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

Article 396. Turnover from the sale related to land and residential buildings

1. Exempt from VAT:

1) is the sale of a residential building (part of a residential building), except for a part of a residential building consisting exclusively of non-residential units;

2) is the lease (sublease) of a residential building (part of a residential building), except for a part of a residential building consisting exclusively of non-residential units;

3) are services for arranging accommodation in student and school dormitories, workers’ settlements, children’s holiday hotels, sleeping cars.

2. Transfer of the right of possession and (or) use, and (or) disposal of a land plot and (or) lease of a land plot (land share), including sublease, shall be exempt from value added tax, except for:

1) transfer of the right of possession and (or) use, and (or) disposal, and (or) lease of a land plot (land share) provided and (or) used for the placement of paid parking lots (parking places);

2) transfer of the right of possession and (or) use, and (or) disposal of a land plot (land share) when selling a part of a residential building, consisting exclusively of non-residential premises;

3) transfer of the right of possession and (or) use, and (or) disposal of a land plot (land share) occupied by a building (part of a building) that is not related to a residential building, including the lease (sublease) of a land plot (land share).

Footnote. Article 396 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).



Article 397. Turnover from the sale of financial transactions exempt from VAT

1. Financial transactions, provided for in paragraph 2 of this article, are exempt from VAT.

2. Financial transactions exempt from VAT are as follows:

1) banking and other transactions carried out on the basis of a license by banks and organizations carrying out certain types of banking operations, as well as transactions conducted by other legal entities without a license within the limits of their powers established by the laws of the Republic of Kazakhstan, such as:

acceptance of deposits, opening and maintenance of bank accounts of individuals;

acceptance of deposits, opening and maintenance of bank accounts of legal entities;

opening and maintenance of correspondent accounts of banks and organizations carrying out certain types of banking operations;

opening and maintenance of metal accounts of individuals and legal entities that state the physical quantity of refined precious metals and coins made of precious metals belonging to these persons;

transfer operations, including postal money transfers;

bank loan operations;

cash operations;

exchange transactions with foreign currency, including exchange transactions with cash foreign currency;

acceptance of payment documents for collection (excluding bills of exchange);

opening (issuing) and confirmation of a letter of credit and fulfillment of its obligations;

banks’ issuance of cash-covered bank guarantees;

banks’ issuance of cash-covered bank guarantees and other third-party obligations;

factoring and forfaiting operations carried out by banks;

2) the following banking operations of the Islamic Bank carried out on the basis of a license:

acceptance of non-interest bearing demand deposits of individuals and legal entities, opening and maintenance of bank accounts of individuals and legal entities;

acceptance of investment deposits of individuals and legal entities;

bank loan operations: granting of cash loans on terms of maturity, repayment and without charges;

3) operations with securities;

4) services of professional securities market participants, as well as persons engaged in professional securities market activity without a license in accordance with the legislation of the Republic of Kazakhstan on permits and notifications;

5) transactions with derivative financial instruments;

6) insurance (reinsurance) operations, as well as services of insurance brokers (insurance agents) for concluding and executing insurance (reinsurance) contracts;

7) interbank clearing services;

8) transactions with payment cards, electronic money, checks, bills of exchange, deposit certificates;

9) management of an investment portfolio with the right to attract voluntary pension contributions (voluntary accumulative pension fund), as well as assets of the state social insurance fund;

10) services for managing the rights to claim mortgage housing loans;

11) services of the single accumulative pension fund and voluntary accumulative pension funds for attracting social welfare payments and voluntary pension contributions, allocating and crediting the investment income from pension assets;

12) services of the social medical insurance fund for accumulating deductions and contributions to compulsory social health insurance, for the procurement of services for medical assistance from healthcare entities, for the implementation of other functions set forth by the laws of the Republic of Kazakhstan;

13) sale of a participatory interest;

14) operations for granting microcredits;

15) is excluded by Law of the Republic of Kazakhstan No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020);

16) the issuance by the credit partnership to its participants of guarantees, sureties and other obligations, providing for the performance in cash, for the participants of the credit partnership;

17) sale of investment gold through metal accounts opened with second-tier banks, as well as with the National Bank of the Republic of Kazakhstan for the category of legal entities serviced by the National Bank of the Republic of Kazakhstan;

18) assignment of the rights to claim credits (loans, microcredits);

19) the operations specified in paragraph 3 of this article.

20) operations of investment funds registered in accordance with the current law of the International financial centre “Astana”, as well as services for the management of these funds.

3. Exempt from VAT is the amount of a mark-up on products realizable by the Islamic Bank to the buyer, which is determined by the terms of a commercial loan agreement concluded in accordance with the legislation of the Republic of Kazakhstan on banks and banking activity.

The provisions of this paragraph shall apply in case of the Islamic bank’s transfer of property, in accordance with the banking legislation of the Republic of Kazakhstan, within the framework of financing of individuals and legal entities as a trade intermediary by way of granting a commercial loan:

1) without the term of subsequent sale of goods to a third party;

2) on the terms of subsequent sale of goods to a third party.

The provisions of this paragraph do not apply to the Islamic bank’s sale of a product to a third party in case a buyer refuses to execute a commercial loan agreement.

Footnote. Article 397 as amended by Law of the Republic of Kazakhstan No. 262-VI dated 03.07.2019 (shall be enforced since 01.01.2020); dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).