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

Article 265. Deductions of fixed assets

Subject to deduction:

1) are depreciation allowances calculated in accordance with Article 271 of this Code;

2) is the value balance of a subgroup (group) as of the end of a taxable period in accordance with paragraphs 2 and 4 of Article 273 of this Code;

3) are subsequent expenses in accordance with Article 272 of this Code.
Article 266. Fixed assets

1. Unless otherwise provided for by this article, fixed assets include:

1) fixed assets, investments in real estate, intangible and biological assets, accounted for upon receipt in the taxpayer's accounting in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting and intended for the use in profit-oriented activities in the reporting and (or) upcoming periods, with the exception of the assets specified in subparagraph 2) of this paragraph;

2) assets with a service life of more than one year, transferred by a concession grantor into possession and use of a concessionaire (successor or legal entity specially set up by the concessionaire exclusively for the implementation of the concession agreement) under a concession agreement;

3) assets with a service life of more than one year, which are intended for use for more than one year in a profit-oriented activity, which are received into trust management by a trust manager;

4) subsequent expenses incurred in respect of property received under a contract of property lease (rent), except for a lease agreement, and recognized as a long-term asset in accounting records;

5) property transferred under a property lease (rent) agreement not accounted for as fixed assets, investments in real estate, intangible or biological assets after transfer under such an agreement, except for property transferred under a lease agreement – with regards to a lessor.

2. Fixed assets do not include:

1) fixed assets and intangible assets put into operation by a subsoil user before the commencement of extraction after commercial discovery and accounted for tax purposes in accordance with Article 258 of this Code;

2) assets for which depreciation costs are not calculated in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, except for:

assets specified in subparagraphs 2) and 4) of paragraph 1 of this article;

biological assets, investments in real estate, for which depreciation costs are not calculated due to accounting for such assets at fair value in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

3) land;

4) museum valuables;

5) pieces of architecture and art;

6) public facilities: motor roads, except for roads that are concession objects built and (or) received by a concessionaire under a concession agreement, sidewalks, boulevards, squares;

7) capital construction in progress;

8) objects related to the film fund;

9) state standards of measurement units of the Republic of Kazakhstan;

10) fixed assets, the value of which was earlier fully allocated to deductibles in accordance with the tax legislation of the Republic of Kazakhstan that was effective before January 1, 2000;

11) intangible assets with an indefinite useful life, recognized as such and accounted for in the taxpayer’s balance sheet in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

12) assets put into operation within an investment project under contracts granting the right of additional deductions from total annual income, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments;

13) assets put into operation within an investment project under contracts granting corporate income tax exemption, concluded before January 1, 2009 in accordance with the legislation of the Republic of Kazakhstan on investments, to the extent of the value allocated to deductibles before January 1, 2009;

14) objects of preferences during three taxable periods following the taxable period in which such facilities were put into operation, except for cases provided for by paragraph 14 of Article 268 of this Code;

15) assets with a service life of more than one year, being social facilities provided for in Article 239 of this Code;

16) assets specified in Article 260 of this Code;

17) assets received into temporary possession and use under a property lease (rent) agreement accounted for as fixed assets, investment in real estate, intangible or biological assets after receipt under such an agreement, except for assets received under a lease agreement - with regards to a lessee;

18) assets for which taxable income was reduced in accordance with subparagraph 7) of part one of paragraph 1 of Article 288 of this Code.

Footnote. Article 266 as amended by the laws of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018); dated 24.06. 2021 No. 53-VII (effective from 01.01.2022).