases of loss of marketability;

2) reclassification of an asset, including transfer to fixed assets, other assets.
Chapter 25. TAX FORMS