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

Article 261. Deduction of subsoil user’s expenses for the training of Kazakhstani personnel and social development of regions

1. Expenses actually incurred by a subsoil user for the training of Kazakhstani personnel who are not subsoil user’s employees, as well as social development of regions, are deductible up to the amount stipulated ina subsoil use contract.

Subsoil user’s expenses for the training, advanced training or retraining of an employee in a speciality related to the production activity of a subsoil user are deductible in accordance with Article 257 of this Code.

2. Expenses specified in paragraph 1 of this article actually incurred by a subsoil user prior to the commencement of extraction after commercial discovery shall be deductible in the manner specified in Article 258 of this Code, up to the amount stipulated in a subsoil use contract.

3. For the purposes of this Article, expenses actually incurred by a subsoil user are recognized as:

1) those for the training of Kazakhstani personnel, including:

money for the training, advanced training and retraining of citizens of the Republic of Kazakhstan;

money transferred to the state budget for training, advanced training and retraining of citizens of the Republic of Kazakhstan;

actual expenses incurred by the taxpayer in order to perform the subsoil user’s duty in accordance with the legislation of the Republic of Kazakhstan on subsoil and subsoil use with regard to the financing of training and retraining of citizens of the Republic of Kazakhstan in the form of acquisition of goods, works and services required for the improvement of material and technical base of educational establishments training personnel in specialities directly related to the subsoil use sphere that are located in a region, a city of national significance, the capital, according to the list provided by local executive bodies of a region, a city of national significance, the capital and approved by the competent authority;

2) those for social development of a region – expenses for the development and maintenance of social infrastructure of a region, as well as money transferred for these purposes to the state budget.