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

Article 693. Additional fixed deduction

When determining taxable income, a taxpayer, applying a special tax regime with a fixed deduction, has the right to include the amount of fixed deduction not exceeding 30 percent of the amount of income, which is determined with account of the adjustments provided for by paragraph 4 of Article 691 of this Code, in the amount of expenses allocated to deductibles.

In this case, if the provisions of part one of this article are applied, the total amount of expenses allocated to deductibles, including a fixed deduction, shall not exceed 70 percent of the amount of income with account of the adjustments provided for by paragraph 4 of Article 691 of this Code.
Article 694. Reduction of taxable income

1. A taxpayer has the right to reduce taxable income by 2 times the amount of expenses incurred on the payment of labor of disabled people and by 50 percent of the amount of the calculated social tax on wages and other payments to disabled people.

2. A legal entity has the right to reduce taxable income for the following types of income:

1) the value of property received in the form of humanitarian assistance in the event of emergencies of natural and man-made nature and used for its intended purpose;

2) income from increase in value when selling shares issued by a legal entity or participatory interests in a legal entity or consortium, unless otherwise provided for by subparagraph 3) of this paragraph, provided all of the following requirements are met:

as of the day of sale of these shares or participatory interests, a taxpayer has been holding them for more than three years;

an issuing legal entity or a legal entity, whose participatory interest is being sold, or a consortium participant selling his/her participatory interest in such a consortium, is not a subsoil user;

as of the day of such sale, the property of persons (a person) that are (is) subsoil users (subsoil user) is not more than 50 percent in the value of assets of an issuing legal entity or legal entity, whose participatory interest is being sold, or total value of assets of participants of a consortium, a participatory interest in which is being sold.

The period of the taxpayer’s ownership of shares or participatory interests, specified in this subparagraph, shall be determined with account of all the periods of ownership of shares or participatory interests by their former owners if such shares or participatory interests are received by the taxpayer as a result of reorganization of former owners.

For the purposes of this subparagraph, a subsoil user is not recognized as a subsoil user only because of its right to extract groundwater and (or) common minerals for own use;

3) income from increase in value when selling through open bids at a stock exchange in the territory of the Republic of Kazakhstan of securities that are in the official lists of this stock exchange as of the day of sale, reduced by losses arisen from selling through open bids at a stock exchange in the territory of the Republic of Kazakhstan of securities that are in the official lists of this stock exchange as of the day of sale.

3. A taxpayer applying a special tax regime with a fixed deduction has the right to reduce taxable income by the amount of the employer’s expenses, calculated in a reporting taxable period, for the employee’s income to be allocated to deductibles, when determining the taxable income in accordance with this Clause.

The reduction provided for by part one of this Paragraph, the taxpayer shall be entitled to make, provided that the average monthly wage of employees of such a taxpayer for the reporting tax period exceeds 47 times the monthly calculation indexes established by the law on the republican budget and effective as of January 1 of the relevant financial year.

Footnote. Article 694 as amended by the Law of the Republic of Kazakhstan dated 26.12.2018 No. 203-VI (shall be enforced from 01.01.2019).