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

Article 289. Taxation of non-commercial organizations

1. For the purposes of this Code, a non-profit organization shall be an organization registered in the form established by the civil legislation of the Republic of Kazakhstan for a non-profit organization, with the exception of joint stock companies, institutions and consumer cooperatives, except for cooperatives of owners of premises (apartments), associations of property owners of an apartment building, which carries out activities in the public interest and meets the following conditions:

1) has no purpose of generating income as such;

2) does not distribute the received net income or property between the participants.

2. Subject to the conditions specified in paragraph 1 of this article, the following income of a non-profit organization shall be excluded from the gross annual income:

income under the contract for the implementation of the state social order;

deposit rewards;

entrance and membership fees;

contributions from owners of apartments, non-residential premises of an apartment building;

excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference arising from the money placed on the deposit, including the remuneration thereon;

income in the form of property received free of charge, including charitable assistance, a grant, including the one specified in subparagraph 13) of paragraph 1 of Article 1 of this Code, sponsorship, money and other property received free of charge.

For the purposes of this paragraph, the contributions of the owners of apartments, non-residential premises of an apartment building shall be:

mandatory expenses of the owners of apartments, non-residential premises of a multi-apartment residential building, aimed at accumulating money for the overhaul of the common property of the condominium object;

expenses of owners of apartments, non-residential premises of an apartment building for payment of targeted contributions;

penalty in the amount established by the legislation of the Republic of Kazakhstan, accrued in case of delay in payment by owners of apartments, non-residential premises of an apartment building for the costs of managing the condominium facility and maintaining the common property of the condominium facility.

The size and procedure for paying the costs of managing the condominium facility and maintaining the common property of the condominium facility by the owners of apartments, non-residential premises of an apartment building shall be approved by the meeting of owners of apartments, non-residential premises of an apartment building in the manner prescribed by the Law of the Republic of Kazakhstan "On Housing Relations".

In case of non-compliance with the conditions specified in paragraph 1 of this article, the exclusion from the total annual income provided for in this paragraph shall not be made.

3. Income of a non-profit organization not specified in paragraph 2 of this article shall be taxed in accordance with the generally established procedure.

In this case, the amount of expenses of a non-profit organization subject to deduction shall be determined in one of the following ways:

proceeding from the proportion of income not specified in paragraph 2 of this article in the total amount of income of a non-profit organization;

on the basis of tax accounting data, providing for the separate accounting of expenses incurred from the income specified in paragraph 2 of this article and expenses incurred from other income.

4. The provisions of this article shall not apply to non-profit organizations that are recognized:

1) autonomous educational organizations in accordance with Article 291 of this Code;

2) by organizations carrying out activities in the social sphere in accordance with Article 290 of this Code.

Footnote. Article 289 as amended by Law of the Republic of Kazakhstan No. 284-VІ dated December 26, 2019 (refer to Art. 2 for the enactment procedure); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).