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

Article 44. Features of tax accounting for corporate and individual income taxes in case of trust management of assets in the form of participatory interest and shares

1. For the purposes of tax accounting:

income in the form of dividends on the participatory interest and shares held in trust, reduced by the amount of costs incurred by the trustee, reimbursed (reimbursable) on the basis of an agreement on trust management of property, an act on the establishment of trust management of property or other cases of occurrence of trust management of property and the trust manager's report on its activities (hereinafter -dividends from trust management), shall be deemed the income of the trust management founder;

assets from trust management of participatory interests and shares are assets of the founder of trust management.

Remuneration provided for by a trust management agreement, an act on the establishment of trust management of assets or in other cases of the emergence of trust management of assets, subject to payment to a trust manager, is the expense of the founder of trust management.

The income of a trust manager from trust management of participatory interests and shares shall include:

remuneration provided for by the act on the establishment of trust management of assets;

the amount of expenses incurred by a trust manager, the compensation of which is provided for by a trust management agreement, an act on the establishment of trust management of assets or in other cases of the emergence of trust management of assets and the trust manager’s report on his/her/its activity.

Expenses related to trust management of participatory interests and shares incurred by a trust manager, the compensation of which is provided for by a trust management agreement, an act on the establishment of trust management of assets or in other cases of the emergence of trust management of assets and the trust manager’s report on his/her/its activity are those of such trust managers, for the purposes of tax accounting.

Such expenses reduce the income of the founder of trust management in the form of dividends on participatory interests and shares that are in trust management and not accounted as costs and expenses of the founder of trust management.

2. The founder of trust management fulfills a tax obligation for corporate and individual income taxes in accordance with the procedure set forth in this Code.

3. A trust manager fulfills a tax obligation for corporate and individual income taxes on income, expenses and assets from trust management of participatory interests and shares in accordance with the procedure set forth in the Special Part of this Code for persons, including such a trust manager.

Footnote. Article 44 as amended by the Law of the Republic of Kazakhstan dated 21.12.2022 No. 165-VII (shall be enforced from 01.01.2023).



Article 45. Features of tax accounting for corporate and individual income taxes on acts on the establishment of trust management of assets, except for participatory interest and shares

1. For the purposes of tax accounting:

income on property in trust management, except for participatory interest and shares, reduced by the amount of expenses incurred by a non-resident trust manager, reimbursed (subject to reimbursement) on the basis of an act on the establishment of trust management of assets and the trust manager’s report on his/her/its activity, is the income of the founder of trust management;

assets from trust management of such assets belong to the founder of trust management;

remuneration provided for by an act on the establishment of trust management of assets, subject to payment to a trust manager, is the expense of the founder of trust management.

The income of a trust manager from trust management of assets, except for participatory interest and shares, shall include:

remuneration provided for by the act on the establishment of trust management of assets;

the amount of costs incurred by the trust manager, the compensation of which is provided for by the act on the establishment of trust management of assets and the trust manager’s report on his/her/its activity.

Expenses related to trust management of assets, except for participatory interest and shares, incurred by a trust manager, the compensation of which is provided for by the act on the establishment of trust management of assets and the trust manager’s report on his/her/its activity, are those of such a trust manager.

Such expenses reduce the income of the founder of trust management on assets, which are in trust management and not accounted as expenses of the founder of trust management.

2. The founder of trust management fulfills a tax obligation for corporate and individual income taxes on income from trust management and assets from trust management in accordance with the procedure set forth in this Code for persons, including such a founder.

3. A trust manager fulfills tax obligations for corporate and individual income taxes on income, expenses and assets from trust management in accordance with the procedure set forth in this Code for persons, including such a trust manager.