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

Article 703. Object of taxation

1. The object of taxation for a taxpayer applying a special tax regime for peasant or farm households shall be income received during the tax period from the sale of agricultural products, products of processing of agricultural products of their own production, with the exception of activities for the production, processing and sale of excisable goods.

2. The income, determined for the purposes of paragraph 1 of this article, shall consist of income received (to be received) in the Republic of Kazakhstan and abroad (taking into account the adjustments made in accordance with paragraph 6 of this article).

3. Income determined for the purposes of paragraph 1 of this article shall include:

1) income from writing off obligations;

2) income in the form of property received free of charge (except for charitable assistance) intended for use in the activities specified in paragraph 1 of this article.

Size proceeds described in paragraph 2 above, when using the special tax regime for country or farms shall be determined in accordance with articles 226 - 240 of the Code, paragraphs 5, 6 and 7 of this article.

4. Upon receipt of income from activities that, in accordance with paragraph 3 of Article 702 of this Code, shall not be subject to the special tax regime for peasant or farm enterprises, taxpayers calculate, pay the relevant taxes and submit tax reports on them in one of the following regimes taxation, subject to the conditions of their application established by this Code:

1) in special tax regimes for small businesses - subject to the conditions for the application of such taxation regimes established by this Code.

At the same time, the amount of income for the purpose of applying the limit on the size of the marginal income for such regimes shall not include income from activities that are subject to a special tax regime for peasant or farm enterprises;

2) in the generally established order.

5. For tax purposes, the following shall not be considered as income of a taxpayer applying a special tax regime for peasant or farm households:

1) the value of the property transferred free of charge - for the taxpayer transferring such property;

2) the sale of assets redeemed for state needs in accordance with the laws of the Republic of Kazakhstan.

6. For the purposes of this chapter, an adjustment shall be an increase in the amount of income for the reporting tax period or a decrease in the amount of income for the reporting tax period within the amount of previously recognized income.

The income specified in paragraph 2 of this article shall be subject to adjustment in the following cases:

1) full or partial return of goods;

2) changes in the terms of the transaction;

3) price changes, compensation for goods sold or purchased, work performed, services rendered;

4) price discounts, sales discounts;

5) changes in the amount payable in national currency for goods sold or purchased, work performed, services rendered based on the terms of the contract;

6) writing off a claim from a legal entity, individual entrepreneur, non-resident legal entity operating in the Republic of Kazakhstan through a permanent establishment, in accordance with the requirements related to the activities of such a permanent establishment, as well as from a branch, representative office of a non-resident legal entity operating in the Republic Kazakhstan through a branch, a representative office, which did not lead to the formation of a permanent establishment.

Adjustment of income provided for by this subparagraph shall be carried out downward in the following cases:

non -claim by the taxpayer-creditor of the claim upon liquidation of the taxpayer-debtor on the day of approval of its liquidation balance sheet;

the taxpayer's write-off of the claim according to a court decision that has entered into legal force.

The adjustment provided for by the third paragraph of the second part of this sub-paragraph shall be made within the amount of the written-off claim and previously recognized income for such a claim if there are primary documents confirming the occurrence of the claim.

The adjustment provided for in subparagraphs 1) - 5) of the second part of this paragraph shall be made in the presence of primary documents confirming the occurrence of cases for the implementation of such an adjustment.

Adjustment of income shall be made in the tax period in which the cases specified in this article occurred.

If there is no income or its size is insufficient to make a downward adjustment in the period in which the cases specified in this article occurred, the adjustment shall be made in the tax period in which the income subject to adjustment was previously recognized.

7. If the same income can be reflected in several items of income, these incomes shall be included in income once.

The date of recognition of income for tax purposes shall be determined in accordance with the provisions of this chapter.