Kazakhstan Tax Deductions 2025

Corporate Income Tax (CIT) Deductions

• General Principle: In calculating taxable income for CIT purposes, companies can deduct expenses that meet specific criteria as defined in the Tax Code of the Republic of Kazakhstan.
• Deductible Expenses:
  • Business Expenses: Deductible expenses typically include costs directly related to business activities, such as:
    • Salaries and employee compensation
    • Rent payments
    • Utilities
    • Cost of goods sold
    • Depreciation of fixed assets (subject to limitations)
  • Interest Expenses: Deductibility of interest expenses is generally allowed, with some limitations depending on the type of debt and related-party transactions.
• Non-Deductible Expenses: The Tax Code also specifies expenses that are not deductible for CIT purposes.
  These may include:
  • Expenses not related to business activities
  • Certain penalties and fines
  • Specific types of taxes
• Depreciation: Companies can deduct depreciation expenses for fixed assets over their useful life.
  The Tax Code sets out the rules and rates for depreciation.
• Loss Carry-Forward: Tax losses can generally be carried forward for up to ten years to offset future taxable income.

Important Considerations for Foreign Investors

• Documentation: Proper documentation of expenses is crucial for claiming deductions.
  Tax authorities require evidence to support the deductibility of expenses.
• Related Party Transactions: Transactions with related parties are subject to specific rules and may be scrutinized by tax authorities to ensure they are conducted at arm's length.
• Double Tax Treaties (DTTs): DTTs between Kazakhstan and other countries may influence the deductibility of certain expenses, particularly in cross-border transactions.
• Tax Code Compliance: All deductions must comply with the requirements outlined in the Tax Code of the Republic of Kazakhstan.