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

Article 686. Calculation of patent value

1. The patent value includes the amounts of payable individual income tax (except for individual income tax withheld at source of payment) and social payments.

2. The calculation of the amount of individual income tax included in the cost of a patent shall be made by applying a rate of 1 percent to the taxable item.

2-1. shall be valid from 01.01.2020 to 01.01.2022 in accordance with Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017.

3. Social payments included in the patent value are calculated in accordance with the laws of the Republic of Kazakhstan “On Pension Provision in the Republic of Kazakhstan”, “On Compulsory Social Insurance” and “On Compulsory Social Health Insurance”.

4. If the amount of income actually received within the period of the patent validity exceeds the amount of income specified in the calculation, individual entrepreneurs are obliged, within five business days, to submit the calculation in the form of additional tax returns on the excess amount and pay taxes thereon.

The provisions of this paragraph shall not apply if the amount of actually received income exceeded the amount of the marginal income established by subparagraph 2) of paragraph 2 of Article 683 of this Code.

A new patent is created in place of a previous one on the basis of this calculation.

5. If the amount of income actually received within the patent validity (including cases of its early termination) is less than the amount of income specified in the calculation, individual entrepreneurs may submit the calculation in the form of additional tax returns on the amount of the patent value reduction.

In this case, the amounts of taxes paid in excess shall be refunded in the manner prescribed by Chapter 11 of this Code.

6. If the amount of actually received income exceeds the amount of the marginal income established by subparagraph 2) of paragraph 2 of Article 683 of this Code, the income of an individual entrepreneur, received from the date of application of the generally established procedure or another special tax regime established by Article 679 of this Code, is taxed in accordance with the generally established procedure or in the manner determined by the special tax regime.

7. If the business activity is terminated before the patent expiration, the paid tax amount is not subject to refund and recalculation, except for the case of declaring an individual entrepreneur legally incompetent.

Footnote. Article 686 as amended by Law of the Republic of Kazakhstan No. 121-VI dated 25.12.2017 (shall be valid from 01.01.2018 to 01.01.2022).

Paragraph 2-1. Special tax regime using a special mobile application

Footnote. Chapter 77 is supplemented with paragraph 2-1 in accordance with the Law of the Republic of Kazakhstan dated 24.06. 2021 No. 53-VII (shall come into effect from 01.01.2022).