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

Article 691. Income

1. For the purposes of this Clause, income of a taxpayer includes all types of income, except for that:

1) specified in paragraph 3 of Article 690 of this Code - for a legal entity;

2) specified in paragraphs 3 and 4 of Article 690 of this Code - for an individual entrepreneur.

2. If the recognition of income in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting differs from the procedure for determining and recognizing income in accordance with this Code, the specified income shall be taken into account for tax purposes in accordance with the procedure defined by this Code.

3. A taxpayer has the right to adjust income in accordance with paragraph 4 of this article. In this case, total annual income, with account of adjustments in accordance with paragraph 4 of this article, may have a negative value.

4. For the purposes of this Clause, an adjustment is an increase in the size of income for a reporting taxable period or decrease in the size of income for a reporting taxable period within the amount of earlier recognized income.

The income, specified in this article, is subject to adjustment in case of:

1) full or partial return of goods;

2) modification of the terms of a transaction;

3) changes in price, compensation for goods sold or purchased, works performed, services rendered;

4) price discounts, sales discounts;

5) changes in the amount payable in national currency for goods sold or purchased, works performed, services rendered based on the terms of a contract;

6) cancellation of a claim to a legal entity, an individual entrepreneur, a non-resident legal entity operating in the Republic of Kazakhstan through its permanent establishment, with regard to claims related to the activity of such a permanent establishment, as well as to a branch, representative office of a non-resident legal entity operating in the Republic Kazakhstan through a branch, representative office without the formation of a permanent establishment.

The income adjustment provided for in this subparagraph shall be downward in case of:

a failure to claim by a taxpayer-creditor in case of liquidation of a taxpayer-debtor as of the day of approval of its liquidation balance;

the taxpayer’s cancellation of a claim pursuant to the final and binding court judgment.

The adjustment provided for in this subparagraph shall be made within the amount of the cancelled claim and earlier recognized income from such a claim, given source documents confirming the emergence of the claim.

The adjustment provided for in subparagraphs 1) - 5) of part two of this paragraph shall be made given source documents confirming the occurrence of cases for such an adjustment.

The income adjustment is made within the taxable period, in which the cases, specified in this article, occurred.

In case of no income or insufficiency of its size for making downward adjustments within the period, in which the cases, specified in this article, occurred, the adjustment is made within the taxable period, in which the income subject to adjustment was earlier recognized.

5. If one and the same income can be stated in several income items, this income is included in income only once.

The date of recognition of income for tax purposes is determined in accordance with the provisions of this Clause.

Footnote. Article 691 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall come into effect from 01.01.2018).