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

Article 251. Deduction of reduction in reinsurance assets

Insurance, reinsurance companies shall have the right to deduct the amount of reduction of reinsurance assets previously recognized as income in accordance with Article 231 of this Code for unearned premiums, avoided losses, reported but unsettled losses, incurred but undeclared losses in the amount determined as the negative difference between the amount of reinsurance assets calculated in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities on unearned premiums, avoided losses, reported but unsettled losses, incurred but unreported losses at the end of the reporting taxable period and the amount of such assets at the end of the previous taxable period.

Footnote. Article 251 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).



Article 252. Deduction of expenses for liquidation of consequences of field development and amounts of contributions to liquidation funds

1. A subsoil user operating on the basis of a subsoil use contract, concluded in the manner determined by the legislation of the Republic of Kazakhstan, deducts the amount of contributions to the liquidation fund from total annual income. The specified deduction is made up to the amount of actually paid contributions to a special deposit account with any second-tier bank in the territory of the Republic of Kazakhstan by the subsoil user for a taxable period.

The amount and procedure for deductions to the liquidation fund shall be established by the subsoil use contract or the field development project in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use.

If the authorized state body for subsoil use establishes the fact of the subsoil user’s inappropriate use of the liquidation fund’s resources, the inappropriately used amount shall be included in the subsoil user’s total annual income for a taxable period in which it occurred, except for the fact of inappropriate use revealed in the taxable period exceeding the limitation period established by Article 48 of this Code, under which the amount of inappropriately used money shall be included in the subsoil user’s total annual income for a taxable period for which the limitation period expires in a taxable period following current taxable period.

If the subsoil user receives, in accordance with the legislation of the Republic of Kazakhstan, the liquidation fund’s resources from another subsoil user upon the transfer of subsoil use contract, the subsoil user that received such resources:

shall not be included in the total annual income, provided that they are placed on a special deposit account with any second-tier bank in the territory of the Republic of Kazakhstan for the formation of a liquidation fund in the year of their receipt or within thirty calendar days from the date of their receipt;

does not allocate them to deductibles.

2. The subsoil user’s expenses actually incurred during a taxable period for the liquidation of consequences of field development are deductible in the taxable period in which they were incurred, except for expenses covered by the liquidation fund’sresources placed into a special deposit account.

Footnote. Article 252 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).