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

Article 692. The order for identifying expenses allocated to deductibles

1. When determining taxable income, subject to deductions are taxpayer’s expenses related to performance of the activity aimed at obtaining income, except for expenses not subject to deduction in accordance with Section 7 of this Code.

2. For the purposes of this Clause, subject to deductions are expenses for:

1) purchasing goods;

2) assessed income of employees and other payments to individuals, to be allocated to deductibles in accordance with Article 257 of this Code;

3) the payment of taxes and payments to the budget, to be allocated to deductibles in accordance with Article 263 of this Code;

4) amounts of compensation for official business trips, to be allocated to deductibles in accordance with Article 244 of this Code;

5) payment for communication services, electricity, water, heat, gas used for business purposes;

6) expenses incurred by the tenant concerning the leased property used for business purposes.

3. When determining taxable income, an individual entrepreneur has the right to apply tax deductions provided for in Article 342 of this Code, unless he/she has applied them as an individual, also from a tax agent.

4. In the cases provided for by this Code, the amount of expenses allocated to deductibles shall not exceed the established norms.

5. A taxpayer makes deductions, given documents confirming that such expenses are related to his/her/its activity aimed at obtaining income, unless otherwise established by Article 693 of this Code.

These expenses shall be deductible in the tax period in which they were incurred, except for deferred expenses determined in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting.

6. Deferred expenses determined in accordance with international financial reporting standards and (or) the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting shall be subject to deduction in the tax period to which they relate.

7. The taxpayer’s expenses, specified in this article, shall be subject to adjustment in the cases provided for by paragraph 4 of Article 691 of this Code.

In this case, for the purposes of this Clause, an adjustment is an increase in the size of deduction for a reporting taxable period or decrease in the size of deduction for a reporting taxable period within the amount of earlier recognized deduction.

Footnote. Article 692 as amended by the Law of the Republic of Kazakhstan dated December 10, 2020, No. 382-VI (refer to Article 2 for the procedure of enacting).