In 2026, an individual's income from property received free of charge from a tax agent is determined under the rules of Art. 428 of the Tax Code of the RK, taxable income for excess profits tax purposes is determined under Art. 802 of the Tax Code of the RK, and gross annual income under a subsoil use contract for the purposes of this tax is determined under Art. 803 of the Tax Code of the RK.
What Is Classified as Taxable Income
The term “taxable income” is used in different meanings. In budget accounting, it may refer to tax receipts, while in calculating the liabilities of a particular taxpayer, it may refer to income taken into account when determining the taxable item. An accountant must first establish which tax and which transaction are concerned.
For correct classification, it is necessary to check:
- who received the economic benefit: an individual, an individual entrepreneur, a legal entity, or a subsoil user;
- from whom the money or property was received;
- whether the receipt constitutes payment for goods, work, or services;
- whether the property was transferred free of charge;
- whether the transaction relates to a separate subsoil use contract;
- whether a special determination procedure is prescribed for such income.
The name of the payment in a contract or bank statement does not in itself resolve the matter. The substance of the transaction, source documents, and the applicable provision of the Tax Code of the RK are what matter.
A separate example is provided in Art. 428 of the Tax Code of the RK. If an individual receives property free of charge from a tax agent, the amount of income, including the corresponding amount of VAT and excise duties, is determined based on the carrying amount of the property, excluding revaluation. If there is no carrying amount, the value specified in the contract or another document under which the property was transferred applies (Art. 428 of the Tax Code of the RK).
The same article covers the value of work performed and services rendered in the amount of the tax agent's expenses; goods, work, and services received by an individual and paid for by the tax agent; and the amount of a forgiven or written-off debt or obligation, as determined by the document under which it was forgiven or written off. An increase in a contribution to the charter capital of a legal entity at the expense of an increase in value resulting from revaluation within its equity is also recognized as income (Art. 428 of the Tax Code of the RK).
Individual Entrepreneurs: Income Tax and Activities Without Income
For queries such as “individual entrepreneur income tax,” “tax on an individual entrepreneur's income,” or “individual entrepreneur income and taxes,” no single calculation procedure can be specified without information about the applicable tax regime and the particular receipts. The accountant should separate business revenue, refunds, loans, personal top-ups, and other movements of money, and then review each transaction against its documents and the relevant provisions.
The practical procedure is as follows:
- Match the receipt to a contract, statement of work performed, invoice, or another source document.
- Determine the economic substance of the transaction.
- Check whether the amount constitutes income under the particular regime being applied.
- Separately analyze transactions for which the Tax Code of the RK establishes a special procedure.
- Reconcile the tax register with the accounting records and bank statements.
Queries such as “tax for an individual entrepreneur without income” and “taxes for an individual entrepreneur without income” also require an analysis of the regime and circumstances. The absence of revenue for a period cannot be confirmed solely by a zero balance in the bank account: money may have been received and spent during the same period. Turnover, cash transactions, sales documents, and tax registers must be reconciled.
The specific amount of tax, the reporting form, and its submission deadline for an individual entrepreneur without income are determined with regard to the applicable regime, tax period, and status of the entrepreneur. The rules for one tax cannot automatically be applied to another.
Non-Taxable Income and Adjustments
The phrases “non-taxable income” and “income adjustment” are not interchangeable. In the first case, it is necessary to establish whether a specific provision excludes the receipt from the relevant taxable item. In the second case, this may involve changing an already calculated indicator on grounds provided for by the Tax Code of the RK.
A receipt cannot be excluded from the calculation solely because it is not related to an ordinary sale. For example, the Tax Code of the RK provides for the determination of income when a tax agent transfers property to an individual free of charge, pays for goods, work, or services on behalf of an individual, or forgives or writes off a debt or obligation (Art. 428 of the Tax Code of the RK).
For verification, the accountant needs at least the underlying document, information about the parties to the transaction, and the method used to determine the value. If property is transferred, its carrying amount excluding revaluation must be established. If no such amount exists, the value specified in the contract or another document under which the property was transferred to the individual is used. The amount of income is determined taking into account the corresponding amount of VAT and excise duties (Art. 428 of the Tax Code of the RK).
The query “tax on income from shares” requires a separate analysis. For correct classification, it is necessary to distinguish dividends, income from the sale of shares, and other related receipts, as well as to determine the recipient's status and the source of payment. These transactions cannot be combined and subjected to a single rate.
Special Calculation of a Subsoil User's Income
A special procedure applies to excess profits tax. Taxable income is determined as the difference between gross annual income under a subsoil use contract, calculated under Art. 803 of the Tax Code of the RK, and deductions for the purposes of calculating excess profits tax. In the calculation, this difference is reduced by the amounts of income and expenses stipulated by the Tax Code of the RK (Art. 802 of the Tax Code of the RK).
If deductions for the purposes of calculating excess profits tax exceed gross annual income for the tax period, the excess is carried forward to be offset against the taxable income of subsequent consecutive tax periods (Art. 802 of the Tax Code of the RK). This provision does not establish a numerical limit on the period for such carryforward.
For the purposes of calculating excess profits tax, a subsoil user determines gross annual income from contractual activities separately for each subsoil use contract according to the procedure established for determining aggregate annual income, subject to the exceptions provided for by the Tax Code of the RK. Therefore, indicators under different contracts must be kept separate in the tax calculation (Art. 803 of the Tax Code of the RK).
For certain income from the sale, transfer, and disposal of assets, Art. 803 of the Tax Code of the RK provides that income is determined in the amount of the full value of such sale, transfer, or disposal. For assets whose value is not deductible for excess profits tax purposes, income is determined according to the special rules referenced by this article (Art. 803 of the Tax Code of the RK).
Frequently Asked Questions
What does the term “taxable income” mean? — Its meaning depends on the context. To calculate a taxpayer's liabilities, it is necessary to identify the specific tax, the income recipient, and the transaction, and then apply the relevant provision of the Tax Code of the RK.
Does an individual entrepreneur pay tax if there was no income? — No single answer can be given without information about the tax regime and circumstances. First, the absence of income taken into account under the relevant regime must be documented, after which the entrepreneur's other obligations for that period must be determined.
Is a forgiven debt considered an individual's income? — The amount of a forgiven or written-off debt or obligation is included in an individual's income from property received free of charge from a tax agent if the transaction meets the conditions of this provision. The amount is determined by the document under which the forgiveness or write-off was made (Art. 428 of the Tax Code of the RK).
How is income determined when property is transferred free of charge? — Income, including the corresponding amount of VAT and excise duties, is determined based on the carrying amount of the property excluding revaluation or, if no such amount exists, based on the value specified in the contract or another document under which the property is transferred to the individual (Art. 428 of the Tax Code of the RK).
How should excess profits tax indicators be separated? — Taxable income is calculated under the rules of Art. 802 of the Tax Code of the RK, while gross annual income from contractual activities is determined separately for each subsoil use contract under the rules of Art. 803 of the Tax Code of the RK.
Can income from shares be immediately excluded from taxation? — No. To reach a conclusion, it is necessary to determine the type of income, the recipient's status, the source of payment, and the applicable provision of the Tax Code of the RK.