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

Article 520. Tax base

1. Unless otherwise established by this article, the tax base for taxable items of individual entrepreneurs and legal entities, specified in subparagraphs 1), 3), 4) and 5) of paragraph 1 of Article 519 of this Code, is the average annual book value of taxable items determined on the basis of accounting data.

In case of no average annual book value of concession assets, the tax base is the value of such assets determined in accordance with the procedure determined by the Government of the Republic of Kazakhstan.

2. For the taxable facilities of individual entrepreneurs and legal entities specified in subparagraphs 2) and 7) of paragraph 1 of Article 519 of this Code, the tax base shall be established in the amount of the average annual sum of receivables, including long-term, determined 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. The average annual book value of taxation objects shall be determined as one thirteenth of the amount obtained by adding up the book values ​​of taxation objects on the 1st day of each month of the current tax period and the 1st day of the month of the tax period following the reporting one.

If the terms of the subsoil use contract provide for the fulfillment of obligations to dismantle and remove objects of taxation, as well as the provisions of the Environmental Code of the Republic of Kazakhstan require the implementation of activities related to the liquidation fund of waste disposal sites, then the assessment of such obligations, determined in accordance with international financial reporting standards and ( or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting shall not be included in the book value of taxation objects when maintaining separate accounting.

If the provisions of the Law of the Republic of Kazakhstan "On the main pipeline" provide for the fulfillment of obligations to liquidate the main pipeline, then the assessment of such obligations, determined in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting shall not be included in the book value of taxation objects when maintaining separate accounting for the value of such obligations.

If the energy transmission organization accepts on its balance sheet electrical networks recognized as ownerless in accordance with the civil legislation of the Republic of Kazakhstan or received free of charge in accordance with the legislation of the Republic of Kazakhstan, the cost of such networks shall not be included in the tax base before taking into account the amount of property tax on such networks in the tariff estimate in accordance with paragraph 8 of Article 13-1 of the Law of the Republic of Kazakhstan "On Electricity".

4. The average annual amount of receivables, including long-term, established in accordance with international financial reporting standards and (or) requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, is determined as one thirteenth of the amount received by adding the amounts of receivables, including long-term, on the 1st day of each month of the current taxable period and the 1st day of the month of the taxable period following the reporting one.

5. As for taxable items of legal entities, specified in subparagraphs 3) and 4) of paragraph 3 of Article 517 of this Code, the tax base is determined on the basis of the share of these taxable items provided for use, transferred into trust management or leased out.

6. Unless otherwise provided for by this paragraph, the tax base for taxable items of individual entrepreneurs that do not maintain accounting records and compile financial statements in accordance with the Law of the Republic of Kazakhstan “On Accounting and Financial Reporting” is the sum total of costs for their acquisition, production, construction, assembly, installation, as well as reconstruction and modernization.

In this case, reconstruction and modernization are recognized in accordance with paragraph 2 of Article 269 of this Code.

In case of no source documents confirming the costs for acquisition, production, construction, assembly, installation, reconstruction and modernization, as well as for taxable items received as a result of transactions, the price (value) of which is unknown, or free of charge, also in the form of donation, inheritance, gift, charitable assistance, the tax base is the market value of:

1) a taxable item as of the date of emergence of the right of ownership of the asset;

2) a taxable item of the payers, specified in paragraph 6 of Article 518 of this Code, as of the date of its recognition by payers for such items.

In this case, the market value is determined in areport on appraisal conducted under an agreement between the appraiser and the taxpayer in accordance with the legislation of the Republic of Kazakhstan on the appraisal activity.

7. If Article 41 of this Code provides for the fulfillment of tax obligations for the property tax by a trust manager, the tax base is the average annual book value of such taxable items, which in accordance with the procedure specified in paragraph 3 of this article, is determined by:

1) the trust manager on his/her/its own - if such property was put onto his/her/its books;

2) a state institution, on whose books such property is placed. In this case, data on the tax base of such property shall be submitted to the trust manager annually, on or before February 1.

In case of no data on the average annual book value of the property, specified in subparagraph 2) of part one of this paragraph, in the course of compiling tax returns on the property tax, the tax base for such property is its book value, indicated in a certificate of its acceptance and transfer in accordance with paragraph 4 of Article 41 of this Code.

Footnote. Article 520 as amended by the laws of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2018); dated 02.01.2021 No. 402-VI (shall be enforced from 01.01.2022); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).