New restrictions on expenses related to the purchase of intangible services from nonresident affiliates have been in effect since 2023.
Amendments have been made toArticle 264, subparagraph 23, of theTaxCode and toArticle288, subparagraphs 3–2, of the Tax Code.
What types of expenses are subject to restrictions:
— Consulting and auditing services;
— design, legal, and accounting services;
— legal, advertising, and marketing services;
— Franchising, financial (excluding compensation), engineering, and agency services; royalties; and the transfer of rights to use intellectual property.
The updates apply only to nonresident affiliates—parent companies, subsidiaries, and related parties.
The related parties are:
1. The persons specified in paragraph 2 of Article 1 of the Tax Code
2. Individuals and legal entities that appear to be related
3. A Group of Companies as a Structure Comprising Commercial and Non-Commercial Entities
organizations, including the parent company and its subsidiaries, through shares, equity interests, and other equity instruments.
If such expenses were incurred, Article 288 provides that the taxpayer is entitled to reduce taxable income by the amount of the aforementioned expenses, up to a total amount not exceeding 3 percent of taxable income.
If you still have questions about the limitations on KPN deductions for non-residents, you can ask an Egsat.kz expert during a free consultation. Submit a request, and we will contact you shortly.
