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

Article 226. Income to be included in total annual income

1. Total annual income includes all types of income of a taxpayer exclusive of the amount of VAT and excise duty:

1) income from sales;

2) income of an insurance, reinsurance organization under insurance, reinsurance contracts;

3) income from increase in value;

4) income from derivative financial instruments;

5) income from writing off obligations;

6) income from doubtful obligations;

7) income from decreasing the amount of provisions (reserves) created by a taxpayer entitled to deduct provisions (reserves) in accordance with paragraphs1, 5, 6 and 7 of Article 250 of this Code;

8) income from the assignment of the right of claim;

9) income from the disposal of fixed assets;

10) income from adjustment of expenses for geological study and preparatory works for the extraction of natural resources, as well as other subsoil users’ expenses;

11) income from the excess amount of contributions to the fund for liquidation of consequences of field development over the amount of actual expenses for liquidation of consequences of field development;

12) income from joint activity;

13) forfeits (fines, penalties) awarded or recognized by a debtor, except for fines groundlessly withheld but returned from the state budget, if these amounts were not earlier allocated to deductibles;

14) compensations received for earlier made deductions;

15) income in the form of property received free of charge;

16) dividends;

17) remuneration on deposit, debt security, bill of exchange, Islamic lease certificate;

18) excess of the amount of positive exchange rate difference over the amount of negative exchange rate difference;

19) winnings;

20) income received from operating social facilities;

21) income from the sale of an enterprise as a property complex;

22) income from an investment deposit in an Islamic bank;

23) net income from trust management of property (to be) received by a trust management founder;

24) income of a state-owned enterprise arising in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting in connection with depreciation of fixed assets assigned to such an enterprise on the right of economic management or operational management;

25) other income not specified in subparagraphs 1) - 24) of this paragraph.

2. If one and the same income can be stated in several items of income, this income is included in total annual income only once.

Unless otherwise established by Articles 227 - 240, paragraphs 5 and 6 of this section, for the purposes of this section, recognition of income, including the date of its recognition, shall be in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting .

In the event that 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 inclusive for tax purposes in the manner determined by this Code.

3. The total annual income of a trust manager and a trust management founder from the activity on trust management of property shall be determined with account of the provisions of Articles 40, 42, 43, 44 and 45 of this Code.

4. A taxpayer has the right to adjust income in accordance with Articles 286 and 287 of this Code. At the same time, the total annual income, subject to adjustments in accordance with Articles 286 and 287 of this Code, can have a negative value.

Footnote. Article 226 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018).