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

Article 271. Calculation of depreciation allowances

1. The value of fixed assets is allocated to deductibles by calculating depreciation allowances in the manner and under the conditions established by this Code.

2. Unless otherwise established by this article, depreciation allowances for each subgroup and group are determined by applying depreciation rates specified in a tax register to determine value balances of groups (subgroups) of fixed assets and subsequent expenses for fixed assets, which shall not exceed the limits established by this paragraph, to the value balance of a subgroup, a group at the end of a taxable period:

Item №	Group №	Fixed assets	Maximum rate of depreciation (%)
1	2	3	4
1.	I	Buildings, structures, except for oil, gas wells and transfer devices	10
2.	II	Machinery and equipment, except for machinery and equipment for oil and gas production, as well as computers and information processing equipment	25
3.	III	Computers, software and information processing equipment	40
4.	IV	Fixed assets not included in other groups, including oil, gas wells, transfer devices, machinery and equipment for oil and gas production	15

3. Depreciation allowances for value balances of groups (subgroups) specified in paragraph 10 of Article 267 of this Code are determined by applying depreciation rates established by this Article to such value balances of groups (subgroups) at the end of a taxable period.

4. As to buildings and structures, except for oil, gas wells and transfer devices, depreciation allowances are determined for each facility separately.

5. In case of liquidation or reorganization of a taxpayer, switching of a legal entity from special tax regime on the basis of a simplified declaration to the calculation of corporate income tax in accordance with this Section, and also in case of termination of application of special tax regime for producers of agricultural products, aquaculture products and agricultural cooperatives, depreciation allowances are adjusted for the period of activity in a taxable period.

6. A taxpayer shall have the right to recognize buildings and facilities for production purposes put into operation in the territory of the Republic of Kazakhstan for the first time, machinery and equipment that comply with the provisions of paragraph 2 of Article 274 of this Code:

as fixed assets and deduct their value in the manner specified in paragraph 3 of this section, or

as objects of preferences and allocate their value to deductibles under the conditions and in the manner specified in paragraph 4 of this Section.

7. As to fixed assets put into operation in the Republic of Kazakhstan for the first time, a subsoil user is entitled to calculate depreciation allowances at double depreciation rates in the first taxable period of operation provided that these fixed assets are used to obtain total annual income for at least three years. These fixed assets in the first taxable period of operation are accounted for separately from the group’s value balance. In a subsequent taxable period, these fixed assets are subject to inclusion in the value balance of a relevant group.

In case of disposal of a fixed asset for which depreciation allowances were calculated in accordance with this paragraph, prior to the expiration of a three-year period, the amount of deduction of the fixed asset in excess over the amount of depreciation allowances determined by maximum depreciation rates provided for in this Article shall be included in total annual income of the taxable period in which the double depreciation rate was applied.

The provisions of this paragraph apply only to fixed assets that simultaneously meet the following requirements:

1) they are assets that, due to the specific nature of their use, have a direct causal link to the implementation of activities under a subsoil use contract (contracts);

2) in tax accounting, subsequent expenses incurred by the subsoil user on these assets are not subject to distribution between activities under a subsoil use contract (contracts) and non-contract activities.

For the purposes of this paragraph, a contract for extraction of groundwater shall not be recognized as a subsoil use contract, provided that the subsoil user engaged in the extraction of groundwater is a subsoil user solely because of possessing such a right to extract groundwater and uses the extracted groundwater for soft drinks production, as well as a contract for exploration and production or production of hydrocarbons on complex projects (excluding onshore gas projects).

7-1. Given the specifics provided for in paragraph 4 of Article 722-1 of this Code, depreciation charges for each subgroup, group shall be determined by the subsoil user under a contract for exploration and production or production of hydrocarbons on complex projects (with the exception of onshore gas projects) by applying fixed assets indicated in the tax register for determination of the cost balances of groups (subgroups) and subsequent expenses on fixed assets of depreciation rates, which should not exceed the marginal rates established by this paragraph, to the cost balance of the subgroup, group at the end of the tax period:

No.	Group No.	Name of fixed assets	Marginal depreciation rate (%)
1	2	3	4
1.	I	Buildings, structures, except oil and gas wells and transfer devices	15
2.	II	Machinery and equipment, except oil and gas machines and equipment, as well as computers and information processing equipment	37,5
3.	III	Computers, software and information processing equipment	60
4.	IV	Fixed assets not included in other groups, including oil and gas wells, transfer devices, machinery and equipment for oil and gas production,	22,5

8. With regard to activities providing for 100 percent reduction of corporate income tax calculated in accordance with Article 302 of this Code, taxpayers calculate depreciation allowances at the following depreciation rates:

at least 50 percent of maximum depreciation rates established by this article - regarding an organization implementing a priority investment project and not applying special tax regime;

within maximum depreciation rates established by this article - regarding other taxpayers.

Footnote. Article 271 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2021); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).