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

Article 323. Income in kind of an employee

Income in kind of an employee, subject to taxation, is:

1) the value of goods, securities, participatory interests and other property (except for money) to be transferred by the employer into the employee’s ownership through labor relations. The value of such property is determined, with account of relevant amount of VAT and excises, as:

the book value of the property;

the value of the property specified in a contract or other document on the basis of which the property is transferred to the employee, in case of no book value of such property;

2) the employer’s performance of works, rendering of services for the benefit of the employee through labor relations. The value of works performed, services rendered is determined in the amount of the employer’s expenses incurred on such performance of works, rendering of services, with account of relevant amount of VAT and excises;

3) the value of the property received from the employer free of charge. The value of works performed, services rendered by the employer to the employee free of charge is determined in the amount of the employer’s expenses incurred on such performance of works, rendering of services;

4) the employer’s payment to an employee or third parties of the value of goods, works performed, services rendered to an employee by an employer or third parties. The value of such goods, works performed, services rendered is determined in the amount of the employer’s expenses incurred on such performance of works, rendering of services, with account of a relevant amount of VAT and excises.

An amenmend is provided in Article 324 by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).



Article 324. Income of an employee in the form of material benefit

Income of an employee in the form of material benefit subject to taxation is also:

1) negative difference between the value of goods, works, services sold to the employee, and the purchase price or the book value of these goods, works, services - in case of sale of goods, works, services to the employee;

The negative difference between the cost of work, services rendered to the employee, and the total amount of expenses of the employer incurred in connection with the performance of work, the provision of services, taking into account the appropriate amount of value added tax - during the implementation of work, services to the employee.

In order to apply this subparagraph, the purchase price is used by taxpayers who, according to the legislation of the Republic of Kazakhstan on accounting and financial reporting, do not conduct accounting;

2) write-off of the amount of the debt by the employer’s decision or the employee’s obligation to him/her/it –in case of writing off the amount of the employee’s debt;

3) employer’s expenses for the payment of insurance premiums under insurance contracts of his/her/its employees, also those concluded by employees - when paying the amount of insurance premiums under insurance contracts;

4) employer’s expenses for reimbursement of the employee’s expenses not related to the employer’s activity – in case of reimbursement of expenses to the employee.

An amenmend is provided in Article 325 by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall be enforced from 01.01.2021).