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

Article 370. Non-taxable turnover

Non-taxable turnover is:

1) turnover from the sale of goods, works, services, exempt from VAT in accordance with this Code;

2) turnover from the sale of goods, works, services, the place of sale of which is not the Republic of Kazakhstan.

Unless otherwise established by this article, the place of sale of goods, works, services is determined in accordance with Article 378 of this Code.

The place of sale of goods, works, services in the member states of the Eurasian Economic Union is determined in accordance with Article 441 of this Code;

3) turnover in the form of stock on hand, which is the goods, specified in Article 394 of this Code.
Article 371. The definition of taxable import

Taxable import is goods that are or were imported into the territory of the member states of the Eurasian Economic Union (except for those exempted from VAT in accordance with Article 399 of this Code), subject to declaration in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan.
Chapter 42. TURNOVER FROM THE SALE OF GOODS, WORKS, SERVICES AND TURNOVER FROM THE PURCHASE OF WORKS, SERVICES FROM A NON-RESIDENT
Article 372. Turnover from the sale of goods, works, services

1. Turnover from the sale of goods means:

1) transfer of ownership of goods, including:

sale of goods, shipment of goods, also on installment payment terms and (or) in exchange for other goods, works, services;

sale of an enterprise in whole as a property complex;

transfer of goods free of charge;

transfer of goods by an employer to an employee as debt repayment;

transfer of pledged property by a pledger into the ownership of a buyer or a pledgee;

2) export of goods;

3) shipment of goods, also on installment payment terms and (or) in exchange for other goods, works, services;

4) transfer of property into financial lease, specifically concerning the value at which the leased asset was transferred;

5) shipment of goods under a commission agreement or an agency agreement;

6) placement of goods, earlier exported under the customs export procedure, under the customs re-import procedure;

7) loss of goods purchased without VAT under the customs procedure for free customs zone, except for the goods specified in Article 394 of this Code.

2. Turnover from the sale of works, services means any performance of works or rendering of services, also on a non-repayable basis, as well as any paid activity other than the sale of goods, including:

1) provision of property into temporary possession and for use under property lease agreements, except for lease agreements;

2) remuneration for the transfer of property into financial lease under a lease agreement;

3) granting of rights to intellectual property objects;

4) performance of works, rendering of services by an employer to an employee as debt repayment;

5) assignment of the rights of claim related to the sale of goods, works, services, except for advance payments and penal sanctions;

6) consent to limit or terminate entrepreneurial activity;

7) provision of a credit (loan, microcredit);

8) financing of individuals and legal entities by an Islamic bank as a trade intermediary by way of granting a commercial loan on the terms of subsequent sale of goods to a third party or without such conditions, in accordance with the legislation of the Republic of Kazakhstan on banks and banking activity;

9) acted until 01.01.2022 in accordance with the Law of the Republic of Kazakhstan dated 27.12.2019 No. 295-VI.

Note!

Subparagraph 10) shall be valid from 01.01.2022 to 01.01.2024 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII.




10) receipt of a temporary balancing fee in accordance with the legislation of the Republic of Kazakhstan on railway transport by an operator of locomotive traction in passenger traffic.

3. Turnover from the sale of goods, works and services of a structural unit of a resident legal entity registered in the territory of a foreign state, the place of sale of which is not the Republic of Kazakhstan, which is not turnover from the sale of goods, works or services of such a legal entity in the Republic of Kazakhstan.

4. Non-residents operating in the Republic of Kazakhstan through structural units recognize the turnover from the sale of works, services of such structural units, provided that one of the following conditions is observed:

a contract concluded by a structural unit of a non-resident legal entity is available;

an invoice for works, services issued by a structural unit of a non-resident legal entity is available;

an acceptance certificate for performed works, rendered services signed by a structural unit of a non-resident legal entity is available;

a contract concluded with a non-resident legal entity, providing for the performance of works, rendering of services by a structural unit of this non-resident legal entity, is available;

an acceptance certificate for performed works, rendered services signed by a non-resident legal entity indicates that works were performed, services were rendered by a structural unit of this non-resident legal entity;

income for works performed, services rendered is paid to a structural unit of a non-resident legal entity.

5. None of the following is turnover from sale:

1) transfer of property as a contribution to the authorized capital;

2) transfer of goods to a shareholder, a participant, a founder when distributing property:

in case of liquidation of a legal entity or reduction of the authorized capital - up to the amount of the paid authorized capital attributable to a participatory interest, the number of shares, by which the authorized capital is reduced;

in case of redemption of a participatory interest or part thereof in a legal entity from its founder, participant by this legal entity - up to the amount of the paid authorized capital attributable to a redeemable participatory interest;

in case of redemption of shares issued by an issuing legal entity from a shareholder - up to the amount of the paid authorized capital attributable to the redeemable number of shares;

3) free transfer of the goods for promotional purposes if the value of a unit of such goods does not exceed 5 times the monthly calculated index established by the law on the national budget and effective as of the date of such transfer;

4) shipment of toll goods by the customer to the contractor for the manufacture, processing, adjustment (assembly, installation), repair of finished products by the latter and (or) construction of facilities. In the case of manufacture, processing, assembly, repair outside the customs territory of the Eurasian Economic Union, the shipment of these goods shall not be a turnover for sale if their export is carried out in the customs procedure of processing outside the customs territory in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan;

5) shipment of returnable containers. A returnable container is a container, the value of which is not included in the sales value of a product sold in it, and which shall be returned to a supplier on the terms and within the time limits specified in a contract for the supply of this product, in any event within a six-month period. If a container is not returned within the prescribed period, its value shall be included in the turnover from sale in accordance with paragraph 14 of Article 381 of this Code;

6) return of goods by a recipient (buyer), who is a VAT payer;

7) shipment of goods earlier imported under the customs procedure for free customs zone into the territory of the special economic zone, the limits of which fully or partially coincide with the sections of the customs border of the Eurasian Economic Union;

8) export of goods outside the customs territory of the Eurasian Economic Union for exhibitions, other cultural and sporting events, subject to re-import on the conditions and within the terms established by the contract, if such export is registered in the customs procedure for temporary export in accordance with the customs legislation of the Eurasian Economic Union and (or) the customs legislation of the Republic of Kazakhstan;

9) transfer by a subsoil user into the ownership of the Republic of Kazakhstan of newly created and (or) acquired property that was used in subsoil use operations and is subject to transfer to the Republic of Kazakhstan in accordance with the terms of the concluded subsoil use contract;

10) placement of securities by their issuer;

11) transfer of fixed assets, intangible assets and other property of a legal entity under reorganization to its successor (successors), including goods, for which turnover is recognized as stock on hand, in accordance with subparagraph 3) of paragraph 1 of Article 369 of this Code;

12) transfer of an object of concession to a concession grantor, as well as subsequent transfer of the object of concession to a concessionaire (successor or a legal entity set up solely by the concessionaire to execute a concession agreement) for operating it under a concession agreement;

13) turnover on the sale by an individual who is an individual entrepreneur or a person engaged in private practice, the personal property of such an individual;

14) transfer of property to a trust manager by a trust management founder;

15) return of property by a trust manager upon the termination of trust management;

16) the trust manager’s transfer of net income from trust management to the trust management founder;

17) receipt by a depositor (client) of the amount of remuneration accrued and (or) paid to him/her under bank account and (or) bank deposit agreements;

18) operation of a state-owned object of concession by a concessionaire with availability payment under concession projects of special significance, the list of which is approved by the Government of the Republic of Kazakhstan;

19) management of an object of concession by a concessionaire with availability payment under concession projects of special significance, the list of which is approved by the Government of the Republic of Kazakhstan;

20) exportation of goods from the territory of the Republic of Kazakhstan into the territory of another member state of the Eurasian Economic Union in connection with their transfer (movement) within one legal entity;

21) receipt of payment for organizing the collection, transportation, processing, treatment, use and (or) utilization of waste by operators of producers’ (importers’) extended obligations;

22) funding of enterprises for stimulating the production of environmentally friendly motor vehicles (of stage IV emission standard and higher; with electric motors) and their components in the Republic of Kazakhstan;

23) transfer of minerals to a recipient on behalf of the state by a subsoil user in fulfillment of the tax obligation to pay taxes in kind;

24) sale of minerals transferred by a subsoil user in fulfillment of the tax obligation to pay taxes in kind by a recipient on behalf of the state or a person authorized by the recipient on behalf of the state for such sale;

25) rendering of services for the sale of minerals transferred by a subsoil user in fulfillment of the tax obligation to pay taxes in kind by a recipient on behalf of the state or a person authorized by the recipient on behalf of the state for such sale, for a commission fee in form of reimbursement of expenses for the sale of such minerals;

26) activity funded on a non-reimbursable basis with a purpose-oriented contribution provided for by the budget legislation of the Republic of Kazakhstan;

27) receipt by an autonomous cluster fund, assigned by the legislation of the Republic of Kazakhstan on an innovative cluster, of payments from the state budget within the budget program aimed at the targeted transfer solely for setting up joint ventures with participation of transnational corporations, as well as for equity participation in foreign investment funds;

28) was valid until 01.01.2021 in accordance with the Law of the Republic of Kazakhstan dated 25.12.2017 No. 121-VI;




29) fulfillment by the recipient of charitable, sponsorship, grant of conditions for their provision;

30) budgetary subsidy for losses in the form of negative difference between income and expenses, and (or) for expenses.

For the purposes of this subparagraph, income and expenses shall be determined in accordance with international financial reporting standards and (or) requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting;

31) rendering of services for free transmission of electric power by electric power transmission organizations to entities using renewable energy sources;

32) was valid until 01.01.2020 in accordance with Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017;

33) was valid until 01.01.2020 in accordance with Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017;

34) was valid until 01.01.2019 in accordance with Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017.

35) was valid until 01.01.2022 in accordance with Law of the Republic of Kazakhstan No. 295-VІ dated 27.12.2019.

36) was valid from 01.01.2018 to 01.01.2021 in accordance with the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI;




37) receipt of money to the current account of a private enforcement agent, intended for the storage of recovered amounts in favor of recoverers;

Note!

Subparagraph 38) shall be valid from 01.01.2022 to 01.01.2024 in accordance with the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII.




38) provision by the National infrastructure operator of the main railway network of services in the carriage of passengers by rail to a railway carrier engaged in the carriage of passengers, baggage, cargo luggage, postal items, on a gratuitous basis, including with the application of a temporary reduction factor of 0 to the tariff on regulated services of the main railway network for the carriage of passengers by rail in accordance with the legislation of the Republic of Kazakhstan.

Footnote. Article 372 as amended by the Law of the Republic of Kazakhstan dated 03.04.2019 No. 243-VI (shall be enforced upon expiry of ten calendar days after its first official publication); No. 295-VІ dated 27.12.2019 (shall be enforced since 01.01.2020); dated 10.12.2020 No. 382-VI (see Article 2 for the procedure of entry into force); dated 21.12.2022 No. 165-VII (shall be valid from 01.01.2022 to 01.01.2024).