20. Corporate income tax: the classification characteristic, bases of construction and the collection mechanism.

Payers of the legal entity - resident of the RK. -legal entity-non-residents operating in th

Republic of Kazakhstan)

Not payers of: -state institutions.

Objects of taxation:

1) taxable income; (the difference between the gross annual income subject to adjustments stipulated by the Code and provided for the deductions.)

2) income taxed at the source of payment;

3) the net income of a legal person-non-resident carrying out activities in Kazakhstan through a permanent establishment. (NI-tax.inc. - the amount of paid to him died-th tax)

Income, included in the aggregate annual income: income from sales; income from capital gains, income from derivative financial instruments, income from the write-off of liabilities; income for doubtful liabilities; income from decrease of created provisions (reserves) of the banks and organizations, income from the reduction of the insurance reserves, created insurance, reinsurance companies, income from the disposal of fixed assets, income from the adjustment of expenditures on geological surveying and preparatory work for the extraction of natural resources, as well as other expenses users of mineral resources; income from the implementation of the joint (joint) activities; awarded or recognised by the debtor of fines (penalty), fines (fee) and other kinds of sanctions; dividends; interest on deposits, debt securities, bills of exchange; winnings; income received during the exploitation of objects of social sphere; income on the investment Deposit in an Islamic Bank.

Terms of payment: the Tax period - calendar year from 1 January to 31 December. Declaration of rent up to 31 March of the year following the reporting period. The payment of the corporate income tax return according to the results of налог.периода not later than 10 days after the deadline established for the submission of the Declaration. The rates of CIT: Taxable income cash, will be subject to withholding tax at a rate of 15 %. Taxable income of legal entities - producers of agricultural production, reduced by the amount of losses, will be subject to withholding tax at a rate of 10 %. In addition to the corporate income tax net income of legal entity-non-resident carrying out activities in Kazakhstan through a permanent establishment is subject to taxation at a rate of 15%. Income, rated at the source of payment; winnings, the income of non-residents from sources in the Republic of Kazakhstan, the remuneration.

21. Investment tax preferences. Investment tax preferences (hereinafter referred to as preferences) are applied at a taxpayer's choice and represent the deductions of preference facilities cost and (or) subsequent costs for reconstruction, upgrading.

Preferences items include buildings and structures for industrial purposes, machinery and equipment which have been put into operation in the territory of the Republic of Kazakhstan for the first time and which simultaneously comply with the following conditions during at least three tax periods following the tax period when operation was commenced: 1) they are assets stipulated in sub-item; 2) they are used by a taxpayer who applied preferences in the activity intended for revenue receipt. For the purposes of preferences application, a reconstruction, upgrading of fixed assets is the type of subsequent costs the results of which simultaneously shall be: - change of fixed asset structure including renovation; - extension of fixed asset life cycle or more than three years; - improvement of technical specification of a fixed asset comparing with its technical specification at the beginning of a calendar month when said fixed asset has been temporarily taken out of operation for reconstruction, upgrading. For the purposes of preferences application, buildings of industrial purposes include nonresidential buildings (sections of nonresidential buildings) except: - trading buildings (sections of such buildings); - buildings for cultural and entertainment purposes (sections of such buildings); - hotels, restaurants and other buildings for short-term accommodation, catering (parts of such buildings); - office buildings (parts of such buildings).