ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of December 18, 2025 No. 1102

About approval of criteria of reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category low-profitable, and also Rules of determination of level of profitability and level of internal profitability rate

According to item 4 of article 753 of the Tax Code of the Republic of Kazakhstan the Government of the Republic of Kazakhstan DECIDES:

1. Approve enclosed:

1) criteria of reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category of low-profitable;

2) Rules of determination of level of profitability and level of internal profitability rate.

2. Recognize invalid some decisions of the Government of the Republic of Kazakhstan according to appendix to this resolution.

3. This resolution becomes effective since January 1, 2026 and is subject to official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of December 18, 2025 No. 1102

Criteria of reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category of low-profitable

Note: calculation of level of profitability for the field is made by the subsoil user independently according to the Rules of determination of level of profitability and level of internal profitability rate approved according to item 4 of article 753 of the Tax Code of the Republic of Kazakhstan.  

Approved by the Order of the Government of the Republic of Kazakhstan of December 18, 2025 No. 1102

Rules of determination of level of profitability and level of internal profitability rate

Chapter 1. General provisions

1. These rules of determination of level of profitability and level of internal profitability rate (further – Rules) are developed according to item 4 of article 753 of the Tax Code of the Republic of Kazakhstan (further – the Tax code) and determine procedure for determination of level of profitability and level of internal profitability rate.

2. These rules determine procedure for determination of level of profitability and level of internal profitability rate by the field (to group of fields on one contract for subsurface use, part of the field) firm types of minerals and do not extend to fields on popular minerals.

3. In these rules the following basic concept is used:

the interconnected parties – the physical and (or) legal entities having relations which correspond to one or several conditions, stipulated in Item 1 article 14 of the Tax Code.

Other concepts and terms used in these rules are applied according to the Tax code.

Chapter 2 Procedure for determination of level of profitability and level of internal profitability rate

Paragraph 1. Reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category of low-profitable

4. For reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category low-profitable the subsoil user performing activities for the contract for subsurface use providing mining (groups of fields on one contract for subsurface use, parts of the field) firm types of minerals, including to the prisoner till January 1, 2009 corresponding to criteria of reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category low-profitable, approved according to item 4 of article 753 of the Tax Code (further – criteria of low-profitability), notifies the authorized body performing management in the sphere of ensuring receipts of taxes and payments in the budget.

At the same time the copy of the notification goes the subsoil user to tax authority in the place of registration accounting of the taxpayer.

5. The notification on reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category low-profitable the current incomplete calendar year moves no later than September 1 of calendar year in form according to appendix to these rules in time.

The notification on reference of the field (group of fields on one contract for subsurface use, part of the field) firm types of minerals to category low-profitable forthcoming calendar year moves not earlier than September 1, but no later than December 1 of the current calendar year.

6. The field (group of fields on one contract for subsurface use, part of the field) of firm types of minerals belongs to the category low-profitable in case of its compliance to criteria of low-profitability and observance of conditions, stipulated in Item 5 these rules.

7. The income and expenses (deductions) on exchange difference, and also the income and expenses (deductions) of the subsoil user on remunerations are not considered when calculating of the planned level of profitability and internal profitability rate for the field.

Paragraph 2. Calculation of the planned profitability level for the field (to group of fields on one contract for subsurface use, part of the field) firm types of minerals

8. Calculation of the planned profitability level for the field (to group of fields on one contract for subsurface use, part of the field) firm types of minerals for calendar year is made based on forecast data of the subsoil user, including the prices of mineral raw materials, solid minerals, metal, conversion product for the corresponding tax period, based on production amounts taking into account compliance with law of the Republic of Kazakhstan about transfer pricing as follows:

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