Article 134 of the Tax Code of the Republic of Kazakhstan regulates the taxation of certain categories of organizations, specifically non-profit organizations and those engaged in activities within the social sphere. It establishes the conditions under which these organizations may be subject to special rules for determining taxable income and the relevant tax reporting requirements.

Key Provisions

• Applicability: Article 134 applies to non-profit organizations that meet specific criteria outlined in the Tax Code, as well as to organizations in the social sphere that fulfill the conditions set out in Article 135. Autonomous educational organizations may also fall under Article 134 if they meet certain requirements.
• Taxable Income: The article specifies which types of income earned by these organizations are subject to taxation. Only the income detailed in Item 2 of Article 134 is considered taxable for qualifying non-profit organizations and certain educational institutions.
• Tax Reporting: Organizations that fall under Article 134 are required to use specific forms and follow particular rules for tax declaration. The forms and the procedure for their completion are determined by the Ministry of Finance and are designed to reflect the special tax treatment provided by Article 134.

Exclusions and Special Regimes

• Taxpayers using special tax regimes, such as the simplified declaration regime, are generally not subject to Article 134. For these taxpayers, the object of taxation is the total income for the tax period, with certain exceptions, and the provisions of Article 134 do not apply.
• The taxable income for organizations under Article 134 is calculated differently from that of organizations under the general regime, focusing only on specified income types and often excluding certain expenses or revenues that would otherwise be taxable.

Practical Implications

• Non-profit and certain educational or social organizations must carefully assess whether they meet the criteria of Article 134 to benefit from its provisions.
• Correct application of Article 134 can result in significant tax advantages, as only specific types of income are taxed.
• Failure to comply with the requirements or to use the correct tax reporting forms could result in the loss of preferential tax treatment or potential penalties.

Summary Table

Organization Type	Applicability of Article 134	Taxable Income Basis	Special Forms Required
Non-profit organizations (meeting criteria)	Yes	Only income in Item 2, Art. 134	Yes
Organizations in the social sphere (per Art. 135)	Yes (if criteria met)	As above	Yes
Autonomous educational organizations (some cases)	Yes (if criteria met)	As above	Yes
Taxpayers on simplified declaration regime	No	All income (with exceptions)	No

Country by Country Reporting

Country-by-country (CbC) reporting is a global standard for tax transparency, requiring large multinational enterprise (MNE) groups to provide tax authorities with aggregate data on their global allocation of income, taxes paid, and economic activity by jurisdiction. Kazakhstan, as part of its commitment to the OECD’s Base Erosion and Profit Shifting (BEPS) Action 13, has integrated CbC reporting requirements into its national legislation.

Kazakhstan has adopted CbC reporting requirements in line with BEPS Action 13, mandating that MNE groups with consolidated revenues of at least EUR 750 million file a CbC report if they have operations in two or more jurisdictions. These requirements are embedded in Kazakhstan’s transfer pricing regulations and tax legislation, which are administered under the authority of the Tax Code.

The Tax Code, including Article 134, serves as the legal foundation for these requirements. It ensures that:

• Taxpayers are only liable for taxes and reporting obligations explicitly provided for by the Code.
• The procedure for tax reporting, including CbC reporting, is established and enforced under the Code.
• Penalties for non-compliance with CbC reporting obligations are set out in the Code, with recent increases in fines for failing to file or submitting incomplete notifications.

Summary Table: Article 134 and CbC Reporting

Aspect	Article 134 / Tax Code of Kazakhstan	Country-by-Country Reporting (CbCR)
Legal Basis	Tax Code (incl. Article 134)	Embedded in Tax Code, per BEPS Action 13
Scope	All tax obligations in Kazakhstan	MNE groups with revenue ≥ EUR 750 million
Reporting Requirement	As prescribed by the Code	CbC report with global tax and income data
Enforcement	Tax authorities per Tax Code	Fines for non-compliance set by Tax Code
International Alignment	Follows international treaties	Aligned with OECD BEPS Action 13