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

Article 249. Deductions of an insurance, reinsurance organization

1. An insurance, reinsurance company shall have the right to deduct the following expenses:

1) insurance payments under insurance, reinsurance contracts;

2) cash surrender value and insurance premiums (contributions) (to be) returned in accordance with the civil legislation of the Republic of Kazakhstan;

3) insurance premiums (contributions) (to be) paid to the reinsurer under reinsurance contracts;

4) increase in insurance reserves under contracts of insurance, reinsurance in accordance with paragraph 5 of Article 250 of this Code;

5) payments to insurance agents and insurance brokers under insurance and reinsurance contracts;

6) other expenses of the insurance, reinsurance organization related to profit-oriented activities.

Deductions related to the activities of insurance, reinsurance companies for conclusion and execution of insurance (reinsurance) contracts shall be determined on the basis of reporting data established by the National Bank of the Republic of Kazakhstan, with regard to the requirements of the authorized body for regulation, control and supervision of the financial market and financial organizations, coordinated with the authorized body and the authorized body in the tax policy area.

2. The provisions of this article shall not apply to insurance, reinsurance contracts, for which income in the form of insurance premiums is recognized in full in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting before January 1, 2012.

3. Under an agreement of accumulative insurance, reinsurance, the contract of non-cumulative insurance, life reinsurance, which took effect before January 1, 2012, under which income in the form of insurance premiums is recognized in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, including after December 31, 2011:

1) deduction of expenses specified in subparagraphs 1) and 2) of paragraph 1 of this article shall be determined using the following formula:

Eх (A/B), where:

E - expenses (to) paid in a reporting taxable period;

A - insurance premiums (to be) received from December 31, 2011 to the date of assessment of expenses in a reporting taxable period;

B - insurance premiums (to be) received from the date of entry into force of the agreement to the date of assessment of expenses in a reporting taxable period;

2) deduction of expenses specified in subparagraph 3) of paragraph 1 of this article shall not exceed the amount of income in the form of an insurance premium (contribution) recognized in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting from January 1, 2012.

Footnote. Article 249 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).