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

Article 712-2. Taxation of persons entered into an investment agreement

1. Investment agreement, subject to the conditions provided for in Article 712-1 of this Code, may provide for the following preferences:

1) a reduction in corporate income tax calculated in accordance with Article 302 of this Code by 100 percent of income from implementation of an investment project by type of activity, determined by agreement on investments received by operation of fixed assets that were introduced as new production, expanded or updated within the framework of the investment agreement;

2) application of the 0 coefficient when calculating the land tax on land plots used for the implementation of the investment project;

3) application of the 0 percent rate to the tax base when calculating property tax on objects used for the implementation of an investment project;

4) exemption of turnover on the sale of goods, works, services from value-added tax in accordance with subparagraphs 39), 43-1) and 47) of Article 394 of this Code when the person who has entered into an investment agreement carries out activities in the territory of a special economic zone;

5) reduction of tax liabilities, calculated from the amount of actual expenses of the taxpayer, in accordance with Article 712-3 of this Code.

2. The deadline for the application of subparagraph 1) of paragraph 1 of this Article within the framework of an investment agreement shall begin on January 1 of the year in which such an agreement is concluded and end no later than ten consecutive years, which are calculated starting from January 1 of the year following the year, in which the agreement was made.

3. The deadline for the application of subparagraph 2) of paragraph 1 of this Article within the framework of an investment agreement shall begin on the 1st day of the month in which the agreement is concluded and end no later than ten consecutive years, which are calculated starting from January 1 of the year following the year in which such an agreement has been entered into.

4. The deadline for the application of subparagraph 3) of paragraph 1 of this Article within the framework of an investment agreement shall begin on the 1st day of the month in which the first asset is accounted for as fixed assets in accordance with international financial reporting standards and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, and (or) end no later than eight consecutive years, which are calculated starting from January 1 of the year following the year in which the first asset is accounted for as fixed assets in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting records and financial reporting.

5. Person who has entered into an investment agreement shall not be entitled to apply other provisions of this Code that provide for a reduction in corporate income tax, the use of reduced rates and coefficients when calculating property tax and land tax.

6. A person who has entered into an agreement on investments maintains a separate tax accounting of taxation objects and (or) objects related to taxation in order to calculate tax liabilities.

Footnote. Article 712-2, as amended by the laws of the Republic of Kazakhstan dated 20.12.2021 No. 85-VII (shall be enforced from 01.01.2022).