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

Article 743. Tax rates for mineral extraction

1. Unless otherwise established by paragraph 2 of this article, the rates of the mineral extraction tax on oil shall be fixed according to the following scale:

Item №	Volume of annual extraction	Rates, %
1	2	3
1.	up to 250 000 tons, incl.	5
2.	up to 500 000 tons, incl.	7
3.	up to 1 000 000 tons, incl.	8
4.	up to 2 000 000 tons, incl.	9
5.	up to 3 000 000 tons, incl.	10
6.	up to 4 000 000 tons, incl.	11
7.	up to 5 000 000 tons, incl.	12
8.	up to 7 000 000 tons, incl.	13
9.	up to 10 000 000 tons, incl.	15
10.	over 10 000 000 tons	18

In case of sale and (or) transfer of oil on the domestic market of the Republic of Kazakhstan, also in the in-kind form, to pay the mineral extraction tax, the export rent tax, royalties and share of the Republic of Kazakhstan within production sharing to the recipient on behalf of the state or use for own production needs in accordance with the procedure specified in subparagraphs 1), 2), 3) and 4) of paragraph 2 of Article 739 of this Code, a reduction factor of 0.5 is applied to the established rates.

The rate of the mineral extraction tax on crude gas is 10 percent.

In case of sale of crude gas on the domestic market, depending on the volume of annual production, the mineral extraction tax is paid at the following rates:

Item №	Volume of annual extraction	Rates, %
1	2	3
1.	up to 1,0 billion cubic meters, incl.	0,5
2.	up to 2,0 billion cubic meters, incl.	1,0
3.	over 2,0 billion cubic meters	1,5

2. The rates of the mineral extraction tax on oil for sites (a group of sites, part of a site) classified as low-profit, high-viscosity, watered, low-yield, worked-out under contract for hydrocarbon extraction are established by the Government of the Republic of Kazakhstan.
Clause 2. The mineral extraction tax on mineral raw materials, except for common minerals
Article 744. Taxable item

A taxable item is the physical volume of reserves of minerals contained in mineral raw materials (taxable volume of recovered reserves).

For the purposes of this section, the taxable volume of extinguished reserves shall be the volume of extinguished reserves of minerals contained in mineral raw materials, minus the volume of actual losses for the tax period within the normalized losses established by the technical project for the development of the deposit, approved by the state body of the Republic of Kazakhstan authorized for these purposes.

For the purposes of identifying a taxable item, it is necessary to use the units of measurement used in report and summary balances of mineral stocks provided to the authorized body for the study and use of subsoil resources.

Footnote. Article 744 as amended by the Law of the Republic of Kazakhstan dated 10.12.2020 No. 382-VI (shall come into effect from 01.01.2020).