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

Article 231. Income of an insurance, reinsurance organization under insurance, reinsurance contracts

1. The income of an insurance, reinsurance organization under insurance, reinsurance contracts is income of an insurance, reinsurance organization in the form of:

1) insurance premiums (contributions);

2) increase in reinsurance assets on unearned premiums, avoided losses, reported but unsettled losses, incurred but unreported losses;

3) reimbursement of expenses for insurance payments;

4) reduction of insurance reserves by insurance, reinsurance companies under insurance, reinsurance contracts;

5) other income under insurance and reinsurance contracts, except for income specified in Article 237 of this Code.

Income associated with the activities of insurance, reinsurance companies on conclusion and execution of insurance (reinsurance) contracts shall be determined on the basis of reporting data established by the National Bank of the Republic of Kazakhstan, taking into account the requirements of the authorized body for regulation, control and supervision of the financial market and financial organizations, coordinated with the authorized body and the authorized tax policy body.

2. The provisions of this article shall not apply to insurance, reinsurance contracts, under which income in the form of insurance premiums in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting is recognized in full before January 1, 2012 .

3. The income of an insurance, reinsurance company in the form of reinsurance assets calculated on unearned premiums, avoided losses, reported but unsettled losses, incurred but undeclared losses is recognized as a positive difference between the amount of reinsurance assets calculated in accordance with the legislation of the Republic of Kazakhstan on insurance and insurance activities on unearned premiums, avoided losses, reported but unsettled losses, incurred but unreported losses as at the end of the reporting tax period and the amount of such assets at the end of the previous tax period.

4. Reimbursement of expenses for insurance payments of an insurance, reinsurance organization on the basis of the right of exoneration (recourse) applied with respect to a person that caused the damage, and (or) a reinsurance organization under a reinsurance contract is recognized as income of an insurance, reinsurance organization in the form of reimbursement of expenses for insurance payments.

Alongside this, under the agreements of accumulative insurance, reinsurance, non-cumulative insurance, life reinsurance that took effect before January 1, 2012 on which income in the form of insurance premiums is recognized in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting, including after December 31, 2011, the income of an insurance, reinsurance company in the form of reimbursement of expenses on insurance payments is determined by the following formula:

Iх (A/B), where:

I - income (to be) received in a reporting taxable period in the form of reimbursement of expenses for insurance payments;

A - insurance premiums (to be) received in the form of reimbursement of expenses for insurance payments from December 31, 2011 until the day of recognition of income in a reporting taxable period;

B - insurance premiums (to be) received in the form of reimbursement of expenses for insurance payments from the effective date of the agreement until the day of recognition of income in a reporting taxable period.

Footnote. Article 231 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (effective from 01.01.2018); dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).