of September 26, 2014 No. NK-24/8017-I
To heads of the companies
(according to the list)
The Tax Committee of MF RK within the carried-out work on explanation of the tax legislation regarding the taxation of subsoil users reports the following.
According to item 10 of article 310 of the Tax Code in case of transfer of the extracted mineral raw materials which underwent primary conversion (enrichment) for the subsequent conversion to other legal entity (without transition of the property right) and (or) to structural or other technological division within one legal entity or use for own production needs the subsoil user determines the income by such transaction on the actual production cost of the production and primary conversion (enrichment) determined according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting increased by 20 percent.
At the same time according to subitem 6) item 2 of article 310 of the Tax Code production cost of production and primary conversion are the production costs determined according to International Financial Reporting Standards and requirements of the legislation of the Republic of Kazakhstan about financial accounting and the financial reporting, which are directly connected with extraction of minerals from subsoil on surface and their primary conversion (enrichment), except for costs on storage, transportation, realization of minerals, the all-administrative and other costs which are not connected directly with extraction of minerals from subsoil on surface and their primary conversion (enrichment).
Thus, for the purpose of determination of the income according to item 10 of article 310 of the Tax Code production cost is determined by contractual activities proceeding from the amount of all incured costs for production and primary conversion irrespective of these costs are subject to recognition as expense in the current tax period or not.
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.