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

Article 767. The order for calculating alternative subsoil use tax

1. An alternative subsoil use tax is determined for a taxable period on contract activity with regard to each individual subsoil use contract.

2. An item subject to an alternative subsoil use tax is defined as the difference between total annual income for the purposes of calculating an alternative subsoil use tax and deductions for the purposes of an alternative subsoil use tax, with account of the adjustments provided for in Article 287 of this Code.

Given the specifics provided for in paragraph 4 of Article 722-1 of this Code, for a subsoil user under a contract for exploration and production or production of hydrocarbons on complex offshore projects, the excess of deductions for the purposes of calculating the alternative tax on subsoil use over the amount of the total annual income calculated for the purposes of the alternative tax on subsoil use for the tax period shall be carried over to the next ten years inclusive for repayment at the expense of the taxable income calculated for the purposes of the alternative tax on subsoil use of the taxable income of these subsequent tax periods.

3. Total annual income for the purposes of calculating an alternative subsoil use tax is determined in accordance with the procedure specified in this Code for the purposes of calculating corporate income tax, except for the excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference not to be included in total annual income for purposes of calculating an alternative subsoil use tax and without account of the adjustment of total annual income provided for in Article 241 of this Code.

For the purposes of this paragraph, the excess of the amount of a positive exchange difference over the amount of a negative exchange difference arising from the write-off prior to commercial discovery during the period of exploration by a strategic partner of the obligations of a national company for subsoil use or a legal entity whose shares (stakes in the authorized capital) are directly or indirectly owned by such national mining company shall not be considered as an income.

4. Deductions for the purposes of calculating an alternative subsoil use tax shall be determined in accordance with the procedure established by this Code for the purposes of calculating corporate income tax, with account of the following:

remuneration, including that to be allocated to deductibles in accordance with Article 246 of this Code or to be accounted for as capital expenses, is not subject to deduction;

the excess of the amount of a negative exchange difference over the amount of a positive exchange difference, including as part of the expenses attributable to deductions in accordance with Article 258 of this Code, shall not be subject to deduction;

the amount of the calculated (assessed) corporate income tax is not deductible.

5. If same expenses (costs) are provided for in several types of expenses (costs) established by paragraph 4 of this article, when calculating an alternative subsoil use tax, these expenses (costs) shall be deducted only once.

6. An alternative subsoil use tax is calculated as the product of an item subject to such a subsoil use tax and the rate established by Article 768 of this Code.

Footnote. Article 767 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).